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Insights and Expertise

sion. The patented panic alarm integration discussed here As organizations continue to navigate these challenges,
exemplifies how technological innovation continues to the adoption of advanced payment technologies and fraud
reshape the boundaries between payment processing and detection tools becomes essential for safeguarding their
broader merchant services. For payments industry profes- operations and maintaining trust with stakeholders and
sionals, understanding these technological advancements critical business partners.
enables more nuanced discussions with merchants re-
garding the comprehensive value proposition of modern The growing threat of fraud in digital payments
payment systems. The number of fraud attacks on the average vendor has

risen significantly, with various types of fraud increasing
Elie Y. Katz is founder, president and CEO at National Retail Solutions from last year's numbers. Globally, 30 to 40 percent of
(NRS), https://nrsplus.com. Contact him by phone at 201-715-5179 or organizations identify gaps in fraud tool capabilities
by email at ekatz@nrsplus.com. Five essential skills for success in the leading to a rise in phishing attacks, phone scams, invoice
payments industry From vulnerable to vigilant: AP automation in action fraud, and account takeovers (see http://bit.ly/4l8shRR).
From vulnerable The lack of internal fraud management resources
and limited data access are significantly impacting
organizations' abilities to combat deception. Fraud not
to vigilant: AP only impacts sales and revenue rates but also damages
relationships with their suppliers. To combat these
automation in action challenges, and ensure trust, organizations must adopt
more sophisticated fraud prevention tools and strategies.
AP payment technology and mitigating fraud risks

Accounts payable automation technology streamlines AP
processes, from invoice receipt to payment completion.
Payment automation seamlessly integrates with existing
enterprise resource planning systems, enhancing effi-
ciency through automated invoice matching and approval
processes, real-time monitoring and alerts for suspicious
activities, and robust data encryption within secure pay-
ment gateways.

This integration ensures more accurate data synchroniza-
tion, reduces manual errors and accelerates payment cy-
cles. Given that vendors handle both their own and their
suppliers' sensitive financial information, AP payment au-
tomation technology is necessary to create a secure envi-
By Darin Horrocks ronment for that data storage and establish an audit trail,
REPAY reducing the likelihood of unauthorized transactions.
Tools to combat fraud
n today's rapidly evolving financial landscape, the
shift towards digital payments offers numerous Payment automation technology incorporates multiple
benefits to organizations and their vendors and tools and processes to prevent fraud including custodial
I suppliers. Digital payments streamline transactions, accounts, ACH validation, permission control and
enhance convenience and improve efficiency, making separation of duties, positive pay, and secure data storage.
them an attractive option for modern commerce.
One effective approach is the use of custodial accounts.
However, an increase in fraudulent activity has compelled Traditional methods like sending paper checks or ACH
organizations to adopt smarter strategies for fraud payments expose bank account numbers to potential
prevention by integrating modern payment protection fraud. By setting up custodial accounts, organizations can
technologies. isolate funds in a separate account, preventing fraudsters
from accessing primary business accounts.
Organizations often lack the resources, expertise and
bandwidth to appropriately recognize sophisticated Funds are transferred only when payments are due,
illegitimate invoices and prevent fraudulent or incorrect protecting account and routing numbers, limiting who
payments, further highlighting the need for robust fraud has access to the funds, and providing enhanced control
prevention measures. over credits and debits.

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