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5 common payment and invoicing problems currently faced by auction businesses

April 24, 2024

5 Min read
5 common payment and invoicing problems currently faced by auction businesses

In today’s tech-driven business landscape, transactions are primarily conducted in digital space, making data protection and cybersecurity high priorities for all organisations. In fact, according to Juniper Research, digital card transactions will exceed 121 billion by 2027. So, ensuring safe, swift transactions is more important than ever.

For auction businesses, effective payment and invoicing is essential to long term success and it typically involves the integration of third-party systems. Let’s take a closer look at five common payment and invoicing problems facing today’s auction businesses.

Fraud and security risks

As digital transactions become the norm, auction businesses increasingly grapple with the threat of fraud and cybersecurity breaches. A report by CyberSource noted that online fraud attempts have surged, with businesses across industries experiencing a significant uptick in fraudulent activities.

Auction businesses, in particular, are vulnerable due to the high-value transactions and the international profile of many clients. Implementing robust fraud detection and prevention mechanisms is crucial, yet remains a challenge for many, especially small to mid-sized auction houses.

It’s for this reason that the Artisio platform is designed to seamlessly integrate with secure and reputable third-party platforms – so that your supply chain maintains a healthy balance with any undue exposure to risk minimalised.

Complex international transactions

Auction businesses often deal with buyers and sellers from across the globe, bringing about the challenge of handling multiple currencies and complying with various international payment regulations. The complexity of cross-border transactions, including currency conversion fees, international taxes, and compliance with foreign financial regulations, can be daunting.

According to a report by PwC, navigating the regulatory landscape of international trade remains a top concern for businesses engaged in cross-border activities.

Delayed payments

Cash flow is the lifeblood of any business, and auction businesses are no exception. Delays in payment, whether from buyers or through consignment agreements with sellers, can significantly impact operations.

The challenge is exacerbated by traditional payment methods, which can be slow and cumbersome. A survey by the Electronic Transactions Association found that nearly 60% of businesses cite delayed payments as a significant cash flow challenge, underlining the need for auction businesses to adopt more efficient payment solutions.

Invoicing errors and disputes

Invoicing in the auction industry is fraught with potential errors, from incorrect billing details to disputes over final hammer prices and buyer’s premiums. Each error or dispute can delay payments and erode trust between the auction house and its clients.

The complexity of auction transactions, involving multiple items, variable prices, and buyer’s premiums, makes accurate invoicing a significant challenge. Research by IBM indicates that manual invoicing processes have a high error rate, leading to increased disputes and reconciliation efforts.

Lack of integrated payment systems

Integrating payment systems with auction management software is essential for streamlining operations and providing a seamless customer experience. However, many auction businesses struggle with disjointed systems that require manual reconciliation and data entry.

This not only increases the risk of errors but also slows down the transaction process. A study by Forrester Research highlights that businesses with integrated payment solutions report higher customer satisfaction and operational efficiency.

Solve your payment problems with Artisio

Navigating the complexities of payment and invoicing in the auction industry is a formidable task, and one that must be tackled head-on.

Embracing Artisio’s auction management software can provide your auction business the framework and safety net it needs to thrive in the digital age. Artisio provides a centralised, single platform designed exclusively for auction management, allowing you to save on time and resources while enjoying the peace of mind that comes with secure payments and invoicing.

Discover more about how Artisio can support your retail organisation by booking a demo today.

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