Build a Payment Strategy for Growth | Tory Burch Foundation

For founders, payment processing is usually an afterthought, dismissed as a mundane back-office function. It’s actually so much more. 

“A purposeful payment framework doesn’t just keep operations running, but drives real impact,” said Jessica Karamoutsos, SVP of Merchant Services at Bank of America. It’s a proven lever for scalability, essential to your business’ health and long-term success. As part of our webinar series, Karamoutsos explained how you can optimize your payment strategy and supercharge your company.  Editor’s note: Bank of America sponsors our Business Webinar series.

WHY IS PAYMENT STRATEGY IMPORTANT?

An effective payment system is crucial to managing cash flow, “the lifeblood of your business,” as Karamoutsos put it. You get paid faster, ensuring you have the funds you need now—e.g., for payroll—and later, to invest in growth. 

Healthy cash flow means operational efficiency: less fees and manual work, more time and money saved. Plus, your payment history can serve as a pulse check. It reveals seasonal patterns, challenges and opportunities, giving you a clear picture of where you are today and where you can go. 

CREATING A SMART PAYMENT STRATEGY.

To build a successful framework, focus on three fundamentals: your growth goals, your receivables and your customers. 

1. Align your payment strategy with your goals. 

Define short- and long-term goals, determine your target customers and map out the steps to achieve these objectives. Use forecasting tools, like Bank of America’s CashPro, QuickBooks Cash Flow Planner, Fathom and Float, to anticipate revenue and expenses, so you can make informed decisions. Don’t forget to review regularly to adjust as market conditions evolve. 

“Set measurable goals you can take incremental steps towards,” Karamoutsos advised. Her case in point: If you aim to cut processing time by 20%, you could begin by upgrading software or switching providers. 

2. Streamline your accounts receivable (AR). 

Establish clear payment terms—and enforce them. Follow up promptly to keep AR moving. “Don’t let overdue invoices linger,” Karamoutsos stressed. Leverage digital invoicing and payment options, and take advantage of AI tools, like Bank of America’s Intelligent Receivables, which has AI-powered invoice matching that can flag any discrepancies instantly. 

Be strategic about your outgoing cash while collecting incoming payments faster. The better the balance, the more control you have. Struggling with a partner that doesn’t pay on time? Karamoutsos recommended switching to a recurring payment model for steady revenue.

Understand your overall financial health by tracking your net cash flow—and know your break-even point . “AR isn’t just about collecting payments,” she reminded us. “It’s about creating predictability and freeing up resources for growth.” 

Companies with different lines of business (e.g. wholesale and direct-to-consumer, or who sell in-person and online) should stop juggling multiple payment systems. Consolidate under one platform to simplify day-to-day operations. Options include Shopify, Square and Stripe. In specialized sectors, research industry-specific software that can integrate with your existing systems—say, DrChrono for healthcare. And always schedule an annual audit of your entire financial system—from payroll to AR and point-of-sale (POS)—to avoid unnecessary layering as the business expands. 

3. Meet your customers where they are.  

For starters, you must embrace digital. “The benefits go beyond convenience,” Karamoutsos explained. “It allows for faster transactions, improved cash flow and an overall better customer experience.” It’s no longer a nice-to-have—it’s expected. 

The data you collect through digital payments also provides valuable insights into customer habits and buying trends, so you can make calculated decisions and plan ahead with intention. A smart POS system can even sync with your inventory, accounting and CRM (customer relationship management) systems to give you real-time visibility. 

According to Karamoutsos, the metrics that matter most here are those that drive loyalty. “What could you put in place to establish a connection—a promotion? Ten percent off on their birthday?” she asked. “If you’re a salon owner, maybe there’s an opportunity in offering exclusive services to brides?”

Next, diversify your payment methods to broaden your reach by adding payment links, QR codes, text-to-pay, tap-to-pay, digital wallets (Apple Pay) and emailed invoices. Consider all the ways customers shop, too, like websites for a 24/7 “storefront” and mobile or tablet checkouts for pop-ups and deliveries. 

A Word About Fraud

Be prepared: with more digital activity comes greater exposure to fraud. Work with a financial institution to protect both your business and your customers, and make security measures clear at point of sale so customers know their transactions are safe. Bonus: you’ll also build trust and encourage repeat business. 

HOW TO CHOOSE A PAYMENT PROVIDER.

Do your due diligence and speak to  a representative at a potential payment provider. “They’re interviewing you as much as you’re interviewing them,” Karamoutsos said. “If they don’t understand your business, that creates potential cost concerns.” Your vendor needs to understand where and how you do business to recommend the appropriate tools, safeguards against fraud and more. 

Do you sell internationally? Then it gets more complicated with different countries, currencies, guidelines and fees. You’ll likely be working with different providers, so it’s important to ask questions up front. As industry trends change, you don’t want to be surprised by additional costs later. Determine who can provide the most seamless experience. 

TOOLS AND RESOURCES.

For budgeting tools, cash-flow calculators and growth strategies for every business stage, head to Bank of America’s Center of Business Empowerment. There are additional resources on securing capital and risk management, too. 

To benchmark your plans against industry trends, download the annual Business Owner Report, also from Bank of America. “Use it to evaluate your business and identify opportunities for innovation,” said Karamoutsos.