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Featured Case Study

How to assess payment integrations for your ERP system

Featured Case Study

Debit card fees: where credit card compliance rules don’t apply

Featured Case Study

5 things to look for when choosing the best payment processor for your business

Featured Case Study

The complete guide to reducing days sales outstanding: turn your receivables into cash flow

How to assess payment integrations for your ERP system

ERP Payment Integration Assessment Guide: How to Evaluate Partners & Reduce Costs
TL;DR: ERP payment integration shapes reconciliation accuracy, cash flow visibility, security posture, and your team’s daily workload. This guide gives you a practical framework to evaluate partners across seven critical dimensions, understand hidden costs, compare integration methods, and make a decision that scales with your business.

Your Finance Team Is Bleeding Hours. Here’s Why.

Picture this: it’s month-end close. Your finance team is toggling between your ERP, a payment portal, and a spreadsheet — manually matching transactions, hunting down discrepancies, and re-keying data that should have flowed automatically. They’ve been doing this for years. It feels normal. It isn’t.

ERP payment integration shapes reconciliation accuracy, cash flow visibility, security posture, and your team’s daily workload. When it works well, it disappears into the background. When it doesn’t, it quietly taxes every financial process in your organization.

~35% reduction in reconciliation time with well-integrated ERP payment systems

~14 hrs/month returned to finance teams spending 40 hours on manual reconciliation

25% improvement in overall financial process efficiency

Source: Deloitte, “Crunch Time: Finance in a Digital World” (2024); Institute of Finance and Management mid-market benchmarks.

These are not aspirational figures. They reflect what happens when payment data flows directly into your general ledger without human intervention. And the inverse is equally true: poor integrations — connections that break during ERP updates, data syncs that lag behind reality, exception handling that becomes manual — compound in cost over time.

That compounding effect is why the assessment process deserves real rigor. This guide gives you the framework to do it right.

Seven Factors That Separate Good Integrations from Costly Ones

1. Seamless ERP Compatibility

Your payments partner should offer a proven integration with your specific ERP and version — whether that’s NetSuite, Sage, or another platform. Look for native connectors or well-documented APIs that push payment data directly into your general ledger, accounts receivable, and accounts payable without manual rekeying.

Not all connectors are equal. Some require heavy customization that effectively turns a pre-built integration into a custom project. Ask to see the integration working in an environment close to yours, and request references using a similar configuration. Reluctance here is a meaningful signal.

2. Automated Reconciliation

This is where much of the operational value lives. The integration should automatically match payments to invoices and flag exceptions — instead of forcing your team to review every transaction. Strong solutions handle partial payments, overpayments, credits, and refunds cleanly.

Straightforward matches are easy. The real test is how the system handles multi-invoice payments, split refunds, and edge cases without manual workarounds. Ask for a live demo using messy scenarios, not clean ones.

3. Security and Compliance

Any provider should meet PCI DSS requirements at minimum and support tokenization so raw card data never touches your ERP. Look for end-to-end encryption and mature fraud controls.

If you operate in a regulated industry, confirm that the provider understands your specific compliance environment and can map their controls to it. Ask about audit history and incident response practices — not just certifications. Certifications tell you what a company passed once. Practices tell you how they operate daily.

4. Industry Expertise

Payment workflows differ meaningfully across distribution, SaaS, manufacturing, and healthcare. A provider with experience in your vertical will configure faster and anticipate compliance nuances that generalists miss. Ask for case studies and references that reflect your industry and transaction patterns — not just their largest logo.

5. Payment Method Coverage

Your integration should support the payment types your customers and vendors expect: cards, ACH, bank transfers, and virtual cards. Just as important is how each method posts and reconciles inside the ERP. If adding a payment type creates manual journal entries or side processes, the integration is incomplete.

6. Real-Time Data Sync

Transaction status, confirmations, and cash position should update in your ERP as payments occur. This gives finance teams accurate visibility and allows support teams to answer payment questions without switching systems or waiting for batch jobs.

Ask specifically: is this real-time, near-real-time, or batch? The difference matters more than you’d think when a customer calls asking where their payment is.

7. Scalability

Confirm that the integration can support higher transaction volumes, additional entities or subsidiaries, new payment methods, and ERP upgrades without a redesign. Ask about the provider’s largest transaction environments and whether the same architecture supports both small and large customers.

A solution that works beautifully at 500 transactions per month but buckles at 5,000 is not a scaling partner — it’s a migration waiting to happen.

The Hidden Economics of Payment Integration

Integration quality is only half the financial equation. Many organizations focus on technical fit and overlook the long-term economics of processing, which can quietly erode the value of an otherwise strong integration.

Start by mapping the full fee structure across every payment type you use: card transactions, ACH, virtual cards, cross-border payments, chargebacks, refunds, and monthly platform fees. Understand what is bundled and what is add-on. Then ask a more operational question: does reconciliation reporting clearly separate gross amounts, fees, and net deposits inside the ERP? If fees are hard to map and reconcile, your team will spend time manually rebuilding what the integration should have delivered automatically.

Ask every provider: “Can you model my real costs using our actual processing mix and average ticket size, and show me how fees flow through ERP reporting?”

A partner who can do this demonstrates both transparency and maturity. The cheapest headline rate is not always the lowest operational cost once exceptions, support, and reconciliation effort are factored in.

The less visible costs

Also consider the less visible costs. What does it cost to add a new payment method later? What are the fees around failed payments and retries? Is there a separate charge for multi-entity or multi-currency support? These line items rarely appear in initial proposals, but they shape the total cost of ownership over a three-to-five-year horizon.

  • ▸Cost to add a new payment method later
  • ▸Fees around failed payments and retries
  • ▸Separate charges for multi-entity or multi-currency support
  • ▸Exception handling and support costs over time

Integration Methods: A Side-by-Side Comparison

Payment providers typically connect to ERPs through one of three methods, each with distinct tradeoffs in speed, flexibility, and maintenance burden.

Method Speed Flexibility Maintenance Best For
Native Connectors Fastest Limited Low Standard workflows, common ERP configs
Custom API Slowest Maximum High Unique workflows, heavy customization needs
Middleware / iPaaS Moderate Moderate Medium Balancing speed and flexibility

Strong partners can support more than one method and guide you toward the right fit based on your environment and resources. If a provider only offers one path, make sure it’s the right one for your team — not just the easiest one for them.

The Questions That Actually Matter

A solid evaluation goes beyond feature lists. It tests how the provider actually operates. Here are the questions that will separate strong partners from polished pitches:

1. Do you have a proven connector or API for our exact ERP version? Show us — in documentation, a demo, or references.

2. What is the realistic implementation timeline, and what internal effort will our team need to commit?

3. Walk us through how exceptions, refunds, failed payments, and chargebacks are handled in practice — not in theory.

4. What does your support model look like during and after launch? What are your response time SLAs?

5.When our ERP version upgrades, who maintains compatibility? What’s the typical lag?

6.Can we speak with reference customers who have similar volumes, configurations, and industry complexity?

7.What surprised your existing customers during implementation, and what would they change?

Scoring Framework: Compare Providers Objectively

Subjective impressions and slick demos can mislead. To compare options consistently, score each provider across seven dimensions. Assign weights based on your priorities — compatibility and automation carry the most weight for most organizations, while high-growth companies may weight scalability more heavily, and regulated businesses may weight security highest.

Rate each provider on a 1–5 scale per dimension, multiply by your chosen weight, and compare totals.

Dimension What to Test Weight Score (1–5)
ERP Compatibility Proven connector for your exact ERP version; native data flow into GL, AR, AP High
Reconciliation Automation Auto-matching payments to invoices; handling of partials, overpayments, split refunds High
Security & Compliance PCI DSS, tokenization, encryption, fraud controls, audit history, incident response High (regulated)
Total Cost & Fees Full fee structure across all payment types; clear gross/fees/net separation in ERP Medium–High
Payment Method Coverage Cards, ACH, bank transfers, virtual cards; each posts and reconciles natively in ERP Medium
Real-Time Data Sync Status and confirmations update as payments occur; no batch lag Medium
Scalability Higher volumes, additional entities, new methods, ERP upgrades without redesign Medium–High

Using a defined scoring model turns vendor selection from a subjective debate into a structured decision. It also creates an artifact you can reference later if stakeholders question the choice.

Making the Decision

Choosing a payment integration partner is a decision you will live with for years. Before you sign:

  • ✓Run a proof of concept using your real workflows and data — not sample scenarios.
  • ✓Speak with reference customers and ask direct questions about delays, breakpoints, and support quality.
  • ✓Favor partners who demonstrate deep ERP integration expertise alongside payment capability.
  • ✓Require clear explanations of both technical behavior and economic impact.

Organizations that get this right do more than process payments efficiently. They shorten close cycles, improve cash flow management, and build a finance operation that can keep pace with growth.

The integration you choose today becomes the financial infrastructure you operate on tomorrow. Make it count.

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Disclaimer: The information in this article is intended as a general guide for evaluating ERP payment integrations. Specific capabilities, costs, and timelines vary by provider, ERP platform, and business configuration. Always conduct your own due diligence and consult with your IT and finance teams before making integration decisions. Statistics cited are based on industry research and may vary by organization size and complexity.

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Debit Card Fee

Debit card fees: where credit card compliance rules don’t apply

debit-card-fees
Debit card fees: where credit card compliance rules don’t apply
TL;DR: Debit card transactions cannot be surcharged under any circumstances in the U.S., even when processed on credit rails. Most violations happen through system configuration errors, not intentional policy. Network audits often uncover violations months after implementation, requiring refunds to all affected cardholders. This guide explains why it happens, what it costs, and how to verify compliance now.

Card payments are no longer a competitive advantage—they’re infrastructure. And like most infrastructure, they tend to fade into the background once they’re working.

That’s precisely why debit card compliance remains one of the most common, and costly, blind spots in modern payment operations. Debit sits at an uncomfortable intersection of pricing strategy, network rules, and consumer protection. It looks simple at checkout, but it’s governed by rules that are far less forgiving than many businesses realize.

For finance leaders managing margin pressure and controllers responsible for regulatory adherence, the result is often the same: policies and systems that appear compliant on the surface, but quietly fall out of alignment at the transaction level. Unlike many compliance failures, this one rarely shows up at launch. It emerges later, through network audits, partner reviews, or acquirer inquiries, when exposure has already accumulated and remediation becomes unavoidable.

In this post, we’ll examine why debit card compliance continues to trip up otherwise disciplined organizations, and what that pattern reveals about how payment systems actually behave in the real world.

The rule that hasn’t changed

Despite years of innovation in payments, one principle has remained consistent across U.S. card networks:

Debit card transactions may not be surcharged.

This applies regardless of how the transaction is processed, whether it’s PIN-based, signature, keyed entry, or via a mobile wallet. Even when a debit card runs on credit rails, its classification does not change. From the network’s perspective, a debit card is always a debit card.

What makes this rule particularly unforgiving is that intent doesn’t matter. A general “card fee” or “non-cash adjustment” applied at checkout is still non-compliant if it affects debit transactions, even if the business’s stated goal is only to recover credit card costs.

Most violations don’t stem from deliberate policy decisions. They come from systems that apply fees broadly unless they are explicitly configured not to.

How violations actually happen

Consider a mid-sized retailer that introduces a 3% non-cash adjustment to offset rising interchange costs. Finance signs off. Implementation happens through the payment platform. Within weeks, the fee is live across all locations.

Transactions process smoothly. Customers don’t complain.

Three months later, a network compliance inquiry arrives. The system applied the fee to both credit and debit cards, and no one verified card-level logic before going live.

This is how most debit compliance issues emerge, not through edge cases or bad actors, but through perfectly functional systems behaving exactly as designed.

Why debit cards are treated differently

At checkout, debit and credit cards may look nearly identical. Operationally and legally, they are not.

Debit transactions draw funds directly from a customer’s bank account. Settlement is faster, fraud exposure is lower, and interchange rates are typically smaller. These transactions are also governed by Regulation E, which provides additional consumer protections.

Credit cards operate on a different economic model. They extend short-term credit, involve more intermediaries, and carry higher interchange to reflect greater risk and complexity. That distinction is why credit card surcharging is permitted in much of the U.S. and why debit surcharging is not.

Seen this way, debit rules aren’t arbitrary. They reflect how money moves, where risk resides, and how consumer protections are enforced.

Why compliance issues surface late

Debit surcharge violations are easy to miss because they rarely trigger immediate failure.

Debit transactions don’t decline. Networks don’t issue real-time warnings. Receipts often look identical unless you’re reviewing line-item detail. As a result, issues tend to surface only during audits, partner reviews, or network inquiries, often months after the first non-compliant transaction.

By then, exposure can be material.

When violations are identified, remediation is rarely optional. Networks typically require refunds to every affected cardholder, which can mean issuing thousands of micro-refunds across historical transactions. In repeated or systemic cases, merchants have even faced temporary suspension of card acceptance privileges.

Debit card must be excluded from surcharging

While credit card surcharging is permitted in most U.S. jurisdictions, it operates within a tightly defined framework. Network registration, disclosure requirements, brand-level application, and strict caps all exist to limit consumer confusion.

Crucially, debit cards (including prepaid and gift cards) must always be excluded, even when processed on credit rails. That single requirement introduces operational complexity many businesses underestimate, particularly as they scale across locations, platforms, and integrations.

Why cash discounting has gained traction

Cash discounting and dual-pricing models have emerged as alternatives to surcharging, though they carry their own trade-offs.

Rather than penalizing a payment method, these approaches reward one. The posted price remains consistent, and a clearly disclosed discount applies when cash is used. Debit and credit cards are treated uniformly, reducing the risk of inadvertently singling out debit transactions.

That said, dual-pricing introduces operational complexity. Pricing must be clearly communicated at point of sale. Staff training becomes critical to avoid customer confusion. Some jurisdictions impose additional disclosure requirements, and careful accounting is required to ensure discounts are properly recorded.

For businesses willing to manage these requirements, dual-pricing can offer more flexibility than surcharging, but it still requires deliberate design and ongoing governance.

Three things to verify now

Compliance isn’t a one-time configuration. It’s an ongoing condition that needs periodic verification, especially as systems, integrations, and pricing strategies evolve.

If your business applies any form of card-related fee or pricing adjustment, three checks are worth conducting now:

1. Verify debit transactions are fee-free

Pull a sample of recent debit transactions across multiple days and locations. Review line-item detail to confirm no surcharge, service fee, or non-cash adjustment appears. If your reporting doesn’t clearly distinguish debit from credit, that’s a visibility gap you can’t afford.

2. Test every payment flow with a debit card

Run real debit transactions across all environments where fees apply: in-store, e-commerce, mobile ordering, recurring billing. Compare receipts against identical credit card transactions. Any discrepancy in fee treatment indicates a configuration issue that needs immediate attention.

3. Confirm debit exclusions in platform settings

Most modern payment systems allow debit exclusions, but they’re not always enabled by default. Work with your payment provider or internal teams to confirm card-type detection is functioning correctly and applied consistently across all channels, especially after migrations, integrations, or processor changes.

If any inconsistencies surface, treat them as an operational priority. Debit compliance issues don’t resolve themselves, and exposure grows with every transaction.

The takeaway

Debit card compliance isn’t about memorizing rules. It’s about ensuring your pricing strategy and payment systems consistently reflect them as your business grows.

Companies that treat payments as governed infrastructure are far better positioned to scale without accumulating hidden risk. In an environment where compliance gaps surface slowly but carry real consequences, periodic verification isn’t overhead. It’s due diligence.

Not yet a Skyline Payments customer and want to learn more?

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Disclaimer: The information in this article is current as of January 2026 and based on U.S. card network rules and federal regulations governing debit card transactions. Payment processing rules and regulations may vary by jurisdiction and can change. Always consult with your payment processor, legal counsel, and compliance advisors for guidance specific to your business. This article does not constitute legal or financial advice.

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5 things to look for when choosing the best payment processor for your business

Choosing the Best Payment Processor
Selecting the right payment processor can make or break cash flow for small and mid-sized businesses (SMB) that rely on invoiced payments rather than in-person sales. Unlike retail transactions, invoice payments often involve larger amounts, longer payment cycles, and higher processing fees—challenges that generic payment solutions aren’t built to handle.

The best payment processor does more than move money—it integrates with your accounting systems, reduces administrative work, and helps you get paid faster. Here are five critical factors every SMB should evaluate before choosing a B2B payment processor.

1
Seamless integration with your existing accounting system

One of the biggest pain points for SMBs is the manual work required to reconcile payments with their accounting records. The best payment processor will integrate directly with popular accounting platforms like QuickBooks and NetSuite, automatically syncing transaction data and eliminating the need for double entry.

When payments are processed, transaction details should flow automatically into your accounting system, including customer information, invoice numbers, and payment amounts. This integration not only saves hours of manual work each month but also reduces errors and provides real-time visibility into your cash flow.

Look for processors that offer:

  • ✓Native integrations with your current accounting software
  • ✓Automatic Invoice and deposit reconciliation
  • ✓Real-time synchronization of payment data
  • ✓Detailed reporting that matches your accounting needs
  • ✓Cost recovery options like credit card surcharging or cash discounting programs
Time-Saving Impact: The time saved on reconciliation can be reinvested in growing your business rather than managing administrative tasks. Many businesses report saving 8-15 hours monthly when switching from manual reconciliation to automated integration.

2
Expertise in high-volume B2B transactions

Most payment processors are designed for small retail transactions, but B2B companies often deal with invoices of $20,000, $50,000, or even higher amounts. Processing these large transactions requires specialized expertise and different risk management approaches.

The best payment processor for high-volume B2B transactions will offer:

  • ✓Higher per-transaction limits without special approvals
  • ✓Understanding of B2B payment timing and cash flow patterns
  • ✓Experience working with your specific industry’s payment challenges
  • ✓Appropriate underwriting processes that don’t flag legitimate business transactions

Processors with B2B expertise understand that a $30,000 transaction from an established customer carries different risks than 300 separate $100 retail purchases. They’ll have streamlined processes for large transactions and won’t subject your funds to unnecessary holds or delays.

Red flag: Be cautious of processors that require manual approval for transactions over $10,000 or treat all high-value transactions as potentially fraudulent. This can severely impact your cash flow and customer relationships.

3
Level 3 processing capabilities

Credit card processing fees can quickly eat into profit margins, especially on large B2B transactions. Level 3 processing, also known as commercial card optimization, can significantly reduce these costs by providing additional transaction data that qualifies your payments for lower interchange rates.

Level 3 processing requires sending detailed line-item information such as product descriptions and quantities, tax amounts, and merchant tax ID. While this requires more work on the backend, the fee savings can be substantial. For large B2B transactions, Level 3 processing can reduce credit card fees by 0.5% to 1.5% per transaction, which adds up quickly on high-volume payments.

Cost Savings Insight: The best payment processor will make Level 3 processing easy by automatically pulling this data from your accounting system and formatting it properly for card networks. They should also help you identify which transactions qualify and ensure you’re maximizing your savings opportunities.

4
Tools to improve DSO and cash flow

Days Sales Outstanding (DSO) is a critical metric for B2B companies, measuring how quickly customers pay their invoices. The best payment processor won’t just process payments when they arrive—they’ll help you get paid faster and more predictably.

Look for processors that offer:

  • ✓Multiple payment options to make it easier for customers to pay
  • ✓Automated payment reminders and follow-up sequences
  • ✓Partial payment capabilities for large invoices
  • ✓Recurring payment setup for subscription or contract-based services
  • ✓Real-time payment tracking and customer communication

The right processor will also provide detailed reporting on payment patterns, helping you identify which customers consistently pay late and which payment methods result in faster collection. This data enables you to make informed decisions about credit terms and collection strategies.

Industry insight: Companies that offer multiple payment methods typically see 15-25% faster payment collection compared to those accepting only checks or single payment types.

5
Exceptional customer service and support

Payment processing issues can directly impact your cash flow and customer relationships, making reliable support absolutely critical. The best payment processor will provide knowledgeable support when you need it most.

Look for processors that offer:

  • ✓A support team that actually picks up the phone
  • ✓Dedicated account managers who understand your business
  • ✓Technical support for urgent payment issues
  • ✓Transparent fee structures without hidden costs

A payment processor that views your success as their success will go beyond basic transaction processing to help you optimize your payment workflows and improve collection rates. They should be willing to work with you to customize solutions that fit your specific industry and business model.

Making the Right Choice for Your Business

Choosing the best payment processor for your SMB requires looking beyond just processing rates and transaction fees. The right solution will integrate with your existing workflows, provide exceptional support, handle your transaction volumes professionally, optimize your processing costs, and actively help improve your cash flow.

Key Evaluation Steps:

  • →Request demonstrations that show real integration capabilities
  • →Ask about their experience with businesses similar to yours
  • →Understand exactly what support you’ll receive as a customer
  • →Evaluate how each processor addresses the five key areas outlined above

The best payment processor becomes a strategic partner in your business growth, not just a vendor that moves money around. Choose wisely, and your payment processing solution will support your business success for years to come.

Ready to take control of your payment processing costs?

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The complete guide to reducing days sales outstanding: turn your receivables into cash flow

Be Part of Something Bigger

Winning new business is important—but converting sales into cash is where sustainable growth really happens. If you’ve ever faced late invoices or cash flow hiccups, you’re not alone. The good news? With the right approach, you can take control of your receivables and keep your cash moving.

That’s where Days Sales Outstanding (DSO) comes in. It’s one of the most powerful indicators of financial health, and with a few smart strategies, you can lower it and free up working capital. In this guide, we’ll explore actionable strategies to reduce DSO and strengthen your company’s financial position.

What is DSO (days sales outstanding)?

Days sales outstanding measures how long it takes, on average, for your company to collect payment after making a sale. It’s calculated using this formula:

DSO = (Accounts Receivable ÷ Total Credit Sales) × Number of Days

For example, if your company has $60,000 in accounts receivable and $300,000 in credit sales over a one-year period: DSO = ($60,000 ÷ $300,000) × 365  = 73 Days

This means it takes your company an average of 73 days to collect payment after making a sale.

DSO varies significantly by industry—software companies might see 30-45 days while construction companies often experience 60-90 days. However, regardless of your industry benchmark, there’s almost always room for improvement.


Why does DSO vary between industries? 

DSO varies significantly due to industry-specific factors such as the following –

Payment terms: Industries like construction have milestone-based payments, resulting in longer cycles.

Client relationships: Professional services often depend on client approvals, which can
delay payments.

Product lifecycle: Retail sectors require rapid turnover, thus incentivizing quicker
Payments.

Regulatory environment: Healthcare payments, for example, involve complex insurance processes, potentially slowing payments.


Why minimizing DSO should be a top priority

Cash flow Is king
Uncollected invoices keep your cash out of reach. Lower DSO means faster access to cash for operations, payroll, growth, and unexpected opportunities or challenges.

Lower risk & costs
Faster payments reduce bad debt, minimize costly collection efforts, and free staff for higher-value work.

Stronger customer relationships
Proactive payment processes minimize awkward collection calls and foster trust. By setting clear expectations and offering convenient payment options, businesses create a more positive and seamless experience for customers.

Better planning & competitive edge
Consistent, predictable cash flow gives you the confidence to budget accurately, plan strategically, and make faster decisions. 


How is DSO relevant to CFOs, controllers, and billing specialists?

DSO is especially relevant to financial leadership and operational roles:

CFOs use DSO to project cash flow and plan investments. When DSO is high, they lose strategic flexibility.

Controllers rely on DSO to assess AR team performance and flag financial risk.

AR Specialists need visibility into DSO so they can follow up efficiently, invoice cleanly, and escalate delays before they snowball.


Strategies to reduce your days sales outstanding

1. Strengthen your credit and customer management foundation

Implement Rigorous Credit Approval
Don’t let enthusiasm for new sales override prudent credit decisions. Establish clear credit approval processes that include:

  • Credit applications for all new customers
  • Credit checks and reference verification
  • Setting appropriate credit limits based on financial strength
  • Regular reviews of existing customer creditworthiness


Segment Your Customer Base
Not all customers are created equal. Develop different strategies for:

  • High-volume, reliable customers (offer incentives, streamlined processes)
  • New or unknown customers (shorter terms, deposits)
  • High-risk customers (COD, prepayment, or enhanced monitoring)


2. Optimize your invoice process for speed and accuracy

Eliminate Invoice Delays
Send invoices immediately upon delivery or service completion. Every day you delay invoicing is a day added to your DSO.

Ensure Invoice Accuracy
Incorrect invoices create disputes, delays, and customer frustration. Your invoices should include:

  • Clear, detailed descriptions of products or services
  • Accurate quantities, prices, and calculations
  • Purchase order references where applicable
  • Clear payment terms and due dates
  • Multiple payment method options


3. Revolutionize your payment terms and incentive structure

Offer strategic early payment discounts
A 2% discount for payment within 10 days (2/10 net 30) can significantly accelerate cash flow while still maintaining healthy margins. Calculate the annual cost of offering discounts versus the benefit of improved cash flow and determine which makes more sense financially.  

Negotiate shorter payment terms
Where market conditions allow, move from 30-day to 15-day terms, or even immediate payment for smaller transactions. This is particularly effective with new customers who haven’t yet established payment patterns.

Implement Progress Billing
For large projects or ongoing services, bill in stages or monthly rather than waiting until completion. This reduces both your risk and the customer’s payment shock.


4. Transform your collections and follow-up process

Establish Systematic Follow-up Procedures
Don’t wait until invoices are overdue to engage. Implement a structured communication schedule:

  • Friendly reminder 5 days before due date
  • Payment due notification on due date
  • First follow-up 5 days after due date


🚀 Where Skyline Payments can make the difference: We offer automated reminder systems that eliminate the manual burden of follow-ups while ensuring no customer falls through the cracks. Customers receive professionally crafted reminders via email or text, with embedded payment links for immediate action. This approach can reduce late receivables by up to 40% while freeing your staff for higher-value activities.


5. Leverage technology and automation for maximum impact

Implement Automated Reminder Systems Manual follow-ups are time-consuming and inconsistent. Automated systems ensure every customer receives timely, professional reminders without consuming staff resources.

Provide Multiple Payment Channels The easier you make it for customers to pay, the faster they will. Offer:

  • Online payment portals
  • Mobile-friendly payment options
  • ACH/bank transfers
  • Credit card processing
  • Text-to-pay functionality


🚀 Where Skyline Payments can make the difference: Our comprehensive payment solution addresses multiple pain points simultaneously:

  • Self-service customer portal: Customers can view all invoices, make partial or full payments, and manage their payment methods without calling your office
  • Multi-invoice payments: Allow customers to pay multiple invoices in a single transaction, reducing friction
  • Unlimited saved payment methods: Customers can securely store multiple payment options for convenience
  • Text-to-pay: Send payment links via SMS for immediate mobile payments
  • Autopay options: Customers can set up automatic payments, virtually eliminating late payments


6. Streamline internal processes to eliminate delays

Optimize your order-to-cash process
Identify bottlenecks, approval delays, and manual handoffs that slow down the process from order receipt to cash collection. Common areas for improvement include:

  • Order processing and fulfillment
  • Invoice generation and approval
  • Delivery confirmation and invoice dispatch
  • Payment processing and application

Integrate your systems
Multiple disconnected systems create opportunities for errors, delays, and lost information. Integration between your ERP and payment processing systems enables seamless data flow and automated processes.


🚀 Where Skyline Payments can make the difference: We sync directly with popular ERP and accounting systems, eliminating double data entry and ensuring payments are automatically recorded and reconciled. This helps to reduce errors, save time, and provide real-time visibility into your cash position.


7. Optimize costs while improving collections

Strategic fee management
Processing fees can significantly impact your margins, but the right approach can actually improve your cash flow:

  • Implement service fee pass-through to customers for credit card payments
  • Utilize ACH processing for lower-cost transactions
  • Take advantage of Level 3 processing for B2B transactions (up to 30% rate reduction)
  • Negotiate better rates based on volume and payment mix


🚀 Where Skyline Payments can make the difference: our advanced payment platforms can automatically apply service fees to customer payments, recovering your processing costs while maintaining competitive pricing. Combined with optimized rate structures and ACH alternatives, our customers often save thousands annually on processing fees.


The bottom line: transform your cash flow today

Every day DSO goes unchecked is cash trapped in receivables. Process improvements and customer-friendly practices can help, but lasting change comes from streamlining and automation.

Modern AR tools simplify payment, reduce manual effort, and remove friction for both you and your customers. The result isn’t just faster collections—it’s stronger cash flow, lower costs, and more time to focus on growth.

Improving DSO isn’t about chasing payments—it’s about building a smarter, more streamlined operation. This is why thousands of businesses use Skyline Payments to help improve their cash flow.


Schedule a meeting today to learn more 

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