Covid-19 has changed the way many businesses operate. In the last 18 months the food distribution industry has changed dramatically. The way distributors worked pre-pandemic to the way they work now is much different.
One area that has changed more than most is the way distribution businesses receive payments. Pre-Covid, many distribution businesses were contempt with the traditional cash and eftpos payment process; however, it is a much different story today.
In 2021 many distributors have transitioned to automatic credit card payments.
So, what is driving the transition to automatic credit card payments?
When it comes to making a change to a process, the food distribution industry lags compared to other industries. For a long time, many distributors had the belief of if it’s not broke don’t fix it. But in the current market that simply doesn’t cut it.
One of the biggest reasons why distribution businesses are transitioning to credit card payments is due to the long wait times of traditional payments. It has been reported that the food industry waits 28 days on average for an invoice to be paid. Distributors simply can’t afford that wait time anymore.
For food vendors and distributors, EasyVend provides you with a completely automated payment solution from invoicing to receipting.
In EasyVend the following processes are automated:
- Customer invoices are generated and sent automatically at the correct interval
- The payment is taken automatically at the agreed time
- The payment is automatically allocated and receipted to the correct invoice
- Complex discounts, rebate structures, multiple price levels and price adjustments.
EasyVend Web ensures you get paid on time, every time.
But did you know, there are even more benefits that automated credit card payments have for your business?
Let’s take a look at them:
Save time
How long do you spend chasing payments from customers? What about the time spent manually allocating cash, cheque, or EFTPOS payments to different invoices? These tasks aren’t fun, they waste time and create errors.
The benefit of automatic credit card payments is payments are automatically taken at the correct time and allocated to the correct invoice automatically. This gives you so much more time to focus on the other important parts of your business.
Secure payments
One of the biggest frustrations in any business is learning a payment is fraudulent. Credit cards offer the ultimate fraud protection service – that cannot be replicated by traditional payment methods.
With customer transactions going through a Payment Gateway software, the system automatically audits requests upon submission. It then verifies card validation, address verification and all other requirements needed to be approved – reducing your risk of fraudulent transactions.
Quick payment processing
When it comes to payment processing, credit card transactions are second to none. It can be annoying waiting for a payment to hit your account. Traditional payment methods can make 3-5 days on average before payment is received. If your business is in a tight cashflow situation it could severely impact your operations.
On the flip side an automatic credit card payment system processes funds into your account within one business day on average. The quicker payment hits your account the better your business will be.
Centralised payment system
You can see all incoming and outgoing payments on one credit card statement. This makes it so much easier for your record keeping and bookkeeping.
A centralised system will save your bookkeep time – ultimately lowering your fees. An added benefit of using a is you can integrate your credit card payments with Xero – meaning payments will link instantly upon submission!
About EasyVend
For food vendors and distributors, EasyVend supports and automates every part of your business, freeing you up to grow your sales unlike other ERP systems that are designed more for wholesale suppliers than for distribution businesses like yours.
EasyVend includes all your everyday needs like Inventory Management, Online Ordering, Invoicing, Receipting, Route Management, Payment Gateway, Customer Reminders, Xero Integration and so much more.
EasyVend can help you with a raft of customised solutions to give your business the competitive edge it needs. For a free no-obligation demo of EasyVend contact us today on 1300 473 744 or submit the form below.
The Role of Credit Card Payments in Improving Cash Flow
In the fast-paced food and beverage industry, steady cash flow is essential. Delayed payments can disrupt operations and limit growth. Credit card facility solves this by providing fast, reliable, and automated transactions. Instead of waiting weeks for invoices, funds are processed instantly and received within a business day.
With every transaction recorded digitally, businesses gain clear visibility into revenue and receivables. It makes it easier to forecast cash needs. Credit card systems also reduce bad debt and human error and ensure financial consistency. With an integrated merchant services card setup, your customers can pay securely and automatically through an approved gateway. It keeps your operations smooth and uninterrupted.
Why Businesses Use Credit Card Payments for Security
The advantages of credit card systems extend beyond convenience. Security is vital in the food and beverage industry, where high transaction volumes make fraud prevention essential. Credit card payments offer stronger protection than manual or EFTPOS methods. Each transaction passes through a secure gateway that
- Verifies customer details
- Detects suspicious activity
- Authorises legitimate payments
With built-in fraud prevention and chargeback options, using personal credit card for business safeguards both funds and customers. Systems like EasyVend use encrypted, compliant technology to keep sensitive data protected, ensuring peace of mind and building customer trust.
FAQs
A business uses a credit card to streamline payments and manage expenses efficiently. Credit cards help cover operational costs, handle emergencies, and improve credit history. For distributors, it also simplifies recurring transactions and ensures suppliers are paid on time.
Businesses charge a small fee for credit card transactions to offset merchant processing costs. These fees come from payment gateways or banks that handle card transactions. By charging a small percentage, businesses recover part of the cost while still offering customers the convenience of secure, instant payments.
The 2-3-4 rule is a guideline used by credit card issuers to limit how frequently new credit cards can be applied for. It means two cards every two months, three in a six-month period, and four in a year. For businesses, following this rule helps maintain a strong credit score and manage financial exposure effectively.
Wealthy individuals and businesses use credit instead of debit because it provides added benefits such as fraud protection, cash flow flexibility, and reward programs. Using credit also helps build a stronger financial profile and keeps cash reserves untouched for investment or operational needs.