Property management companies face a myriad of challenges when it comes to payments processing, including manual processes, high transaction volumes, significant check printing costs, and complexity surrounding the number of banks and bank accounts they partner with.
In light of these challenges, property management companies have much to gain by outsourcing their payments processing to a provider who can execute payments from multiple banks and accounts including having payments executed at the account level without any comingling of funds.
An outsourced solution provider can take on the burden of executing payments, offering a variety of approval processes to meet the company’s needs and provide comfort in the way payments are executed. Payments can be executed via check or moved to electronic payment methods – including ACH and virtual cards. An outsourced provider should offer a comprehensive vendor enrollment program and team that can contact vendors and convert them to accepting electronic payments. Property management companies who migrate to electronic payments can reduce costs and even eliminate payment processing costs altogether if they migrate a portion of the payments to virtual cards. Remittance details for all payments, whether they are made by check, ACH or virtual card can also be delivered via email or downloaded from a portal.
In addition, payments can be executed at a next business day service level, providing the timeliness which can be a challenge for many property management companies. For added security, positive pay files can be initiated to the relevant banks.
Other benefits include competitive rebates which can be used to offset the cost of other projects and initiatives, as well as the ability to print checks locally or make payments locally. Property management companies should look to providers who have already developed interfaces with a number of ERP systems, giving property management companies increased visibility over their accounting package.
As well as benefiting property management companies themselves, payment solutions should also provide benefits for those companies’ customers. For example, a vendor portal can allow property management companies to offer their vendors a payment preference, as well as providing a detailed archive of all payments made and details of individual invoices. There should be an opt in rather than an opt out approach – giving vendors an active choice about whether they want to accept ACH or virtual card electronic payments.
All too often the particular requirements of property management companies lead to inefficient banking structures and payments processes. However, with the right solution in place, companies can overcome these hurdles and achieve significant cost and efficiency benefits – as well as provide a positive experience to their own vendors.
Learn how FIS’ global payments portfolio empowers you to deliver a truly differentiated, frictionless payment experience to your customers in real time.Contact us