Collecting payments efficiently and securely is the need of the hour for managed service providers (MSP) and IT partners. 

A quick test. Do you spend infinite hours collecting and managing payments from your customers? Are you struggling to reconcile your transactions accurately and periodically? 

Is smooth cash flow a myth for your MSP business?

If yes, you’re at the right place. 

Today, we’ll cover common MSP payment challenges and how you can resolve them. 

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High transaction fees + other charges

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One of the biggest payment challenges faced by MSPs is the expenses related to collecting and processing payments.

Some common payment expenses include:

• Transaction fees
• Chargeback
• Onboarding fee
• Monthly platform fee

While you’ll have to pay transaction and chargeback fees with all payment platforms, the onboarding and monthly platform fees are avoidable. There are certain payment solutions, like Zomentum Payments, which don’t charge an onboarding or monthly platform fee. 

Next, go for a payment platform that charges a low transaction and chargeback fee. 

This way, you can solve the problem of high transaction fees and other charges. 

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Payment security challenges

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The next major challenge related to MSP payments is security. With instances of financial fraud on the rise, MSPs need to be extra vigilant about the payment practices they adopt. 

If the personal and financial information of your customers gets compromised, it can badly hurt your business reputation. 

The solution to this problem is to use secure payment platforms. Look for security features like PCI DSS compliance and SSL certification to ensure your business and customers' information is in safe hands. 

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Lack of supported payment options

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The next major hurdle MSPs face in collecting payments is the lack of supported payment options. Some clients prefer paying through ACH transfers, whereas others prefer cards. 

It’s crucial to use a payment provider that supports various payment methods. 

For instance, Zomentum Payments allows you to collect payments done through ACH transfers, wire transfers, BACS direct debit, and cards like Visa, MasterCard, and Amex. 

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Inaccurate reconciliation leading to errors

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Inaccurate reconciliation refers to the difference between the records in the books or accounting software and the actual cash you have. This primarily occurs due to human error, as many MSPs perform manual reconciliation. 

You can resolve this problem by automating the reconciliation process. Zomentum Payments comes with automatic accounting reconciliation, which increases payment visibility and reduces the risk of discrepancies. 

Furthermore, you get real-time payment tracking and reporting capabilities to always stay on top of your payments. 

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Delayed payments

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Late payments are a common problem faced by many managed service providers. It can lead to cash flow issues and affect your accounts payable and receivable. 

To solve this problem, establish clear payment terms with clients. Decide on a fixed date to process payments. And it’s even better if you automate the payment process by setting up recurring payments. 

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Difficulty in collecting recurring payments

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We discussed recurring payments in the previous point. But how do you set up and collect recurring payments? 

Here’s where choosing the right payment platform becomes critical. Zomentum Payments allows you to create recurring payment cycles to reduce payment delays and ensure consistent cash flow. 

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Zomentum Payments to the rescue

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It’s common for MSPs to face the payment challenges discussed above. But most of these challenges can be easily solved with the help of an effective payment platform.

Here’s where Zomentum Payments comes into the picture. 

Zomentum Payments is a complete payment solution built exclusively for MSPs and IT partners. It helps you solve common payment problems, like costly manual processes, human errors, time-intensive payment management, and cash flow challenges, 

Here’s why every MSP needs to use Zomentum Payments:

• Set up recurring payments
• Collect upfront payments
• Automatic reconciliation with accounting software
• Timely automatic payouts thrice a week
• Automated payment reminders
• Dedicated customer portal

Get started with Zomentum Payments

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