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Kabbage Payments: What You Need to Know

Kabbage Payments What You Need to Know

Small businesses can use Kabbage Payments to accept online bill payments. They can also use it to request payments using a custom payment link.

  • Through new technology solutions, Kabbage Payments reduces the time it takes for small businesses to get paid, with many remittances received within 24 hours.
  • Prior to Kabbage Payments, around two-thirds of Kabbage customers reported that they waited up to 90 days to receive payment from customers.
  • Kabbage offers a suite of tools for payment processing, billing, cash flow management, loans, and more.
  • This article is for small businesses considering using Kabbage Payments as a payment processor.– One of the most important things a business needs to be successful is a steady cash flow. Receiving payments and processing them in the corresponding accounts is the key to a company’s survival; however, entrepreneurs often have to wait weeks, or even months, to get paid. In 2019, Kabbage launched a new payment processing solution designed to dramatically speed up that process, called Kabbage Payments. What can SMEs expect when using Kabbage Payments?

What are cabbage payments?

Kabbage Payments is an online payment platform supported by the small business lender Kabbage. It has online billing and payment processing tools that allow small business owners to get paid quickly – transactions processed before 5pm. Eastern time is deposited into the company’s bank account on the next bank business day. This is critical for many small businesses that depend on fast and reliable bill payments for cash flow.

Kabbage Payments is part of the Kabbage family of small business financial products. Founded in 2011, Kabbage offers flexible trading funds and free checking accounts in addition to the Kabbage Payments platform. It was acquired by American Express in August 2020.

The company promotes Kabbage Payments as a “small business payment processing solution that makes receiving payments faster, as simple as sending a text message.” Company reps say the service makes one of the most frustrating parts of owning a business a little less burdensome.

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“Since 2011, we’ve helped hundreds of thousands of small businesses access over $ 8 billion in funding,” said Rob Frohwein, CEO of Kabbage, when Kabbage Payments launched in 2019. Get paid. Kabbage Payments not only expands our suite of products, but the very definition of our company. We deeply believe in the mission of small businesses and understand what they need to be successful – more time to build their business and less time to worry about cash flow. ”

What does Kabbage Payments offer?

The main idea of ​​Kabbage Payments is to speed up the entire billing and payment process. Prior to the launch of the platform, Kabbage tested the service through a beta program with some existing members.

In a press release from Kabbage, real estate investor Lee Brewer said the service eased the problems it had been having for years. “My clients get dozens, if not hundreds, of bills a month, so it’s easy to pile up and get paid all at once,” he said. “For years I have been waiting 15-30 days to get paid for my work. Now I send clients my personalized Kabbage payment link via email or WhatsApp and they pay me the next day. This helped me to be paid very quickly; my cash flow worries were eliminated, seemingly overnight. ”

The brewer is not alone. According to Kabbage, about two-thirds of its 200,000 customers use invoices but “wait up to 90 days to get paid.” You may have to wait for payment, but expenses like rent and utilities have strict deadlines. To address this, the company says Kabbage Payments is a “fully automated working capital solution”. Leveraging current technology, Kabbage Payments “dramatically reduces the time it takes to receive payments on typical net forward billing.”

Deposits via Kabbage Payments are in the company’s bank account the next day, although they must be processed by 5pm. m. È T. Any subsequent transactions will be deposited within two business days.

Kabbage Payments manages this short response time by managing invoices online via an all-in-one dashboard. In addition to creating a custom URL for their business, users can send secure payment requests via SMS, email, or the web.

The company also offers a billing solution. Once your business starts using Kabbage Payments, you can send unlimited invoices and quotes with no monthly fees. The only fees you pay are credit card processing fees for payments received through the service. Kabbage currently offers a 2.25% discount rate through June 30, 2021, after which transactions will cost 2.9% plus 25 cents per payment.

Other services offered by Kabbage Payments

These are some of the other services that Kabbage Payments includes:

  • Commission-free billing tools. Kabbage provides each customer with a unique business URL that makes it easy for customers to bill and collect payments. Your customers can make partial or full payments of their invoices at any time.
  • Automatic payment reminders. You can set up automatic reminders to send to customers with outstanding balances.
  • Gift certificates. Through Kabbage Payments, you can purchase gift cards worth between $ 15 and $ 500.
  • application tools. You can access trading tools on the go through the Kabbage app, available on the App Store for iPhone and iPad and on Google Play for Android devices.
  • Customer care. You can contact Kabbage Payments customer service by email and you will receive a response within 24 hours. Telephone customer service is available seven days a week, with extended hours on weekdays. There is also an online help center and a resource center.

Key Takeaway: Kabbage Payments offers billing tools, including automatic payment reminders and gift cards. You can access Kabbage Payments via a web browser or the company’s mobile app.

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