By now you would ve heard about The Connected Practice. But what is it, exactly?

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2 Contents Introduction Late payment impact...3 Emerging payment trends...3 Types of fraud... 4 Adding value... 5 Seizing opportunities... 5 Adding to your knowledge... 6 Invoice Payments...7 Offering solutions... 8 Easing pain points... 9 Adding clarity Industry expertise We re here to help...11 By now you would ve heard about The Connected Practice. But what is it, exactly? It brings together transaction processing, compliance and business advisory with a focus on automating processes to enable new income streams to be created in business advisory. But how do payments fit into The Connected Practice? It s becoming more and more common, accountants and bookkeepers need to reconsider their business model specifically, how they invoice, accept payments, protect against fraud, and monitor emerging payment trends. What does this mean for you and your clients? New payment solutions present opportunities for your clients to attract and retain their customers, improve their own efficiencies and innovate. By understanding more about payments, you can help your clients capitalise on these opportunities through payments advisory. For you and your practice this can become a new value-added service you can offer. There are four key ways you can help your clients and build your payments knowledge and advisory capability Making payments easy Managing the cost of payments Minimising payment fraud Staying compliant 2

3 Late payment impact Emerging payment trends Late payments and unpaid invoices cause major headaches for many business owners. It s a harsh reality that small businesses are typically at the bottom of the payment pile. Late payments puts added pressure on your clients cash flow. If your clients are small businesses, contracting to bigger businesses who fail to pay on time, it can reduce their ability to pay staff, maintain equipment and grow their business M Australian SMEs have on average $38K in outstanding invoices waiting to be paid. Cash flow crisis report, Jan 2017 Average payment time for an Australia business is 14.6 days late. Payment times, finder.com, Aug 2017 Top 5 pain points caused by late payments are: ability to pay invoices, stress levels, personal finances, ability to pay staff wages, and ability to hire. Cash flow crisis report, Jan 2017 Last year, credit card payments overtook cash for the first time. Reserve Bank Australia, M credit cards are circulating in Australia. Credit Card Statistics, Finder.com, July Aussies spend $258 on their credit cards every month. Credit Card Statistics, Finder.com, July 2017 This change presents opportunities for your clients to attract and retain customers, improve efficiencies and innovate. Already, Australian consumers have made leaps in this direction, embracing technology such as Paywave, Apple Pay and Android Pay. The way consumers pay for goods and services is constantly evolving. And this presents an opportunity for you to advise on. Consider the last time you paid for something using a cheque, which are officially being phased out by Cashless is the logical next step. But, as with many monetary trends, the cashless push is being led by consumers. Businesses with a shop-front will benefit from having no cash held on premises, potentially protecting them from the dangers, costs and general nuisance of break ins and errors in cash calculations. Going cashless would also eliminate the time and money it costs businesses to deal with physical money. Businesses will reduce bank visits and avoid the need to balance the till. With this great shift in consumer spending underway, do your clients want to be the one business which still has a cash only sign taped to the register? 3

4 Types of fraud don t be afraid to get in touch with the cardholder after all, you re calling to alert them to potential fraud. 2. Set velocity transaction filters on orders Given a lot of fraudsters simply use bots to spam order (rather than it being an actual person on the other end of the sale), this is an effective way to trip them up. 3. Get a signature When the goods are shipped, make sure you confirm the customer s shipping receipt with a signature. Sometimes there s no real way of proving your customer got something unless you get a signature on delivery. 4. Put customers on notice at the first sign of purchase abuse If you notice a suspicious amount of orders coming through, then get in touch with the buyer as soon as you can. It s generally a great way of clearing up any misunderstandings, while also letting any fraudster know that you re onto them. It s important to have an action plan in place in case you suspect an order is fraudulent. Spending time on preventing credit card fraud will save you time and money in the long run. Subscribe to the ACCC s Scamwatch alerts and report instances of online credit card fraud to the Australian Cybercrime Online Reporting Network. While the overall level of fraudulent activity remains low against legitimate orders, the effect is disproportionately large for small business owners. There are two main types of common fraud you could advise your clients to look out for: + + There are malicious fraudsters using stolen card data to process transactions + + Then there s chargeback fraud, where a person maliciously and purposefully initiates a chargeback on an item despite having received it. It s important to note that not all chargebacks are malicious some are just the result in people simply forgetting they ordered something and then initiating a chargeback on something they think they didn t order in the first place. Now nearly all small businesses are processing online orders as well as oldfashioned orders, the chances of catching a fraudulent one are increased. To help fight current and next-gen fraudsters, here s a list of best practice things you can advise on to make sure you and your clients don t fall victim to fraud: 1. Review sales orders for suspicious activity Take a quick look at your transaction list at the end of the day and look for the following signs: unusually high transaction amounts; orders shipped to different addresses registered with the one card holder; multiple orders with the same card holder. It doesn t take a huge amount of time to play spot the pattern. If you see a pattern which may be suspicious, In 2016, Australians transacted $714,493,362,892 using Australian cards; of this total, fraud accounted for $533 million* Types of fraud Card not present Counterfeit / skimming Lost / stolen Never received Fraudulent application Total fraud $533M Transactions $714B 79% 11% 7% 2% 1% * Australian Payments Network Publication,

5 Adding value Seizing opportunities When it comes to running a business, you and your clients want to be able to make and receive payments, quickly, easily and securely. That s why we launched MYOB PayBy, our payment solutions that makes getting paid and making payments pain free, so you can get on with what you do best: focusing on the work you love. The purpose of this guide is to help you understand the range of MYOB PayBy payment solutions at your disposal, and to make it easier for you to know where to start on recommending payment solutions to your clients. MYOB PayBy exists to tackle specific payment acceptance pain points for you and your clients so you can both save time and make more money. For your clients this means improved cash flow by faster payment acceptance, and in turn more time to focus on running their business. For you this means the opportunity to broaden your service offering by recommending payment solutions, offering greater support, and gain a better understanding of your clients business performance. Adding to your knowledge compliments the expertise you already have to cement your position as the person best placed to advise your clients on payment solutions. 5

6 Adding to your knowledge Making payments easy by offering choice To accept payments quickly and easily is to offer choice of payment such as credit cards, BPAY and Electronic Funds Transfer (EFT). These days, there are fast emerging payment types such as AliPay, Wechat Pay, UnionPay, AfterPay and many more. Enabling such payment types to be accepted expands you and your client s business. Managing the cost of payments A big part of enabling payment acceptance is understanding and managing the cost of payments. Perhaps many of your clients are reluctant to pay a fee to get paid and will only offer low cost payment types such as EFT. But think about the knock on effect of this. By limiting payment types to be accepted could mean late payments made by customers, in turn affecting business cashflow. Protecting payments As we stated earlier, fraud can be a major problem for your small business clients. There are two predominant types of fraud that they, and you, should be aware of. There are two predominant types of fraud: 1 2 Identity Card fraud stolen cards or copied card numbers. Card not present fraud accounts for 85% of all card fraud, for example shopping online. fraud - phishing, hacking and personal identification theft. This can happen for both card or EFT transactions. To combat fraud ensure you have Two Factor Authentication (2FA) turned on, look out for unusual behaviour such as changed shipping addresses etc, delete suspicious s, avoid storing card details. MYOB is implementing a new fraud engine on invoice payments. And payments are already protected with 3DSecure (a form of 2FA for credit cards). Next generation 3DSecure is coming with more sophisticated fraud detection and less customer inconvenience intrusion. Secure remote commerce, where Visa, Mastercard and AMEX are teaming up to create a new solution to secure online payments. This is a huge innovation and MYOB is one of five payment providers that has been invited by Mastercard to participate in the pilot. 2FA is a secure sign in process. Visit for more info 6

7 Invoice Payments Utilising Invoice Payments with your industry leading online MYOB accounting software puts the power of automation, speed to pay directly from invoices, quick settlement, and intelligent insight to track the status of a late invoices at your finger tips. Invoice Payments enables your customers to pay you by credit card (VISA, Mastercard) or BPAY. There is no monthly fees or setup costs, however there is a 1.8% c per transaction cost. To access Invoice Payments, you will need to register as a merchant with MYOB. Once you have registered, you can your invoices to your customers. You customers will see a big green pay now button on the invoice to pay you directly. Download the MYOB Invoices app and send invoices directly to your customers from any device such as an ipad or iphone. MYOB Invoices and the Connected Practice are a powerful combination that strengthen the relationship you enjoy with your clients. Bring together transaction processing, compliance and business advisory, and focus on automating processes to enable new income streams in business advisory. MYOB launched a new re-certification module on Invoice Payments within MYOB Academy. Invoice Payments enable your customers to pay straight from the invoices you send. Learn the ins and outs of Invoice Payments by visiting MYOB Academy. Advisory Compliance Transaction Processing 7

8 Offering solutions MYOB PayBy provides simple and secure payment solutions to enterprise businesses such as payment gateway services, merchant service facilities and fraud management, enabling payments from invoices, online, face-to-face and telephone. Our sophisticated fraud tools can help you manage risk and fight current and next-gen fraudsters. We give you peace of mind that your business information is safe and secure with our PCI DSSLevel 1 compliance gateway. We work with all major banks, enabling competitive transaction rates and quick settlements. Giving your customers convenient and easy options to pay is great for business. PAYMENT GATEWAY Transfer transactions securely between your online store and merchant facility via a payment industry network of banks and schemes MERCHANT SERVICE FACILITY Lets you accept and process customer payments (different to a payment gateway because it actually settles the funds before depositing them in your business bank account) FRAUD MANAGEMENT Keeps businesses secure by blocking fraudulent payments without decreasing valid transactions 8

9 Easing pain points MERCHANT SERVICE FACILITY Benefits for your clients + + Make payments easy + + Accept a greater range of payment types such as: Mastercard / Visa / AMEX BPAY China UnionPay + + Reduce bank visits and avoid the need to balance the cash till Benefits for you + + New value-added service you can offer + + Manage the cost of payments + + Improve cash flow through greater payment acceptance PAYMENT GATEWAY Benefits for your clients + + Quick and easy method to accept card payments + + A customisable website payment page that collects essential information from every transaction made + + Secure PCI Compliant infrastructure means online orders, invoices and statements are processed with complete peace of mind Benefits for you + + Improve efficiencies and attract new customers + + Automate processes to enable new income streams from existing customers + + Reduce errors in cash calculations and reconciliation FRAUD MANAGEMENT Benefits for your clients + + Self-service and easy to use + + Protects the entire payment chain + + Deploy with or without machine learning Benefits for you + + Minimise payment fraud + + Flexibility to block fraudulent transactions + + Stay compliant 9

10 Adding clarity Industry expertise With so many payment solutions at your disposal it can be hard to know where to start and what to recommend. We recommend starting by gathering as much information as possible from your clients. Such as: What is the annual gross turnover? How many ecommerce transactions have been processed in the last 12 months? And what is the 12-month forecast? What is the value of transactions over the past 12 months? And what is the 12-month forecast? What is the current merchant pricing? What is the current level of chargebacks? Who is the acquiring bank? How would you like to accept payments? IVR / Phone Website MYOB Invoice Payments Invoice Payments What payment types do they accept? Visa Mastercard Diners Amex BPAY EFT If you re unsure what payment solution to recommend, the customer information to sales@myobpayby.com and a specialised MYOB PayBy representative will be in touch. Discover resources, tips and tricks on the My Success Payment Solutions page. For more information on our payment solutions, visit MYOB PayBy website Build on your knowledge by reading our payment solutions blogs 10

11 We re here to help You can contact your Partner Manager at any time GPRC