In today's economic landscape, it may be difficult to find companies with a surpluss at the end of the year, but those who do must ensure they invest wisely as they move into 2013. Instead of sitting on additional cash, it's important for organizations to use the money to upgrade vital processing systems. For vendors, it's a good chance to boost payment processing solutions.
An article in the Globe and Mail suggests that Canadian companies should use their "dead cash" to improve systems in the new year. Patricia Meredith, the author of the article, cites a recent initiative from the Ontario task force on competitiveness, productivity and economic progress that indicates companies can use excess cash as an opportunity to better the company. Meredith suggests most of these investments should be made in the financial industry.
"Financial institutions would need to make the largest investment - more than $1-billion each to replace their 35-year-old core banking platforms with modern systems capable of supporting immediate funds transfer and carrying the information their customers need to automate processing," Meredith writes.
The United States is no different. Companies that use their cash to invest in new payment solutions can improve their operations. In fact, by procuring new systems and accepting new payment methods such as p cards with level 3 data, vendors can experience a strong ROI.
This can be attained a number of different ways. Accepting level 3 data reduces processing fees. Investing in solutions such as tokenization to store data offsite, vendors can keep customer information private, which goes a long way in helping them attain PCI compliance. Those that follow regulations can also experience cost-saving opportunities.
Ultimately, vendors that invest wisely will be able to acquire solutions that could present them with a surplus again at the end of 2013.