# Completing the eCommerce payment circle Author: Pal Sinha, Barnali Author URL: https://financedigest.com/author/pal-sinha-barnali Published: 2019-03-07 Category: BUSINESS Category URL: https://financedigest.com/category/business Meta Title: Outsourced Accounts Receivable Management: The Key to Meta Description: Discover how outsourcing accounts receivable management to your payment service provider can automate payment processing and increase efficiency in eCommerce URL: https://financedigest.com/completing-ecommerce-payment-circlehtml ![undefined](https://prod.superblogcdn.com/site_cuid_cm5qst7v3003gwirgwqtxn8i8/images/accounts-1736839119025-compressed.jpg) By **Ralf Gladis,** CEO, Computop An order arrives: the best thing that can happen to an online retailer. However, if they manage their accounts receivable processes themselves, it can quickly become quite complicated. Especially if they are trading cross-border. The efficiency of an eCommerce site depends not just on the customer-facing front-end, but on how well the merchandise management, [order and payment processing](https://www.financedigest.com/keep-your-head-in-the-cloud-improving-the-order-to-cash-process.html "Keep your head in the cloud: improving the order-to-cash process") is handled in the back-office. Every stage from taking the customer’s order, accepting their payment, shipping and delivering their product, managing inventory, and processing [returns has to work](https://www.financedigest.com/are-businesses-using-cybersecurity-as-a-scapegoat-for-a-desperate-return-to-office-working.html "Are Businesses Using Cybersecurity As A Scapegoat For A Desperate Return To Office Working?") in tandem. Not least is the smooth running of the accounts receivable processes. Are they integrated into the [system landscape or is the accounts data](https://www.financedigest.com/interoperability-of-data-to-accelerate-the-ventilator-test-systems-market.html "Interoperability of data to accelerate the Ventilator Test Systems Market") only transferred to it via an interface? If so, what happens to chargebacks and how do incoming payments and open items in the [customer account](https://www.financedigest.com/covid-19-has-made-your-customer-accounts-more-valuable.html "Covid-19 has made your customer accounts more valuable") come together? It is precisely these transfer [points that hold](https://www.financedigest.com/polish-central-bank-holds-rates-points-to-slowdown-ahead.html "Polish central bank holds rates, points to slowdown ahead") the greatest potential for complications, which can then quickly result in expensive manual reworking, not something that any eCommerce retailer wants to be hampered with. [Linking payment and accounting](https://www.financedigest.com/digitised-prize-linked-savings-accounts-how-it-can-encourage-better-financial-habits.html "Digitised prize-linked savings accounts: How it can encourage better financial habits") is a logical step. It is the payment flow that is to be [recorded and which constitutes the tax](https://www.financedigest.com/irish-corporate-tax-boom-breaks-more-records-in-november.html "Irish corporate tax boom breaks more records in November") liability. That’s why more and more eCommerce retailers are shifting their accounts receivable processes to their payment [service provider](https://www.financedigest.com/unprecedented-constructive-disruption-to-drive-the-sleep-service-providers-market.html "Unprecedented, constructive disruption to drive the Sleep Service Providers Market"), especially those for whom cross-border trading is a core part of their offer. The link means that in practice, the payment processor automatically [creates](https://www.financedigest.com/customer-experience-creating-the-calm-in-the-chaos.html "Customer Experience: creating the calm in the chaos") a customer account when a new customer makes a payment transaction.  Depending on the payment method, incoming payments are monitored or reconciled with confirmation by the selected payment method. In the case of purchase on invoice or prepayment, the reminder is sent after a fixed period of time, and if desired, the risk of non-payment can even be covered without the involvement of factoring or collection. Of course, the [customer receives their invoice automatically with the correct payment](https://www.financedigest.com/why-late-payments-are-hurting-your-customer-as-well-as-your-business.html "Why late payments are hurting your customer, as well as your business") confirmation or request. On receipt of payment, settlement is automated, the open position is closed and the accounting is updated. Select payment [service providers will also support](https://www.financedigest.com/tech-amigos-provides-unrivalled-aws-cloud-service-support-for-autorama-groups-leading-brand-vanarama-2.html "Tech Amigos provides unrivalled AWS cloud service support for Autorama Group’s leading brand, Vanarama") retailers who no longer want to monitor and reconcile the EPA files of different payments and acquirer connections. As well as improving payment processing efficiency, the other advantage of [outsourced accounts](https://www.financedigest.com/how-young-founders-are-embracing-outsourced-accounting.html "How Young Founders Are Embracing Outsourced Accounting") receivable management is that it can have an even greater impact on returns, removing the need to issue credit notes or cancellations which are often still processed manually in retail operations today. A solution that combines both payment service provision with accounting, can [automate accounting chargebacks and payments to customers](https://www.financedigest.com/why-no-code-beats-custom-software-and-turnkey-solutions-for-business-automation.html "Why no-code beats custom software and turnkey solutions for business automation") if they return goods. This is even possible across different sales channels, so that if a customer orders online or via mobile, but wants to exchange or return their items in-store, they can receive their money back on the same [card or via the same payment](https://www.financedigest.com/can-banks-acquire-customers-with-biometric-payment-cards.html "Can banks acquire customers with biometric payment cards?") method they used for the original purchase, including posting to the customer account. In today’s multichannel environment, this is what [customers expect](https://www.financedigest.com/how-omnichannel-cx-can-help-insurers-meet-customer-expectations.html "How omnichannel CX can help insurers meet customer expectations") and it should be what all retailers are able to provide. In the context of the multichannel environment, retailers should be aware of the different [exchange rates and currencies](https://www.financedigest.com/currency-exchange-how-to-find-the-best-rates.html "Currency Exchange: How to Find the Best Rates") in the markets they are selling to. Payment [service providers](https://www.financedigest.com/sleep-service-providers-market-report.html "Sleep Service Providers Market Report") are able to convert almost all payment methods automatically. Advanced PSPs let the customer choose between Direct Currency Conversion (DCC), which gives [retailers](https://www.financedigest.com/analysis-u-s-retail-traders-pile-back-into-options-as-meme-stock-mania-flares.html "Analysis-U.S. retail traders pile back into options as meme-stock mania flares") the option to adjust the currency conversion dynamically and the option to carry out the conversion before the customer makes the purchase and not at checkout. The merchant benefits from a stable exchange rate throughout the transaction process, including subsequent returns or credits. Automated reports on transactions made and [revenues generated](https://www.financedigest.com/digitally-projected-revenue-to-be-the-unique-selling-point-of-next-generation-centrifuge-market.html "Digitally projected revenue to be the unique selling point of Next Generation Centrifuge Market") also facilitate accounting. In addition to multi-currency, the software that eCommerce retailers are using should also be able to support the sales tax regulations and [keys demanded](https://www.financedigest.com/sodium-tetraborate-market-key-players-end-user-demand-and-consumption-by-2030.html "Sodium Tetraborate Market Key Players, End User, Demand and Consumption by 2030") by different countries. Debtor [management should process the tax codes of all countries](https://www.financedigest.com/energy-management-system-market-2021-by-global-key-players-types-applications-countries-industry-size-and-forecast-to-2025.html "Energy Management System Market 2021 by Global Key Players, Types, Applications, Countries, Industry Size and Forecast to 2025") in which the retailer operates, or is likely to operate in the future, to ensure the correct posting of all sales, including those that are cross-border. One final point – to help with [management of accounting documents](https://www.financedigest.com/document-management-software-market-to-expand-at-a-value-cagr-of-12-3.html "Document Management Software Market to expand at a value CAGR of 12.3%"), it is useful to have just one single file which can be transferred directly into the general ledger or transferred to the tax consultant. Not only does this save effort and [cost for the retailer it also enables them to focus on their core business](https://www.financedigest.com/esg-prepared-why-ignoring-esg-is-a-costly-business.html "ESG Prepared: Why Ignoring ESG is a Costly Business") without being distracted by complex accounting procedures. Armed with an efficient, fuss-free [payment and accounts receivable solution in the back-office will give eCommerce retailers the infrastructure they need to keep](https://www.financedigest.com/the-late-payments-toolkit-how-to-keep-the-cash-flow-strong.html "THE LATE PAYMENTS TOOLKIT – HOW TO KEEP THE CASH-FLOW STRONG") processes lean, cash flowing, and customers happy while they build their business. --- This blog is powered by Superblog. Visit https://superblog.ai to know more. ---