Businesses lose millions every year due to transaction failures, according to new research. The GoCardless report says as the number increases year on year, companies that use manual and labor-intensive procedures to hunt and collect money suffer the most. The GoCardless survey data revealed that companies could lose up to €1 million a year and those in the mid-market around €200,000. Small businesses could earn more than €6,000 a year. Payments collected via digital wallets were identified as having the highest failure rate at 12%. These were closely followed by credit and debit cards, at 8,2%, almost three times the number of businesses using optimization services like those offered by GoCardless.
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Duncan Barrigan, product manager at GoCardless, said: “Payment failures are widely accepted as a foregone conclusion. We do not believe that is the case. They can seriously damage a business: they are expensive and can damage reputations and customer relationships. "Without adopting new technology, businesses spend thousands of dollars unnecessarily, additional financial services cost €140,400, IT €138,800, health and wellness €86,400 and public services €85,200 per year according to data from the survey. Charlie Francis, founder and director of Equation Training, an online fitness and personal training company, said: "When I started, I had to manually chase down payments that had failed. Now that Success+ is in place, it means that a process that used to take 2-3 hours a week no longer takes me any longer."