Augmented payments:
Delivering Businesses the Data
that Counts

Learn more about Traxpay Augmented Payments

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Is Missing Data Killing Your Business?

History teaches us that age-old problems are often solved by innovative new technologies. And yet, even as our world welcomes advances that would have been unimaginable just a few decades ago, businesses remain hamstrung by a lack of transformative tech when it comes to the simple act of paying one another.

Today, research shows that a huge volume of B2B payments cannot be successfully completed without human intervention. No matter what size your business, you probably have personal experience with the problem: Do disparities between purchase orders, invoices and payments leave you or your AR staff intervening time and again to solve payment problems manually?

The majority of businesses answer “yes” to that question. At the heart of the problem is data – or rather, the lack of it available via traditional transaction methods. Without a system that can automatically adapt to the complex and frequently changing data connected to B2B payments, businesses are destined to go on losing time and money.

Companies spend a small fortune in manual invoice handling, with the impact felt by both buyers and suppliers. Does this financial outlay, combined with the cost in manpower and muddied relationships with trading partners, leave you longing for a solution built around today’s sophisticated technology? If so, you’re still definitely in the majority.

Delivering Businesses the Data that Counts

In our connected digital age, the consumer experience has never been so seamless or so simple. And yet, as highlighted above, the automation we rely on in everyday life remains agonizingly absent for businesses when it comes to the payment process.

While other aspects of business have already been optimized, missing or inadequate remittance data, mountains of paperwork, and constant manual intervention costs enterprises precious time and money, with no apparent solution in sight.

As suppliers struggle to automatically match payments, and buyers become burdened with spiraling Accounts Receivables costs and limited cash flow visibility, the existing methods for communicating key transaction data become more glaringly inadequate. In Europe, for example, the introduction of the SEPA standard still limits remittance information to just 140 characters.

Living with
the Problem

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For too long, businesses have been left to use workarounds in the face of flawed data exchange and payment systems. But these workarounds, by definition, fall short of providing a genuine solution.

  • Paper documents incur postage and handling costs and demand manual (and often error prone) intervention.
  • Electronic Advice Documents address some of the problems of missing data, but lack the widespread adoption needed to make them a viable solution.
  • Valuable data stored on a buyer’s ERP system becomes of little or no value to suppliers.
  • Accounts Receivable staff are left to unravel invoices grouped into one payment – all or part of which may be eligible for a discount.
  • Enterprise Resource Planning (ERP) systems and bank statement interpreters remain bound by the 140-character limit inherent in the account statement, limiting the value of their logic auto-matching capabilities. These existing “solutions” only underscore the shortcomings of interbank payment systems, and the negative knock-on effects are severe.
  • Manual intervention costs an estimated seven times more than automatic reconciliation.
  • Incoming credit isn’t “good” until all the connected.
  • Payment problems are resolved.

MAKE TRAXPAY AUGMENTED PAYMENTS WORK FOR YOU

How Does it Work?

When businesses running the Traxpay ERP Plugin make a SEPA or cross-border payment, the system creates an enriched ISO 20022 file that contains all the invoice information and line-item detail contained in the Financial Accounting and Materials Management modules. The payment file is created and then sent to the buyer’s bank in the required bank format before being approved by the buyer and credited to the supplier.

Cross-border payments can be made in any currency that the partner bank supports, and alongside payment suppliers will receive the all-important – and normally absent – transaction data in their format of choice. Service users also have the option of allowing Traxpay to handle the monitoring of all activity over a dedicated account and providing status updates to the relevant parties. These updates are shown in a dashboard (see screenshot below) depicting the progress of the payment, and an indicative prediction of payment run timings will be given based on country, payment scheme rules, and other key factors. Exception events such as a delay in approval by the buyer, a returned payment, or a suspicious transaction, will generate alerts.

All communication with the bank, for submission of payment files and optional monitoring of transaction

status, is based on approved standards such as EBICS, which means security, authentication, and approvals are all handled according to the highest possible requirements. Traxpay can easily add support for new regions and finance formats based on the needs of users. Examples of currently supported formats: CGI ISO20022 PAIN formats, PAIN.001 and PAIN.008 for SEPA together with relevant advice formats, ISO2022 CAMT.52 and CAMT.53, and NACHA for the US. Both buyers and suppliers can have total peace of mind in the knowledge that they will be notified of any events affecting the invoice data.

The plugin can even be tailored to enable automatic reconciliation in complex situations that involve Dynamic Discounting or Supply Chain Financing. So if the payment amount, date, or fi nuancing reference are altered, or if special conditions are applied, users always retain clarity and control. If a buyer wishes to use his existing arrangements with his bank for submitting and executing the payment, their suppliers can still benefi t from Traxpay’s rich data advices. At the time of the payment run, Traxpay extracts data from ERP system as normal, and makes it available to the supplier via any of the available formats.

CHANGING YOUR FUTURE, NOW

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The Traxpay B2B Payments Platform also acts as a gateway to powerful upcoming services provided by Traxpay and partner organizations. At a glance, Traxpay can enhance your business processes by empowering:

  • A wide range of electronic payment methods and value-added services.
  • Supply Chain Financing, Factoring, Dynamic Discounting, smarter escrow services, and more.
  • Access to a central hub that empowers easy integration with third-party financial services.
  • Flexible, horizontal scalable architecture for rapid deployment of new tools.

Why Choose Traxpay Augmented Payments?

As businesses battle against the lack of data available alongside B2B payments, choosing Traxpay Augmented Payments gives users several key advantages. Traxpay Augmented Payments finally eliminates the problems of reconciliation by:

  • Custom integration into existing ERP and Purchase-to-Pay systems.
  • Working alongside exisiting corporate processes and approval flows already in place.
  • Harmonizing with users’ existing banks.
  • Integrating the financial value chain.

Traxpay Technology

  • Traxpay’s solution is built on extensible, flexible, and modern architecture. With a robust library of APIs, Traxpay’s service is always up-to-date, compliant, and easy to integrate into existing corporate or supply chain systems.
  • Adapts to specific customer needs – down to the last detail Supports SEPA, TARGET2 and ACH ISO 20022 messaging standards.
  • Automated buyer/supplier onboarding and identity verification (KYC/AML).
  • Highly secure, ISO 27001 certified data center/private cloud used by today’s leading companies.
  • SAP-certified solution, works in concert with existing corporate workflows.
  • Provides its APIs in best practice protocols (SOAP-XML and REST).
  • Updates functionalities on the fly. Services can be added, modified, and removed at payment-processing – perfect for the dynamic nature of the business world.
  • Supports a vast range of payments-processing formats and channels out of the box, and seamlessly adds new ones.

Take Advantage Today

The core features of Traxpay’s Conditional Payments service can be utilized for a monthly fee per buyer and supplier registered on the platform. Low, variable fees are also applied on transactions. For full details of our fee structure, contact us at info@traxpay.com.

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