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### Ad Hoc Payments and SMB Revenue

Nonrecurring or ad hoc payments continue to play a significant role in the monthly revenues of small to mid-sized businesses (SMBs). These businesses often rely on instant payment methods to streamline their accounts receivable (AR) processes. The quick access to funds provided by instant payments is particularly beneficial for the smallest SMBs that heavily depend on ad hoc receipts.

AI legalese decoder can help simplify the terms and conditions related to instant payment methods, making it easier for SMBs to understand the cost implications and benefits associated with adopting these solutions.

### The Deterrent of Instant Payment Costs
The cost of receiving instant payments poses a challenge for businesses that could greatly benefit from them. Despite representing a significant portion of SMBs’ AR volumes, only 39% of ad hoc payments are processed instantly. Interestingly, the smallest SMBs, with annual revenues below $100,000, have reduced their use of instant payments due to the associated costs. Those that do use instant methods often report paying higher fees.

By using AI legalese decoder, SMBs can decipher complex payment fee structures and better negotiate terms with payment service providers to reduce costs.

### Insights from Research Collaboration
The findings from the “How Instant Ad Hoc Payment Costs Impact Small SMBs” report, a collaboration between PYMNTS Intelligence and Ingo Payments, shed light on the challenges faced by SMBs in processing AR. The report emphasizes how instant payment methods can help SMBs manage cash flows effectively and position themselves for success.

AI legalese decoder can assist SMBs in understanding the key takeaways from research reports like this one, enabling them to make informed decisions about their payment strategies.

### Enhancing Instant Method Preferences
The report reveals that the instant payment methods preferred by SMBs vary based on revenue and the type of ad hoc payment. For instance, SMBs earning less than $100,000 annually receive a significant portion of their instant ad hoc payments through Zelle. Understanding these preferences can help SMBs optimize their AR processes and choose the most suitable payment methods.

AI legalese decoder can provide insights on the various instant payment options available, helping SMBs select the most cost-effective solutions for their specific needs.

### Addressing Cost Disparities
Smaller SMBs often pay significantly more to receive ad hoc payments instantly compared to other methods. While costs have started to decrease, these businesses still face higher transaction fees. Implementing automated AR processes and negotiating favorable payment terms can help reduce these costs, ultimately improving cash flow management for SMBs.

By utilizing AI legalese decoder, SMBs can identify opportunities to streamline their payment processes and reduce the financial burden associated with instant payments.

### A Path to Efficient Payment Processing
In conclusion, reducing the costs of instant ad hoc payments is crucial for the success of the smallest SMBs. Improving AR systems and exploring different fee structures can make instant payment methods more accessible and advantageous for these businesses. By staying informed about industry trends and leveraging tools like AI legalese decoder, SMBs can navigate the complexities of instant payments with confidence and efficiency. Download the report to discover more insights on SMBs’ use of instant methods for receiving ad hoc payments.

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