Aug 17, 2020 5:26:00 AM
One of the biggest upsides to moving away from a paper-based business model and check payments is increased security.
Paper checks contain sensitive payment information but carry almost no safeguards to prevent someone with fraudulent intent from forging them or accessing a buyer’s bank account using just the bank routing number. And there’s no easy fix to this routing number challenge since correcting this security weakness would eliminate the convenience of being able to write a check in the first place.
The potential for abuse of checks is so big in fact that security experts indicate checks might be one of the least secure payment methods in B2B transactions. Checks are simply touched by too many hands in their life cycle; they are sent by mail, dropped at front desks, picked up by employees, and left to sit on yet other desks in accounting departments before they are processed, deposited, and properly stored or destroyed.
Electronic payments like ACH have long been recognized as safer alternatives to checks. Luckily there is another, even safer, option in the form of virtual payments. Kontrol offers virtual payments directly from a user’s existing accounting system. This protects companies from the threats posed by hacking and fraudulent invoicing. Using single-use account numbers that are no longer active once a transaction is completed makes virtual payments far and away the most secure method for 21st century payments processes.
Further security benefits of virtual payments include custom payment amounts; single-use, randomly generated account numbers; pin protection; secure payment notifications to suppliers upon card use; and finally, Merchandise Category Code checks, which ensure that the payee’s industry-specific MCC matches that of the individual or organization attempting to process the payment. If these security features and internal safeguards are triggered, a payment may decline.
Both efficient and simple, Kontrol’s virtual payment platform even generates new revenue streams, sending quarterly rebates to customers while enabling buyers to continue using their existing AP and accounting applications. Kontrol is committed to the long-term success and well-being of its clients and their suppliers. Partnering with Kontrol offers businesses a blend of payment efficiency and dependability while also addressing security. Converting to virtual payments is a smart business decision in a world that is quickly shedding its risky paper shell.