As we approach Black Friday and Cyber Monday, a period known for spikes in online consumer sales, many B2B companies are also preparing for a surge in their digital transactions.
But with increased transaction volumes comes increased risks including fraud, chargebacks, and human error. Businesses looking to manage disputes and protect cash flow without impacting customer relationships can benefit significantly from automated AR solutions. Platforms that offer payment tracking, dispute management, and streamlined workflows enable AR teams to focus on strategic tasks instead of getting bogged down in manual processes, while keeping their business safe and secure.
In this blog post, we’ll dive into modern AR platforms, and explore why AR automation is crucial to ease the workload for AR teams during this busy season.
B2B challenges during sales spikes
Everyone knows that increased sales are good for business. But did you know that these increases come with their own set of risks? When sales spike, there is also a corresponding increase in fraud, chargebacks, and disputes - all of which can be extremely damaging.
High transaction volumes and reduced vigilance in the ensuing chaos are a great opportunity for fraudsters to use stolen credit card information, execute account takeovers, and leverage synthetic identities to make unauthorized purchases. These incidents not only result in financial losses but can also erode customer trust and damage brand reputation.
As fraudsters enjoy their successes, businesses are left dealing with chargebacks – disputed transactions that customers reverse through their banks. Chargebacks create significant pain points for businesses, extending beyond the transaction amount itself, and often mean additional bank fees, operational overhead, and the potential loss of merchandise. An excessive chargeback rate can even jeopardize a company’s relationship with its payment processor, leading to high fees or account termination.
And then, there’s the disputes. Disputes stemming from fraud and chargebacks during Black Friday and Cyber Monday aren’t just financially taxing; they’re operationally damaging. Resolving disputes often requires lengthy investigations, all of which drain resources during one of the busiest times of the year.
All of these issues, if left unchecked, can destroy an AR Team and even an entire business.
How to reduce the risks
Businesses who adopt automated AR solutions will enjoy a lot of benefits, including:
- Fraud detection
- Chargeback avoidance
- Dispute management
- Optimized cash flow
- Ease-of-use, and
- The elimination of human errors
Let's look at each one.
Fraud detection
Many automated AR solutions can integrate with advanced fraud detection systems and flag suspicious transactions before they happen. By analyzing patterns in purchasing behavior and detecting inconsistencies such as purchases from high-risk regions or mismatched billing information, businesses are better prepared to block fraudulent transactions in real time.
Chargeback avoidance
Chargebacks caused by unauthorized transactions, delivery delays, and customer dissatisfaction are costly and more common during high-volume sales periods. Automated AR solutions can centralize dispute management and provide a clear audit trail, helping AR team members easily access transaction records, communication histories, and refund statuses.
Dispute management
Every chargeback requires AR teams to gather documentation and investigate claims – tasks that pull focus from more strategic activities like managing collections and maintaining customer relationships. When these operational struggles are taken together with the financial impact, including delayed payments, unrecoverable fees, and the potential loss of revenue, chargebacks present a serious risk to a business’ bottom line. An AR automation solution helps alleviate these struggles by streamlining dispute management with automated workflows, real-time payment tracking, and centralized data access. These tools not only reduce the manual workload but also accelerate resolution times, helping businesses maintain healthy cash flow and avoid operational disruptions.
Optimized cash flow
A reliable and efficient AR solution can have enormous positive impacts on a businesses’ cash flow. Experiences that offer automated follow-ups for invoice payments and customized approval processes can help regulate and optimize a company’s bottom line.
Ease of use
During high-pressure sales seasons like Black Friday, efficiency isn’t just about speed – it’s also about ease of use. Automated AR solutions with user-friendly interfaces empower team members to quickly process and track payments without a steep learning curve.
Human error elimination
Automated AR solutions also help prevent costly human errors. Incorrectly applied payments, duplicate charges, or erroneous invoice data can not only lead to customer dissatisfaction but also increase the risk of disputes. Automation ensures accurate, consistent payment processing and reconciliation, helping businesses maintain trust with their customers even during hectic sales periods.
Choosing an automated AR solution
Businesses looking to mitigate chargebacks, fraud, and operational inefficiencies should look to an automated AR solution. But with all the options available on the market, it can feel difficult to know which one to adopt!
Selecting your ideal AR automation solution will come down to several specific factors, such as:
- Business size (small-to-medium or enterprise)
- Budget
- Simplicity or feature-rich
- Plug-and-play or complex customization
- International currency requirements
To help you explore some of the leading AR solutions available, we’ve put together a comprehensive AR software solution review that you can explore before you make your selection.
Quadient AR could be the solution you’re looking for
Quadient AR makes AR automation simple and scalable for small to mid-sized businesses. With an integrated, end-to-end solution for companies that want to streamline their AR without complex or lengthy implementation times, Quadient AR offers a user-friendly customer portal with the ability to seamlessly integrate with many best-in-class ERPs like Microsoft Business Dynamics and Oracle NetSuite.
If you’re ready to see how Quadient's AR solution can transform your payment processes and improve your AR Team’s needs, book a demo today. We’d be happy to show you how we can help.
Jill brings over 15 years of industry experience in financial services marketing. She is a passionate and motivated digital marketing professional with extensive experience in multi-channel marketing with a proven record of driving results for growing and established financial services brands like American Express, Billtrust, Heartland Payments Systems, and CAN Capital. Jill is experienced in planning and executing integrated marketing campaigns across channels: web, content, paid media, email, influencer marketing, social, SEO, and events.