A discussion taking place among people involved in improving the payment system is whether the emphasis should be on instant or same day credit of payments. The answer is that electronic payment systems and rules should have the flexibility to provide both methods depending on the type of billing the business engages in.

Businesses such as utilities that bill monthly will likely want a daily file of payments that can easily and accurately be imported into their accounts receivable system. They want one file of payments for the day and one credit to their bank account to cover the payments.

Businesses that must deliver their goods instantly, on the other hand, must get their payments at the time of delivery. Retail sales would be an example. They reconcile their bank by matching their sales to their deposits at each of their sales points. Today, they get instant payment by cash, credit or debit card. What they want is less expensive payment mechanisms than credit cards especially. Cash and debit cards fill that requirement now except in the case of internet purchases. We foresee the digital wallet will be able to meet that need for instant, guaranteed funding of such purchases.

The Department of Finance has the aim of increasing competition and innovation in the payment field. Telpay hopes to continue to aid in achieving those goals.

It was true when Ben Franklin wrote it in the 1740s, and it’s true now: time is money. This is one reason why you should consider funding your Telpay payments via online banking rather than using your bank’s funds transfer or wire service. Doing so could cut your payment processing time by at least 75%.

Here are three more reasons.

1. It’s fast

Once you set up Telpay as a biller (payee) to fund your payments, we can process your payments as early as next business day (two for payroll). You just have to make sure that you send your payment file and funds to us one day before your payment date or two days prior to your payroll date. With this quick turnaround time, it can mean the difference between an early payment discount and none at all.

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On Thursday, September 13, 2018, Telpay hosted a panel discussion at the Institute of Professional Bookkeepers of Canada (IPBC) National Conference in Calgary. The panel discussed the changes to the rules and procedures regarding processing payments in Canada. FinPay, a committee set up by the Department of Finance, has been working on it for some time. John Zajic, Vice President, Corporate Policy, Telpay, is a participant on the FinPay advisory panel.

Same Day Payments

We may see initial results of their work this month. We understand that an added daily exchange between banks will begin this September. This one change will be of great benefit to business generally and to Payment Service Providers especially. The proposed 9:00 PM EST exchange will mean, for example, that funds transferred to Telpay during the day can be paid out and credited to the intended recipient the same day. Deadlines for payroll payments, for example, will likely be shortened one full day. Anyone involved in payroll processing understands how beneficial this is. However, there are other benefits as well. Errors and adjustments may be reduced. We can’t say precisely how it will be implemented but you can be sure that Telpay will do so as soon as possible with payroll being our priority.

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One thing we probably do not focus enough on here at Telpay is our ability to let our clients manage their accounts receivable through pre-authorized debits (PADs). Imagine having all your accounts receivable collected on a single day with virtually no effort. That is what PADs can do for you.

Payments Canada has a set of PAD rules and standards that all businesses have to follow. These rules protect the account holder from abuse. However, as long as requirements are met, this is a service of significant advantage to everyone.

PADs are the best option to use when collecting recurring payments such as rents, mortgages, monthly fees, and insurance premiums. However, regular monthly billings such as bookkeeping and accounting service fees, professional and club dues can also be collected by this method. You must have your customer’s permission to debit their bank accounts. PAD samples used by our clients are reviewed to make sure they meet the requirements established by Payments Canada. Getting that permission is most often built into your agreement with your customer.

With Telpay for Business electronic payment software, you can efficiently manage your collections list, import a collection file, and maintain the collection file. If you are an existing Telpay for Business customer, to get started all you need to do is apply for the PAD service. There is a setup fee and transaction fee, but no extra monthly fee, making it even more affordable to use.

Here are some tips for a successful implementation of PADs:

1. Make sure your billings are of a type that suits the requirements of Payments Canada. Only recurring types of billings are permitted.

2. Get permission from your customers to debit their bank account using the required form.

3. Notify your customers when you are ready to begin debiting them. Telpay notifies its customers that they will be debiting approximately ten (10) days in advance of actual debit. This gives your customers time to view your bill before they are debited.

4. With our PAD service, you send us a file of your monthly debits. Telpay will then debit your customers on the day specified and forward the funds to your bank account as soon as they are cleared. Typically there is a four (4) day hold.

To learn more about PADs, contact 1-800-665-0302 or visit telpay.ca/for-business/get-paid.