Payment security is the main concern for every organization, whether they process transactions digitally or manual paper processes. Today, online cyber attacks on businesses are on the rise, and technology is struggling to keep up. Though this may seem awful, there are different ways you can fight against payment fraud and better protect your transactions. By implementing the tools to enhance your organization’s security, you can promote your financial standings by proactively taking steps to minimize its risk.
Your business may incur insufficient fund or late payment fees, and it takes time to work with your bank to correct these unauthorized payments. For enterprises that track their finances manually, fraudulent charges can go unobserved for a long time if missed during an audit. One pending fraudulent charge can cause a stream of interrupted payments, and it can take a long time to correct them. Along with this, issues such as double payments and unauthorized payments can result in major financial danger to your organization.
Payment fraud can happen in many ways; there are many digital methods used to make unauthorized payments, all of which are caused by hackers stealing data. A common type of online payment fraud, identify theft involves stealing personal data from a person or an organization. This information is then used to make payments, transfer money, or to steal additional bank information. Also, hackers can steal personal data by misleading people into entering personal or bank login information into a false website.
Many electronic payment methods have robust security features to detect and prevent fraud. Embracing an automated system that works with your current accounts can be helpful because it can alert you to fraudulent charges even before funds are taken from your accounts. Since many payment types are insured, like payments through the ACH network, this added protection goes a long way in preventing payment frauds. Make sure you choose the right AP system that fits your unique business and operational needs.
Payment automation tools enable your business to create customized portals to fit your company needs and give you greater control over your finances. With better visibility, it is easier for your AP team to check on payment status and verify bank information, which makes it simple to view unauthorized charges from an account. An automated AP system captures and records invoice data and process it against past charges. Duplicate or unauthorized invoices are flagged for AP team to review before being processed, which helps prevent your business from accidentally paying them. Real-time reports offered by the system help your business verify finances and outgoing payments for even better security protection.
Payment fraud is an expected risk for businesses that rely on technology to receive payments, process invoices, and handle funds. Investing in an automated system that can increase process security is the best solution. Robust AP software offers necessary tools to verify payments, reconcile statements, and catch duplicate or unauthorized purchases before being processed.