Alcohol businesses are required to pay for deliveries according to state regulatory laws. Payment terms typically mandate:
- COD (cash on delivery), meaning payment for the alcohol is made at the time of delivery or;
- Payments on specific dates of the month (for example, the 15th and 30th) or;
- Credit, referring to an option for a line of credit or charge account with the distributor or;
- Any combination of the above, as there can often be different terms for beer, wine, and liquor.
From an accounting standpoint, it can be frustrating to wait for payments made with checks or money orders to post to your account. Electronic Funds Transfer (EFT) allows funds to be transferred from retailer to distributor instantly.
Fintech’s PaymentSource® network automatically processes EFT payments per the due date on your invoice so you never have to wonder when a payment will post to your account.
How EFT Payments Work
EFT payments are transmitted across an online network between banks. They are a safe and speedy alternative to managing cash, obtaining money orders, or writing checks.
In order to successfully transmit, an EFT payment requires both a sender and a receiver. For alcohol deliveries, you can link your business bank account with the Fintech network to automatically authorize EFT payments to your various distributors. There is no need to manually submit or approve payment for any alcohol deliveries.
Key Benefits of EFT For Alcohol Businesses
1) Easily Track and Monitor Alcohol Invoice Payments
A great benefit to alcohol EFT payment companies like Fintech is more visibility into your payments.
With EFT payments, you can receive notifications when a payment is processed. All records of payments with distributors on the Fintech network are housed in an easy-to-use dashboard.
By staying on top of payments in real-time, businesses can stop wasting resources tracking down payment activity through manual processes. Managers can also be automatically notified if a payment is flagged for insufficient funds.
2) Reconcile Alcohol Payments with Ease
Reconciliation is a painstaking process for retailers. Cross-checking paper invoices with financial statements can be incredibly time-consuming.
When using an alcohol EFT payment company, retailers can store all invoice data digitally, allowing them to simplify the process of reconciliation by having the most updated and accurate line-item invoice details on hand.
Accounting departments reap the benefits of this automation, relieving them of the constant headaches associated with paper invoice management, manual invoice data entry, and bank reconciliation by having accurate, easily accessible alcohol payment data to refer to when needed.
3) Stay in Compliance with Any Payment Terms Your State Mandates
States impose strict regulations surrounding payment for alcohol. These regulations mandate either payment at the time of delivery or payment on specific dates of each month for beer, wine, and spirits.
Incorporating your EFT payments into a B2B alcohol management solution like PaymentSource allows retailers to effortlessly remain compliant with each alcohol category’s terms, even if they all differ from each other. For example, PaymentSource can handle EFT payment upon delivery for beer and another payment on the 15th of the month for spirits.
There is no need to worry about having payment on hand at the time of delivery or remembering to mail a check for an invoice that offers you terms.
Increase Operational Efficiency to Save Time and Money
Stop wasting time having to obtain money orders, mail checks, and manage payments for each delivery. Retailers can get an immediate ROI with EFT payments by using that time to manage their business, visit customers, and work with their staff to drive business efficiency and create a consistent customer experience.
By using an EFT payment solution like Fintech, retailers stand to gain more visibility into their invoice data for reconciliation and can have peace of mind knowing all alcohol payments will process on time and in compliance with regulatory terms.
Fintech’s PaymentSource provides this EFT solution in addition to other actionable alcohol data insights that can influence purchasing decisions and protect margins. Learn more about integrating PaymentSource into your alcohol business to further increase operational efficiencies here.