Manual Payments Cost More Than You Think

When making business-to-business (B2B) payments, companies often have to deal with inefficient, error-prone and costly file-based ACH processes and paper checks, which can delay payments and strain partner relationships.

Money Movement Challenges

Traditional file-based ACH processes are often inefficient and time-consuming. These inefficiencies can weaken relationships with partners, negatively impact reconciliation and cash flow, while increasing overall payment processing costs.

Time-Consuming ACH Files

File-based ACH payments and paper checks are time-consuming and error-prone processes. Manual data entry and file validation can lead to errors and delays, increasing the risk of payment failure and impacting cash flow.

Limited Tracking and Visibility

ACH files and paper checks offer limited tracking and visibility into the payment process. Once a file is submitted to the financial institution, it can be challenging for a business to determine if payments have been processed, received by the recipient or if any errors or exceptions have occurred.

Lack of Instant Payment Options

The batch-processing nature of ACH and the manual processes of paper checks mean payments can take up to several days to clear, which can negatively impact cash flow and reconciliation.

“What’s unique about Dwolla is their stronghold on ACH. And for business payments, ACH transactions for an invoice is usually more preferable. Dwolla helps us initiate ACH transfers which is huge in the B2B community. Paying out someone has to be timely and prompt. With Dwolla and leveraging the ACH Network, we have the ability to be relevant in this market.”

B2B Payment Fintech CompanyCEO/Co Founder

Time and Cost Savings Through Automation

Payment automation through Dwolla can eliminate human error, reduce labor costs and accelerate payment processing times.

Streamlining the payment process and reducing costs helps businesses improve their financial efficiency and optimize their cash flow.

Dwolla’s API-based solution helps automate many ACH manual processes, such as file creation, validation and submission, and returns and error handling.

Increased Data Visibility and Payment Tracking

Dwolla gives businesses access to real-time information about the status of their payments. This increased visibility helps businesses to reconcile accounts more efficiently, identify and resolve issues promptly and improve cash flow forecasting.

Webhooks help with cash flow and payment predictability by providing real-time payment information and notifications, including when payments run into issues.
Correlation IDs track payments end to end, connect payments initiated through Dwolla to payment information in other systems and can be used to automatically close out open accounts receivable.

Increased Data Visibility and Payment Tracking

Access to Instant Payments

Through Dwolla, businesses can take advantage of instant transfers, enabling them to send funds faster, improve cash flow and accelerate the payment cycle. Instant payments can also enhance their operational efficiency, reduce working capital needs and strengthen their relationships with suppliers and vendors.

Dwolla is connected to both the RTP® network and the FedNow® Service for real-time payment processing, and Dwolla’s API orchestrates payments between those two networks based on account coverage.

How B2B Payment Automation Works: Moving the Money

Businesses Paying Vendors

A hospital pays a medical supply company for supplies.

Manufacturer Paying a Supplier

A supplier sends an invoice to a manufacturing company for a shipment of raw materials.

Factoring Companies Buying and Collecting on Accounts Receivable

A long-haul transportation trucking company sells its freight invoices to a factoring company, and the factoring company collects on those invoices when they’re due.

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Streamline Your B2B Payments

Manual Payments Cost More Than You Think

The Benefits of Automating B2B Payments

Time and Cost Savings Through Automation

Increased Data Visibility and Payment Tracking

Access to Instant Payments

How B2B Payment Automation Works: Moving the Money

Automate your payments in as little as ten days.

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