As the Managing Director for ACH Network Development at NACHA (and Elevation), my team and I often have the opportunity to get out into the field to talk and collaborate with businesses of all sizes. The dialogue often includes topics such as supply chain management, minimizing days outstanding, credit risk, financial reporting and reconciliation, among others. The typical metrics used to measure success include efficiency, cost reduction, and minimizing losses.
It’s impressive to hear the great depth of knowledge that treasurers and finance professionals have about day-to-day processes in their businesses. However, the one area that surprises me is around payment cost. When asked about the business’s all-in cost of payments many are unsure of what that amount is - or fail to agree on how it should be measured.
Whether looking at incoming or outgoing payments it can be very empowering for a business to know what the all-in payments-related costs are to better understand options for improvement. Bank or service fees are only one aspect of cost and there are many other factors that contribute to the overall amount. Investing in specific payment types can improve a company’s bottom line especially for businesses with higher volumes of payments. Elevation, NACHA’s consulting group, developed a simple-to-use calculator to illustrate the effects payment cost may be having on your company’s bottom line. You should check it out: https://elevation.nacha.org/