This informative webinar was hosted by Conor Dowd, AMCS Global Marketing Manager, Alexander Taskey, Global Head of Payments, Matthew Thacker, Pre-Sales Engineer, Sean McGrath, Head of Product - Payments and Matt Curry, ReMA Senior Digital Marketing Manager.
The webinar topic primarily focused on supplier payments, and how AMCS’ new Supplier Payments solution, can empower foundational industries to streamline operations through digital payments, beyond the usual suite of cash, check, and ECH.
Here are some of the key takeaways:
scrap metal operators face significant cash flow and payment challenges
Alexander highlighted some key industry insights which revealed that the cost of cash averages 9.1% - this means that every $100 payment in cash costs a business $9 to manage. Other challenges includ bank processing fees, such as deposit and transport fees, as well as hidden fees, such as administrative costs and shrinkage. However, AMCS recognizes that if a CFO or finance team review these costs and adopt seamless digital payment solution, they would generate significant ROI for their organization.
businesses are moving away from checks
Over the years, most businesses have been impacted by negative cash flow management due to checks having hidden costs such as postage, materials, and labor. In North America alone, check usage has decreased by almost 60% since 2004, due to businesses realizing that modern digital payment solutions are more cost-effective. Another major reason is that check fraud is a major issue: a JP Morgan study reveals that an alarming 81% of organizations fall victim to check fraud.
restrictive regulations are phasing out cash
To minimize the risk of theft, counterfeiting, and the potential for money laundering activities, strict regulations have been put into effect across Europe, America, Canada, the UK, and Australia. . These regulations impose stringent limits on cash payments in the scrap metal recycling industry and further drive the need for digital records to ensure compliance. Since January 2024, the EU Commission proposed limiting cash payments to €10K, with Canada also limiting the same amount. In the U.K., metal recyclers are prohibited from accepting cash payments. To help with this, your business needs to factor in a cash reduction strategy that does not affect your customers while also adhering to these regulations.
MB managers want to get paid faster
According to research gathered from Mastercard and Capterra, 90% of suppliers prefer to receive a digital payment over a check and cash. Another 90% of small business managers stated in Capterra’s survey expect to use digital payments these days, and this will just further increase over the coming years. Finally, 42% of managers say that digital payments have improved their overall customer experience, with other notable benefits they identified were increased revenue and operational efficiency.
AMCS integrated payment solution
AMCS Pay Pre-Sales Engineer Matthew Thacker demonstrated AMCS Pay for Supplier Payments, a new solution which helps our customers streamline their accounts payable solutions, speeds up reconciliation, and expedites those transactions at the yard.
AMCS is revolutionizing supplier payments, transitioning from traditional methods to integrated, digital solutions. This service supports both conventional payments (cash, checks with Positive Pay, ACH) and emerging digital methods like instant payouts to debit cards, prepaid cards, and digital wallets.
Suppliers can receive instant payments anytime, anywhere, enhancing their loyalty to your company. Integrated into the AMCS Platform for Metal Recycling, it simplifies control, approval, auditing, and reconciliation of payments.
A standout feature is real-time visibility of all transactions and associated invoices on a single AMCS Pay account, boosting control and transparency.
Part of the broader AMCS Pay suite, this solution streamlines making and receiving payments across all channels with a variety of digital methods.
key benefits of AMCS Pay for supplier payments
For your business:
- Speed and Flexibility: Instantly pay vendors anytime, anywhere, using their preferred payment method, boosting brand loyalty
- Cost and Risk Reduction: Cut down on high costs and security risks associated with cash and checks, including reconciliation efforts.
- Operational Simplicity: Seamlessly integrated into the AMCS Platform scrap payment workflows for ease of use, as well as fully automated recurring payments.
- Security: Benefit from real-time control, full payment auditability, and compliance with global security regulations.
- Transparency: Instantly view payment statuses; all transactions are fully auditable.
- Simplified Support: Enjoy the convenience of a single partner and 24/7/365 support.
- Fully regulated by the Federal Reserve Bank and Electronic Funds Act.
For your customers:
- Get paid faster and more securely
- Track payments seamlessly
- No handling of cash or checks
closing remarks and questions
Wrapping up, Alex and Sean answered several questions from the audience to gain a better understanding of the software. Some of these included:
“Can AMCS Pay both take and make payments? Can it manage both AR and AP?”
AMCS Pay offers a comprehensive solution for both Accounts Receivable (AR) and Accounts Payable (AP) within the AMCS platform. This is particularly beneficial for metal recyclers, as it integrates seamlessly with terminal operations at the scale. Businesses can manage both the purchase of metals and the sale of materials directly at the scale, which are often handled separately. The platform supports various payment methods, including instant payouts, Apple Pay, Google Pay, and batch payments for account customers. This integration simplifies operations, enhances payment flexibility, and ensures all transactions are efficiently managed within a single system.
“Can an operator put their brand on the reloadable prepaid cards?
Yes, operators can customize reloadable prepaid cards with their brand. This supports the customer experience and enhances brand visibility. By providing the necessary design files from your marketing department or digital agency, you can ensure the cards look professional and aligned with your brand. AMCS is happy to facilitate this white-label branding on their products.
“How much typically does a physical prepaid card cost, who supplies them and what is the process if a customer loses their prepaid card?”
The cost of physical prepaid cards and their suppliers can be discussed in detail with your sales representative. If a customer loses their prepaid card, they can call the toll-free number printed on the back of the card. This connects them to a 24/7 help desk that can issue new cards, avoiding the need to return them to the recycler. Clear instructions are provided to suppliers to ensure a smooth process. Additionally, AMCS offers incentives for starting the program, with costs scaling as operations grow. This approach simplifies digital payments and encourages their use.
In summary, some key takeaways are the significant hidden costs associated with cash and checks, including bank processing fees, internal costs, risk of fraud, and reconciliation overhead. Transitioning to digital and integrated payments is a journey that varies by market and customer, often driven by regulations. For instance, the UK banned cash for supplier payments over a decade ago, and European regulators are targeting cash and check payments. This shift to digital is inevitable and beneficial for operators and suppliers, offering a win-win scenario with enhanced payment experiences and operational efficiencies. While these were just some of the key takeaways from the webinar, there were some other notable topics covered and questions answered. You can watch the full webinar here.