Suppliers count on your Online Marketplace to drive customers to their products and to be paid quickly and efficiently. As the network operator, you face many challenges:
- You need to support multiple payment methods, optimized to the various geographies of your suppliers – PayPal, wire transfer, ACH, check, e-check or global ACH, prepaid debit cards, Western Union, etc.
- Many of your suppliers prefer payments in local currency. You need to be able to offer payments in both USD and those currencies.
- Collecting all of the information required by the local regulations to successfully complete a wire payment can be daunting – IFSC code in India, tax ID in Russia, Sort code in the UK, etc.
- You must comply with all tax related requirements – collecting W-9 for U.S. companies and invoices from suppliers while withholding payments to payees that did not submit the required forms.
- You must comply with AML/Anti-terror/Anti-narcotics regulations that require you to validate each supplier against “black-lists” databases before you pay.
Hundreds of supplier payments to complete each month; satisfying payment demands from suppliers from all over the world; dealing with 3 or 4 banking institutions every time supplier payments are made; overloaded accounts payable staff handling hundreds of invoices, rejected payouts, ensuring tax compliance. If this sounds familiar, the solution is here. Tipalti understands online marketplaces and their unique needs. From offering the widest range of payment methods, and collecting the needed tax forms from each supplier, to handling payments in the supplier’s local currency.
Tipalti’s enterprise-class payout platform addresses these needs via a very simple interface that hides all the complexities, ensures the correct information is gathered from suppliers, and even communicates on your behalf with payees when payments are made or if information is missing.
Not only does Tipalti reduce the workload associated with payouts by at least 50%, it also saves you tremendous amounts of money. Since the payee pays the transaction costs (you can configure it differently if you wish), the cost to you as the payer is negligible.
The Tipalti solution is completely white labeled and appears as part of your marketplace website, maintaining your brand, while strengthening your relationship with suppliers.
To learn more about online marketplaces, click here.