Online Payment Processing and Other Payment Methods Presented

Online Payment Processing and Other Payment Methods Presented by Yvette Whitson, CPA, CA (Edward, Kenny & Bray LLP) and Nancy Read, CPA, CGA (Richard Buell Sutton LLP) April 30 th, 2015

Introduction and Outline § What is meant by “Online Payment Processing”? § How do you set up an Online Payment System? § What impact has the system had on our IT/Accounting functions and procedures? § What affect the system has had on our accounts receivable/collections. § What other payment options are there available to our client?

Online Payment Processing § Online payment processing is the ability for our clients to pay their legal invoices with a credit card via the firms website § You can set up this process using a merchant service provider. This can be through your financial institution or through an independent merchant provider § Shop around and review the terms of the agreement and negotiate a good interest rate. The market is very competitive.

Merchant Service Providers § Are they local? Where is their server maintained? § What level of data protection do they provide? § What services do they provide? § What are their fees and hidden costs? § When do the funds reach your account?

Beanstream § Edwards, Kenny & Bray used Beanstream, which is connected with TD Merchant Services § PCI Level 1 Certified Service Provider § Credit card fees range between 2. 5% & 2. 8% depending on which credit cards are used. Monthly service charge of $35. 00, monthly PCI Security Fee of $9. 95 and a batch transaction of $0. 25 per batch. § Log into your account, set up key account information, passwords and permissions. Create users, email receipts, settings and configurations § Chose your Online Mart Processing System Ø Ø Basic Hosted Payment Form Hosted Shopping Cart Customer Payment Accounts (Payment Profiles) Custom Applications § Test your system

Beanstream

IT Involvement § After testing, your service provider will set up a unique URL for account. § With the services of your website designer or IT manager, your unique URL can be added to your website quite easily.

Edwards, Kenny & Bray LLP

Edwards, Kenny & Bray LLP

Richards Buell Sutton LLP

Richards Buell Sutton LLP

Richards Buell Sutton LLP

Benefits of Online Payment Processing § Increased efficiency as the payment is immediate (depending of service provider) § It is a good negotiating tactic § No concerns regarding NSF or lost mail § Improved client services

Costs of the Service § Obviously every provider is different Ø Ø Ø Qualified versus Non-Qualified Visa versus Mastercard Card Brand § Web based software is comparable to desk top based software or phone in systems § Negotiate your rates based on volume, client relationship, funding period etc. Remember to read the fine print

Sample Cost of one Credit Card Payment

Effect on Accounts Receivable § More clients are paying with their credit cards than ever before § Payments are received faster. Cashflow is improved. § Reduction is administrative costs § Payment plan options § Interest waived if payment received immediately § Increase in bank fees

Other Payment Options § Online Banking Bill Payment option Ø Similar to paying your utility bill Ø Every client needs to set up an account (use client number) Ø Clients can pay directly through their online banking system

Online Banking - Payee Setup

Online Banking – Payee Setup

Other Payment Options Ø Contact your bank to arrange this service Ø Individual set up cost per bank/credit union may apply Ø Some charge monthly fees, some don’t Ø Can take 6 -8 weeks to set up Ø No transaction cost to you or client Ø Lower cost than credit cards Ø Immediate guaranteed funds

Other Payment Options § Direct Deposits Client can make payment directly into your bank account if they have your bank account details Ø This is not preferred over other methods, as it can be difficult to identify where the funds originated. Ø § EFT Payment Preferred method of payment No cost to us at all Client request your bank account details. No further action is required at your end. Ø Remittance advice forms are generally sent in advance of payment Ø Typically only larger firms are utilizing this system at present Ø Ø Ø

Questions Contact – Yvette Whitson (ywhitson@ekb. com) Contact – Nancy Read (nread@rbs. ca)