Dynamics Corner
About Dynamics Corner Podcast "Unraveling the World of Microsoft Dynamics 365 and Beyond" Welcome to the Dynamics Corner Podcast, where we explore the fascinating world of Microsoft Dynamics 365 Business Central and related technologies. Co-hosted by industry veterans Kris Ruyeras and Brad Prendergast, this engaging podcast keeps you updated on the latest trends, innovations, and best practices in the Microsoft Dynamics 365 ecosystem. We dive deep into various topics in each episode, including Microsoft Dynamics 365 Business Central, Power Platform, Azure, and more. Our conversations aim to provide valuable insights, practical tips, and expert advice to help users of businesses of all sizes unlock their full potential through the power of technology. The podcast features in-depth discussions, interviews with thought leaders, real-world case studies, and helpful tips and tricks, providing a unique blend of perspectives and experiences. Join us on this exciting journey as we uncover the secrets to digital transformation, operational efficiency, and seamless system integration with Microsoft Dynamics 365 and beyond. Whether you're a business owner, IT professional, consultant, or just curious about the Microsoft Dynamics 365 world, the Dynamics Corner Podcast is the perfect platform to stay informed and inspired.
Dynamics Corner
Episode 401: Optimizing Accounts Receivables in Business Central
💲💲💲It's all about the money, money, money!! 💲💲💲
While many providers are focused on A/P streamlining and efficiencies, the folks at PayStand want to make sure you get paid! In the latest episode of the Dynamics Corner, Brad and Kris chat with David Gersten and Danny Hosea to talk about the game-changing benefits of PayStand for Accounts Receivable functions.
Here are just some of the perks you get with PayStand:
💰 Seamless integration with Business Central.
👜 Automated A/R process to reduce manual work.
💸 Quick payment solutions to boost cash flow and collect faster.
💳 Fee mitigation to help you save on transaction fees.
🤑 Dedicated support from PayStand's team.
🛄 Partner relationships to help you integrate smoothly.
💼 Discover how PayStand can revolutionize your payment processing and drive significant ROI.
#MSDyn365BC #BusinessCentral #BC #DynamicsCorner
Follow Kris and Brad for more content:
https://matalino.io/bio
https://bprendergast.bio.link/
Welcome everyone to another new episode of Dynamics Corner. Why not get paid on time, brad? Why AR payment is an afterthought. Perhaps it shouldn't be in an implementation. So stand up, own your pay. Sorry for the dad joke, I'm your co-host, chris.
Speaker 2:And this is Brad. This episode was recorded on January 6th 2025. Chris, chris, chris, look at you coming out with a dad joke. Look at this, it's a new year and we're still here and sitting in the Dynamics Corner chair. See, you had a dad joke. I had a little rhyme. Here we are with the first recording in 2025. And with us today, I had the opportunity to learn a lot about AR collections and payments within Business Central. With us today, we had the opportunity to speak with David Garrison and Danny Hossa from Paystand hello, david, danny, good morning, good afternoon.
Speaker 3:Happy new year. How are you both doing?
Speaker 2:doing well, happy new year you know, happy new year this is. We were able to take a small break for the holidays. This is our first recording for the new year, so you were the first guests for the new year. But I always have the question and someone asked me the same question yesterday how often or how long do you say Happy New Year? Is it the first time you see someone after the new year Through the end of January? Is it the first two weeks I had the new year through the end of January? Is it the first two weeks? I had a long conversation with someone about this last night. I think it's the first two weeks. The first two weeks.
Speaker 2:The first time you see somebody, or if I talk with you again tomorrow, do I say happy?
Speaker 3:new year again it's gotta be 30 days, man. 30 days, the full January, I think. If it's the first time you're reaching out or talking, mention it within the first 30 days, I think after that it's a little bit, it's old news.
Speaker 4:Well, I said I was at doctors this morning. I said it to them and I kind of felt awkward saying it because I'm like like it's already been a week, know, but they appreciate it.
Speaker 2:Well, that adds a twist to this conversation or to this question. Do you base it on how well you know someone? So in the case of when you're going to the doctor, you may not speak with the receptionist regularly? Or maybe a different type of relationship may not be a business relationship where if you're having a for reference, a sales call with a prospect, you may say Happy New Year just because of formality, versus someone who's doing reception or intake at a medical office you may not say it to. It doesn't matter who it is.
Speaker 4:No, I think it also matters where you are, because one of the things we learned in Idaho when we moved here, it was kind of like if you say I hope you had a good day, or have a nice day, or you know how are you doing, like you better be ready to hear the answer, like because they just they just converse, like you know the lady at the, the clerk at the market. You're like hope you had a good day and she's like, oh no, let me tell you about my day. Like I don't really care. Do you really care? Did I really need to know about you, know everything that happened on your way? So like, be prepared to hear where, like I remember in LA, like people don't even stop at stop signs. So like why would they care?
Speaker 1:Stop sign You're saying they can't read.
Speaker 4:It's just so self-centered, Like it's, like you know, it's the self-centeredness versus the really legitimately caring, you know I think I've seen the difference being in California and being in other states, that how kind people are.
Speaker 3:You know strangers.
Speaker 2:Where.
Speaker 3:Versus people outside of California usually, and then people in California. You know not as much acknowledgement or care for. You know a person's day.
Speaker 1:There's a saying that Brad and I talked about this. You know, people in the West, primarily in California they're nice but they're not kind. People outside of that state nothing against California, by the way they're not nice, but they're very kind.
Speaker 2:No no, no, no, you said it wrong.
Speaker 4:That's really interesting, no, you said it wrong. You said the West Coast of.
Speaker 2:California. They're kind but they're not nice.
Speaker 1:Right, no, they're nice. They're nice, they'll support you, but they're not really kind. There's no intent. They just say, hey, how are you doing Bl tent? Uh, they just say, hey, how you doing blah, blah, blah? But they're like, yeah, I don't really care.
Speaker 2:And then the east coast, right specifically the northeast. They're kind, but they're not nice, right?
Speaker 1:yeah, like new yorkers, for example, they sound like they're yelling at you, right, they're like they don't, they're not. That's not very nice, but then like they're very, actually they're kind.
Speaker 4:Yeah, we have big hearts I had a sales job where I was calling into credit unions and financial institutions in the Pacific Northwest and they literally would call me back to tell me they're not interested. And I was like shocked. I'm like wait, you guys are real close. And I was like Chris, you know, you've been in the Northwest BMW. But then I also interviewed for a job once that was in East Coast territory, but it was a West Coast company, but it was going to be in East Coast territory. And they were like there's no way, david, you could sell to East Coasters Like they will just eat you alive. You just don't have the. You know, you don't have that, even though I was born in Schenectady, you know I spent six months there, but that was it. Yeah, that Boston or that New York like selling to them. It's like you know no fluff, just you know cut throat, cut throat.
Speaker 2:You know so that was funny that there is a there is truth to that, because in my travelings I have to go back to it. Chris, you left out the other piece to this. Then you said the Midwest they're passive, aggressive.
Speaker 2:Yes. So I mean we kind of butcheredered that statement but you should have to go the whole thing. So the west coast they're kind nice but they're not kind. East coast they're kind but they're not nice. And then the midwest is just passive, aggressive. And I heard something interesting. I'm gonna go back to david's comment. So I heard something interesting this morning that you know this whole talk about. I'm not bringing politics into it. There's a reason why I'm saying this, with this whole comment of Midwest being passive, aggressive, that you know, canada being the 51st state. But for the first time I heard somebody talk about how Canada should buy Minnesota and I said they should take Minnesota and Wisconsin and I'd be happy we should give them to them, we should pay them to take Minnesota and Wisconsin.
Speaker 3:I don't care what anybody says. Are you the one that posted that on LinkedIn?
Speaker 2:I did not post that.
Speaker 3:No, I saw something recently.
Speaker 2:Yes, I heard it on the news this morning. They were talking about it and they were talking like the probability. I don't want to get into the whole thing, but I just said it because of you know the whole.
Speaker 4:Chris knows, my Midwest Minnesota, wisconsin. The converse of that was like we'll take all of Canada except for Toronto and Ontario. I think there's similar disbelief, you know dissatisfaction from different areas within each of the territories.
Speaker 2:I think Toronto.
Speaker 4:It would solve our payments issue. If we did, you know we'd have no more USD and CAD issues.
Speaker 1:Simplifies things.
Speaker 4:It would simplify currency. You know I wouldn't have customers asking does PayStand support? You know Canadian, you know territory.
Speaker 2:But it does say a lot because they're talking Canada could be its own state. So there really has to be nothing there, because I think as big as it should be, it should be about 40 states.
Speaker 4:It's five provinces, isn't?
Speaker 2:it. I believe so.
Speaker 4:So I mean you at least make. I've never been to directly north of Idaho, wherever it is, but it's totally different than Quebec. Each of them operate very, very differently. Some of them speak a different language. Some of them require you to have spikes on your tires during winter and some of them don't. I mean, there's very different climates, very different that is true but the same could be said for the united states.
Speaker 2:I mean, we have 50 of them, right, chris? Anyway, enough of that. Thank you very much. Uh, again. So start over, chris, rewind, it, don't put any of that stuff in, right? Danny david, happy new year. It's nice to see you both again. It's been a while. I had the pleasure of seeing you both in San Antonio, which seems like so long ago, and I've been looking forward to speaking with you ever since then. And before we jump into the conversation, would you mind telling us a little bit about you? I'm full of fire today, so be ready, ready. Like it's the first recording of 2025 good thing I didn't say 2024 and it's hump day. Uh, yeah, we're coming over the hump. I'm further over the hump than all of you, by the way yes, by a couple hours.
Speaker 2:That works out well, three hours we, um we're.
Speaker 4:So, as the first recording of the, we have to set this bar pretty high, right.
Speaker 2:I said that, yes, right, because now or you could set it really low and then everybody else would sound really well, but I think with the two of you, setting the bar low would be a challenge. So we're going to set it really high for today's conversation. And before we jump into the conversation, would you mind telling us a little bit about yourself, mr David?
Speaker 4:Yeah, david Gersten, I'm based in Idaho. They call it God's country. It's real interesting. I've been here about three years. My day job. I'm the director of emerging ecosystems here at PayStand. That means I run our Microsoft and Acumatica practice, both sales and channel. I've been in the Microsoft or ERP space about 14 years, came into it from selling cell phones to a Microsoft nav practice and they said what the heck are you doing selling cell phones? You need to get back and sell real stuff, which I primarily have always sold millions and millions of big contracts. So I didn't even know what an ERP was. But yeah, I spent 10, 11 years at VARS and a couple years in the ISV space. I'd say primarily Microsoft. I kind of come from that space. Personally, I'm a dad of two plus a dog. We have two adults now an 18 and 20, almost 21-year-old.
Speaker 2:You are done as I call it.
Speaker 4:You are done Like now life begins, so everyone have children early, so that you can be young.
Speaker 4:They're starting their own little company selling hype gear um hype wear, and they established their company last night Um this site, so real excited that they're like working together. It's fine, like to see two siblings actually finally get along after 18 years of watching them beat each other up. It's just exciting to see that. So that's my life. I have a dog, I love outdoors, I love community, I love sushi People know that and my big fan, my new thing is jelly roll jelly roll I am, I am, I, I cry listening to joe we're just, we're ending the discussion now, yeah,
Speaker 2:because, that's the way. Oh see, now I think we're just going to talk about various things. So you have a day job, you have a night job.
Speaker 4:I'm full of fire today. So, danny, you just be prepared with what you say my, my wife and I are looking at some investments, uh, that hopefully will come through in the next couple months and that'll kind of be her thing and but I'll support her. But my, my night job is I'm a, I'm a father, I'm a, I like the Seahawks, I listen to music, nice, I cook, you know.
Speaker 2:And Idaho is called God's country. Do you know the reason behind that? I don't. I was just asking. I hear some of these sayings yeah, no, it's really interesting.
Speaker 4:I think it's in the wrong section of the country. I think it should have been like a Bible Belt state based on, you know, driving around and every corner has a church and every you know it's a very interesting farm and churches. That's what's here. I need that life, but I don't need the cold.
Speaker 2:No, I like the small town farm.
Speaker 4:Yeah, I remember I'm the Jewish white southern california the last 30 plus years. And now I'm like david, I think.
Speaker 1:I think it has a lot to do with the lds churches up there.
Speaker 4:There's quite a bit yeah, yeah, utah um, idaho was founded by a lot of the lds group moving West through Utah, from Utah.
Speaker 1:So yeah, the only reason I know that, cause I've got a ton of family down in Idaho, Wyoming and Utah.
Speaker 4:I don't believe you anymore LDS population?
Speaker 2:Yes, yes, I do not believe him, because it doesn't matter where we go, who we talk to he's like oh. I have a ton of family there. Like you, name the state and he'll tell you he has a ton of family there.
Speaker 3:Like you can think of it, even outside of the states. He's like I've got a ton of family in Canada.
Speaker 2:I'm going to go up to Vancouver. I'm going to stay with a ton of family. I'm going to Texas.
Speaker 1:I'm going to stay with validate the claim. That's why, if I plan to move, I have to choose a state where I have no family, like, for example, south Dakota would be a one of them, because I don't have family over there. So if I plan to move a state, that's one of my options.
Speaker 4:Then you'd be. You have to become really passive, aggressive.
Speaker 1:Yeah, that would be tough.
Speaker 2:That would be the end of this podcast Together. We'd do our own Last question on the intro, because poor Danny's over here waiting to speak and she probably forgot what she was going to say.
Speaker 4:What is Hypewear? Hypewear, it's kind of like Supreme clothing rappers, musicians.
Speaker 2:So it's a clothing company that they're starting. Are they doing their own?
Speaker 4:It's a style. Yeah, so they have a bunch of different brands that they are buying at very reasonable costs and they're reselling.
Speaker 2:So they're reselling clothing through a store called hype wear.
Speaker 4:Through social media. Basically, you do a lot of Instagram posting. You go to concerts, you go outside, you know, you go to festivals and you send me a shirt and I'll wear it?
Speaker 2:Yeah, no, I will, but yeah thank you very much, and we'll go back to the other. We might not even get to what we wanted to talk about today with everything the way everything's going. Danny, how about you Tell us a little bit about yourself?
Speaker 3:Am I there? Be ready. All right, I'm ready. Dani Ozy, I'm based in California. I've been with Paysand for about three years now. It was my first job out of college. I started in the sales development side of the house for the first couple years, then eventually moved my way into the partner channel. So I'm now managing our Microsoft and Acumatica partner relationships and I've been in the channel in the Business Central channel for about a year now. So I'm kind of a new kid on the block. But David's been definitely showing me the ropes. I've learned a lot from him, but I love meeting new people and relationships. I'm just learning to apply that to my work and this channel and super excited to kind of embed more into the Microsoft community. But as far as more personally, I spend the majority of my time outside of work with my animals. At home I have horses and dogs and plenty of little creatures to take care of.
Speaker 2:Horses yeah, I want a horse.
Speaker 3:I love it. They're my daily therapy and it's very nice to sleep off.
Speaker 1:What kind of horse?
Speaker 3:I have a Spanish Arabian. His name is Moose.
Speaker 2:And you get to ride. I've never been to. California, by the way.
Speaker 3:There's a lot of horses out here, a lot of land, a lot of fun and you're there side of California. I'm in Central Post Santa Cruz and yeah, there's a big horse community out here.
Speaker 4:We have to debate about that. We have to take out a map.
Speaker 3:If it's central, oh, yeah, David argues with me.
Speaker 4:We would always call San Francisco the Bay Area. It's Northern.
Speaker 1:California, but it actually is if you look at the map?
Speaker 3:yes, a little bit south it's smack dab in the middle of the state on the coast, so it is known as the Central Coast. So I had that argument with David. I think I won that one. I circled it on the map, I was like this is where I'm at you measured it.
Speaker 2:Chris on the edit pull up a map so I can see where this is. We'll pull it up and zoom in on San Francisco and Danny's area. So you have a horse. That must be amazing. I had chickens. I miss having the chickens. I wanted chickens and goats. I'm contemplating getting them again you should. Eggs are expensive right now Eggs are expensive, but I'm getting older and it's a lot of work to take care of animals. But chickens you can stay outside with chickens invite other animals well, that's the other thing.
Speaker 2:I never had a problem with the chickens. We had a lot of coyotes and wolves coming around. Some people say they have rats will come around because of the food that gets left over. It depends. I mean, mine were far enough out in the woods and we had some hawks coming around every now and then, but they, they were fine.
Speaker 3:Uh poor little guys are really susceptible to any kind of predator. We lost a lot of chickens growing up in my life and I. I created such close relationships with them too, and I was so. I was my girls.
Speaker 2:I had 18 of them. I had roosters and they used to even hatch. I used to hatch chickens too, naturally, like the chickens would on them. A couple of them decided they didn't, because a lot of stuff gets bred out of them. They say, when you buy the chickens because you buy them for meat or you're buying them for egg production. And I was fortunate that I had a couple that still had that motherly instinct and I would leave one of the boxes with the eggs in there and they would sit on them and if they would hatch, they would hatch, and if they didn't, I would just take the eggs and throw them back and they would eat them.
Speaker 2:Welcome to the channel. You've been in for a year. It's a great community. We're happy to have you in. I too have a pleasure meeting everybody and I like to see you know, with Business Central taking off as it is, with the growth, to see many of the new members coming in is great. I enjoyed speaking with you and meeting you in San Antonio as well. And you guys have talked about Acumatica. Do you want to know for the first time? I looked up what Acumatica was the other day.
Speaker 1:I really didn't even know what it was.
Speaker 2:I didn't know how big it was. I didn't know a lot about it. I had a stint in Acumatica?
Speaker 1:No, you didn't.
Speaker 3:For a year.
Speaker 1:yeah, it was like early stages of Acumatica Cloud ERP. Right, they were like the Cloud ERP. I did some work for a client up in Vancouver area implementing Acumatica and they were moving away from NAV so that was very fun to do. So I did that for a year. But yeah, acumatica.
Speaker 4:It is a really interesting community. I love it. It really reminds me of the old GP community and partly it is because there is such a huge crossover. When John Roscoe left Microsoft and went and became the CEO of Acumatica, you know, and Microsoft didn't have a cloud product at that time he basically cannibalized the GP partner community and paid them very, very well to move GP customers to Acumatica and that's kind of where it gained its momentum. But it's very small, very community, you know very tight community which is now like the BC community, has become very similar to.
Speaker 4:I think they kind of there's that argument of you know which community is closer? And you know, you know, if you know, I've been in a lot of both GP rooms and BC rooms and there's definitely different personalities as you cross those. But I find the community at Acumatica is really close. The product itself is solid. It's got its own industry version, it licenses differently, but I think it serves a very same ICP.
Speaker 4:You know the ideal customer profile for Business Central is very close to an Acumatica customer and I think a big difference is, like you know, I remember when I was selling Business Central, if you were a Google shop, you know, and you're a G Suite and not an office shop, some of the value, some of the value of Business Central goes away and Acumatica is more agnostic. It doesn't really matter what you're operating. You know if you're heavy in Excel or Teams or Power BI or all the things that are great with the Microsoft stack and Business Central, I'd say you know if you're a Google sweet shop and you don't need a huge like NetSuite's a bit more robust, I think than an Acumatica lift.
Speaker 4:So it really fits that like smaller mid-size, but I mean we're talking to a $350 million company right now.
Speaker 2:For Acumatica.
Speaker 4:I think on Acumatica, I think every solution has a customer.
Speaker 2:I mean, I think every product can have a customer. I don't think there's one size fits all and I think, as we talk about regularly, I think choosing the right tool to do the job is what's important, and I know we have some bias for Business Central. I know I do at least.
Speaker 1:But it's called Dynamics Corner.
Speaker 3:It's way off the Acumatica. No, no, we can talk. Listen, I am an equal opportunity, promoter of everything.
Speaker 2:Because in order for any of us to be successful, we need to have an understanding of what's out there. Because if I am going to compare something between somebody, see, I'm losing my steam. If I am going to compare between Business Central and Acumatica, I need to be aware of Acumatica and if I'm going to do the proper thing for a customer, I should be able and they want to know about the two. If I could give them some information there, I should be able to give them some alternatives.
Speaker 4:I mean they did a really cool thing. They've got these industry overlays. I mean they came out with industry overlays this year. They're additions, they call them. So if you're a professional services company, then this is the Acumatica you're going to get. It's the same Acumatica, it's just skinned a little differently. It has different out-of-the-box functionality, more designed to a vertical, and I mean Business Central can be doing that really strongly, but they're relying on the partners to come out with a version of. You know, I'm going to be the construction version of business central, um, and you skin it however you want it.
Speaker 1:It's like powered by business central right, like this product powered by you just go.
Speaker 4:It's askew and acumatical.
Speaker 2:There's some psychology behind that, because I remember early on in my implementations I worked with companies in a specific vertical and they thought that that vertical was so complicated and they had like industries, not industry. They had like specific rules and challenges from everybody else. Do you want to know what they were? They were a manufacturer and I tried to explain to them. I said you can make a calculator or you can make your product. I said you still have a bill of material, you still have routings. You know it's all the same and it's called evidence and credit.
Speaker 4:Right At the end of the day, it's evidence and credit. It's a different name.
Speaker 2:I mean, you're still manufacturing and producing and forecasting how people who are making a different product and I don't speak light of that. Now there is some industry knowledge in some areas and how they come up with certain things, but ultimately, as we're talking about, it's the same. Last question, attica, because then I want to learn a lot about the both of you real fast.
Speaker 4:I do. I run a um erp. What is erp session for our onboarding? So we have like six new hires. I'm doing one tomorrow. It's an hour-long session for our company and I just say like, at the highest level, it's the front door to the back door of the building of a business, like everything comes in from the front door and goes out the back door. It doesn't matter what you're delivering, but that's what it is. It could be services, it could be services, it could be a product, it could be a project, it doesn't matter. But that ERP system allows you to do everything from your front door to your back door.
Speaker 2:It is a great way to put it. I like that. And last question for Acumatica Does Acumatica have the same extensibility or development that Business Central has, or is it something that you implement and you get what you get?
Speaker 4:It's configurable. There are developers that can deal with With it. It is based, from my understanding, on the technology that SL was built on. So the SL team, the Solomon team, actually is what the software architecture is built on Interesting. I don't know, I'm not a developer, but that's what I understand. So for our solution we're leveraging APIs, got it Like, yeah, very API-driven, if that helps. But it's not like that Lego block that I describe you know Business Central as a stack of Lego blocks. You know Business Central. Microsoft gives you all the blue ones, which is the core application, and you are an ISV and you, or your part, you want to do something different. You open it up, you put your yellow block in there and now that yellow block comes out during the upgrades. Hopefully it works when it goes back in. If not, it's sitting on the side, someone steps on it and hurts their foot and the blue ones continue.
Speaker 2:That's another great analogy. I have the red ones and the green ones over here.
Speaker 1:You can have the yellow one yeah, I did have to look it up because I, you know, trying to think back of how it was developed I didn't do any development against akumatica, but it looks like it's. They are running on c sharp dot net and aspnet. They do have their own platform framework called xrp um, but they also use html5 things like that.
Speaker 2:So yeah, and this is why we have chris gpt say I have to, I usually stall, just enough for him to look this stuff up and give us the facts he's 2025 he's pulling through. So we we had a little bit of talk. But now, paystand, we had the opportunity to speak with you before uh, new year, new, uh, new crew. In some sense we have now have the addition of danny with us. Can you tell us a little bit about paystand and how paystand can benefit somebody who's using business central? You want?
Speaker 3:me to take that one, david, I'd love to let's do it elevate a pitch all right. Well, it'll be a little longer than 30 seconds so uh well, yeah, we're.
Speaker 3:We're an accounts receivable automation and B2B payment solution that integrates natively with Business Central. We all know AR is a super crowded space, but I'd say that the three main differentiators of our solution consists of a few concepts. So that first concept is getting your revenue in the door as quickly as possible. That first concept is getting your revenue in the door as quickly as possible. So by offering click-to-pay links on invoices, offering more digital payment options, enrolling your payers in auto-pay or collections plans, we can really help merchants speed up that time to cash and get those payments in the door faster.
Speaker 3:That second concept is fee mitigation. So typically when a merchant is trying to present a credit card fee to their payer, you want to have an alternative option. That way they're not reverting back to maybe writing a check, because that slows down your revenue collection and increases their day sales outstanding or DSO. It also still requires merchants to do that manual reconciliation on the back end. So we are the only AR solution in the market today that's actively trying to move payers away from credit cards onto our free network. For those credit card payments, we encourage our customers to pass a convenience fee to their payers if they choose to pay by credit card. But the cool thing is, if the payer does not wanna absorb that fee and pay that fee, they have our free B2B network option to use instead. So you kind of have these different levers that the merchant can pull to drive the profitability of their company in a way for them to mitigate fees without necessarily burdening their payers with them.
Speaker 3:And then I'd say that third concept is just the automation that happens downstream of invoice creation. So we like to say we pick up the baton after the invoice has been created in Business Central and then we automate both the cash application as well as the deposit reconciliation. Traditional AR providers they typically stop their automation process once that cash is applied. So we do take it kind of that one step further and automate the deposit reconciliation, which is another super manual, painful process in the AR process. So when our customers hear that we can automate that portion to it, you know they get pretty excited. You know they get pretty excited. Obviously this is all pretty high level. But I'd say those are the three main features that kind of differentiate us and what can add value to someone's business central environment.
Speaker 2:And I have to agree with you. I think those are three very important points that you had brought up, or three important parts of the AR process to help, you know, bring in cash in the door. I know all the implementations I go through. When you get somebody live, you go live through an implementation. That's one of the most important things is we need to be able to ship our product, invoice our customers and receive cash. So anything you can do to speed that up is of great benefit. I like the fee mitigation as well that you had mentioned too, and I don't even understand here why in the US with as great as it is why we still use checks.
Speaker 2:Oh, it's awful, you know so having. I like to see solutions like this that move people away from that Because, as you had mentioned, I think it's easier for the cash application point of view. So, with the AI you mentioned, you have a free network and you can deal with the credit cards and the credit card processing. When it comes to payment processing, I'll use payment processing. I know it's for the accounts receivable side in this case. Is it if they have their own payment network already, can that work with yours, or would they have to switch over completely to your network that you have?
Speaker 3:yeah, so we act as both the gateway and the processor, so they would need to use us for for both services.
Speaker 2:Um, so that's kind of how that structure, how it's structured at least okay and for paystand to use the application that you have for the ar I'll call it ar automation to simplify it for this conversation. I want to get more into detail with this because I have a lot of questions about this from some recent conversations. Who is the target customer or which type of business do you think would benefit the most? I mean, obviously it's native that when I say native, it's integrated within Business Central so they don't need to use a separate product. Correct, correct. And is there a particular type of customer that this would be applicable to, or to a particular industry, or is this?
Speaker 4:I love that question, brad, and I'm going to step in because this is one of our challenges. We're the new kid on the block. We're trying to get like Danny said, it's a crowded space and you sit there and I see all these really cool successes that the VARs are doing. They're all talking about their best year ever and we closed 12 deals this quarter and celebrating all these wins. And then we don't get that phone call and we're like, well, like, isn't everyone collecting revenue? Like there isn't a company out there that doesn't collect revenue. You know why would they be in a business? Like there has to be a revenue source, I would imagine, for every company.
Speaker 4:So you start at that really high 30,000-foot level. Do you collect revenue and are you invoicing out of said ERP? Are you using Business Central to send out your invoices? So that's the first check mark. Then you come down to how many invoices, what's your volume, type of thing. So we kind of see customers that are doing 300 to 500 minimum invoices on a monthly basis and the reason we see that is because the downstream, upstream, downstream, whatever the results of those invoices create collection challenges. The higher the volume they are, there's higher collection issues. You have DSO problems. You have, you know.
Speaker 2:What is DSO?
Speaker 4:Day sales outstanding. So you know how is DSO Day sales outstanding? So you know how long is it taking people to get paid? So your AR agents, larger bank reconciliation, deposit reconciliation, cash application all of that increases the larger volume. So our ideal would be you know, lots of invoices, average-sized dollars, that's the best ROI.
Speaker 4:And then you look at things like you do. Look at are they having a problem with getting paid faster? Are they paying a lot in credit card fees? Because we don't negotiate credit card fees, we have a fee. It is what it is. We pass through basically the fees because that's not where we make our money.
Speaker 4:So our other competitors are oh, can you scrape a basis point off? Or can you save me one point? Can you do 1.99 instead of 2.19? For us it is what it is, because we don't want you to use the credit cards anyway. We want you to move it over. But if you do do the credit cards, we've given you a chance, an opportunity to add that convenience fee legally in all 50 states. It's not a surcharge. Big, huge difference because we offer a free network. There's an alternative way that the customer can pay. And now you're saying, hey, customer, share my burden and my cost.
Speaker 4:So at the end of the day, it's really. Are you collecting invoices? Do you have some manual labor, five, ten hours a week, you know? Are you spending working on cash application or collections, or recurring invoices? I mean, I put out a great little opinion in late. I think what was it?
Speaker 4:V25 or whatever, came out in October and they added, you know, deferred revenue and recurring payments Well, that's really. Or recurring invoices Well, that's really cool. But if you don't have something to autopay on the tail end, yeah, you're saving some time getting those invoices out. But with PayStand you have an autopay with a default payment style method and those checks, those invoices automatically get paid. Now, you know, with a free bank network, so it's really set it and forget it, you know. So if someone's using recurring payments, subscription payments, because a lot of times those you know are costly to manage the only thing that we really don't do is the forbidden. You know, there is the forbidden, prohibited list of industries and that's typically the banking. That's because of our sponsor banks that ultimately it's cannabis today, it's multi-level marketing, it's tobacco.
Speaker 3:Tobacco, firearms, firearms, all that fun stuff leaving out the fun stuff.
Speaker 4:Well, it's, it's fun stuff, no no one in idaho can be underwritten.
Speaker 2:No no, I understand those specific industries because there's other federal regulations around those products. It's not. You know, cannabis is one that's a challenge because it's not federally legal. It's legal in many states in the United States, so you know dealing with that. So, to go back to it, I heard a couple of things. One you said free, so I want to talk about free. So if I were to simplify this in Brad's terms right, so I have a business central implementation. From within business central I can install the paste, paste. I sign up for the paystand service. There's a, an extension or something that I install within paystand, so I don't need to set up anything outside of paystand. Right? Or another product or anything? Uh, is a requirement or is everything within business central? Is there any?
Speaker 4:we have an extension that gets downloaded and set up by our implementation team. Um, there's GL mapping that has to happen. There's customization of templates, which are the email templates that go out to the customer, while the email, you know, to get the PayNow link. And then we do have an API to our dashboard and our dashboard is what manages a lot of the stuff. So we are as much as we are extension-based.
Speaker 4:You initiate a posted invoice but as soon as that posted invoice happens in Business Central, you can either post and send you know using traditional workflows out of Business Central. You can also use like where I will pitch. You know we're strategic partners with Ben Cole at ERP Connect Consulting, so his invoice and statement delivery solution is really the only payment solution that works with his. So you know you don't have to rely on that. But once your posted invoice is created, it syncs to my dashboard and then we also have our own workflows there.
Speaker 4:So we have collection plans that start the collection process and collection doesn't also mean like late, like collection could be, just get the fees collected. So you could be maybe, brad, you're an on-time payer, so we're going to set you up on a standard collection plan. You're going to get your invoice sent out to you and then, five days before it's due, an email is going to go out and that's going to say, hey, your bill is due, remind. And then, maybe 10 days after it's due, we're going to send you a reminder. But Chris, on the other hand, is a late payer. We're going to remind him 10 days before, five days before, three days after, five days after, six days after, 10 days after, until he is paid. So all of that's managed in our side.
Speaker 4:The other thing is the pci compliance piece. All the um tokens, the stored payment methods, are actually in our pci compliance dot to compliant um secure servers. You know our side. So that takes that out of the, the merchant's responsibility. They, they don't have to worry about PCI compliance filing. We do all that, we take that all on, and so if someone needs to like call in a payment, they would go into our dashboard and pull out the store token and apply the payment there. So there is kind of a dual scenario. But honestly, if you have, you could never go in our dashboard ever. If you just create an invoice, post and send and it sets it, it does. You know, there's default settings and things like that. So it's pretty easy. But there is a. It is a two-part solution.
Speaker 2:So you hit on one of the key points that I wanted to get to as we go through the process. So, from the customer point of view customer of PayStand if they're using PayStand for collections or payment processing of their customers, they don't have to worry about credit cards, bank accounts or anything because that's all handled on your system, so they don't have to worry about again.
Speaker 2:I use this loosely they don't have to worry about the security of the sensitive, the information and you had also mentioned. So I create an invoice in Business Central. That invoice gets sent out through PayStand, right, it comes from Business Central automatically to PayStandstand. Then the customer receives the invoice. We'll have a payment link which they can click. Uh, you had mentioned that they could call too. So if they call, do they call? They call the the.
Speaker 4:I mean if they okay, yeah, they don't even know they're using paystand, when it's a fully branded payment experience.
Speaker 2:You know um and you had mentioned subscription billing, and I'm asking this because I was. Somebody asked me about this the other day, to be honest with you. Um, again now the subscription billing we won't go down. The whole thing was what is something that was also added, but I've also worked with others that you have recurring billing where it's uh, it's a service. You have a monthly fee. Sostand, can you set up that monthly fee to automatically send the information out, or would you have to set that up in Business Central?
Speaker 4:You still have to set up the invoice in Business Central. But what's nice is if you enroll the customer, they opt into an auto pay and they store, they select, they deliver their stored, their preferred payment method Again, this could be ACH credit card or the PayStand Bank Network and that gets saved and stored and then on the due date, we just post that payment, we look at due date and that will send out a reminder. Hey, you've got this stored method on file. You will be charged in one day, two days, three days, whatever the merchant says will send out a reminder. Hey, you've got this stored method on file. You will be charged in one day, two days, three days, whatever the merchant says, if they need a reminder. If they don't, then it just pays and they get the receipt.
Speaker 2:And that is how you can speed up payment collection or AR collection, because you will have someone to have auto pay.
Speaker 4:Yeah, and if they use the bank network um as their payment source, they get paid. Then the, the merchant, gets the funds the next business day, whereas an ach could take three to five days. You know, sometimes, depending on the cash flow, that's where we really start. You know, what can a company do with that cash?
Speaker 2:Oh, you can do a lot with the cash. It's in your bank.
Speaker 2:We asked that question and also so when the payment comes in, what is required from the customer? And I use the paystand customer, I'll call it the merchant, I'll use the same terminology. So I am a customer of yours, you know, and I pay well and I submit my payment. What happens then? Does the merchant have to do anything in business central or does it automatically get applied to the invoice, which then I'll ask questions about? What about split invoices, multiple invoices? Because if I receive 15 invoices, I may only pay 14. I may pay 13. I may pay $500 and just say apply it.
Speaker 1:Or half pay on the invoice Partial.
Speaker 4:You want to take that, danny? I mean the comment is. I mean the merchant can control what's allowed by the payer. So the merchant can say you can short pay or you don't, you know, so they could prevent that. We also have open invoice presentment, so that's another way that instead of sending a single invoice out, you send a link that clicks on and literally it's a dynamic link, so they can go to that email any day of the week. They can bookmark that URL and refresh it on a daily basis, and any invoices that are being created under that customer number, that customer ID, show up there and they can choose which ones they want to pay and which ones they want to not pay, which is a really cool experience, because we do know that some people like to manage their own cash on the payer side and decide which ones they want to.
Speaker 2:That's where I'm going with some of this because then also my next question with that is oh, but to finish up, so if they select the payment of an invoice through the dynamic link that you have, so they can do online payment and, as you mentioned, they can do ACH, they can do wire I thought I heard you say wire right as well no ACH credit card and the bank network okay, so ACH, credit card bank network, uh, as their form of payment in that automatically, once they have the payment you said, the cash or the ACH goes in next day.
Speaker 4:Credit cards when the credit card processing network is next day ACH and credit cards day credit cards when the credit card processing Bank network is next day. Ach and credit cards could be anywhere from three to five days, depending on their banking relationships and other things.
Speaker 1:And posting.
Speaker 2:So then the invoice will get or the payment will get posted once it clears Correct, and that happens automatically. So the invoice just gets miraculously posted. So you have a reduction of time. I guess you could say um for staff. Now I like to control my payments and I I do pay. Well, I schedule my payments because if you give me an invoice for 10 days, I don't want to pay today, but I don't want to pay today, but I don't want to forget about it. In 10 days I want to say pay this on the due date. Is that available in this solution or no?
Speaker 3:I mean you could be set up on an auto pay sort of schedule, right, and so that would be about the same.
Speaker 4:It would be based on the invoice due date.
Speaker 2:Yeah, that's what I was referencing.
Speaker 4:So if I receive an invoice now, I, the payer, doesn't get to say pay this on Thursday, the 7th. That is something that the roadmap's looking at. That's been like I want to go in and choose what day I want to pay, but you have two options. You could be on auto pay, which looks at at the due date, or you could just go pay the bill so it's a pay now, and then we'll have the new brad feature of schedule it for next tuesday that'll be, something that's being looked at for roadmap we'll add your comments to our product.
Speaker 2:Yes, yes, just say, call it the brad pay just.
Speaker 1:Just refer him to this episode.
Speaker 3:Yeah.
Speaker 1:Listen to all the ideas, yeah.
Speaker 3:I like that.
Speaker 2:No, this is. I see this Say I'm glad we're having this conversation.
Speaker 4:Chris, I'm learning more and more every time I talk with everybody, because so our challenge is okay, if you asked us, you know you asked us, you know how asked us, you know what is the ideal customer. How do we? What do you think you know? I'd love to hear your opinions of you, know your professional worlds, like, how do we get you guys or partners or team out there to think about AR? Because you know my opinion, you opinion, I was selling 10 years of ERP and we talked about AP all the time. You talk about warehouse, you talk about all this other stuff, but you kind of forget about people getting paid. It seems to be not part of the discoveries, it seems to not be priorities, which is really ironic, because the quicker the merchant gets paid, they can actually make more money.
Speaker 2:The challenges that you have presented that you're solving I've been talking about even way back in the division days, right, because you had credit card processors that allowed for the credit card payments and the taking of payments, and I even remember early on doing customizations and using external products to allow for those links. I don't understand as well, as part of the discovery, why the collections process isn't so focused on, and I really do go back to I think there's still a stigma in the US and I think it's slowly changing because of I think, honestly, it's. Maybe you know the way the workforce is now is a lot of people are still hung up on checks, because I worked with somebody and the only way I could pay them was by check and I was floored because I can tell you I probably wrote. I can count on my hand how many checks I've written in the past four years and when someone asked me to write a check.
Speaker 4:I literally had to go to the bank to get a check because I don't even know where my checks are. So I wonder if we're solving for that a little bit, go ahead.
Speaker 1:Chris, yeah, that is interesting because I've done a lot of AR payment implementations and I think a lot of that in my experience is there's two parts. One is that during a discovery, typically it's like they already have a system in place. You know, they either have a terminal through their merchant then they just manually reconcile and get through their day. And also during the implementation, sometimes they may not have the time to test that because their focus is, you know, selling and purchasing and shipping, but payment doesn't necessarily happen way after shipping is done, so they may be focusing that. And then AR payment is after go live, more like a phase two, and then they're like, oh, we should be more efficient in this. That's from my experience. And there's many occasions where like, oh, we should be more efficient in this, that's from my experience. And there's many occasions where like, hey, we should maybe implement this now and then make it part of your implementation and go live, but that's what I get. A lot is that, hey, I'm just trying to ship my product.
Speaker 4:I like that feedback. Here's the thing that I think we need to. You know, if anyone's listening to this and can take, nobody listens, it's just us. When people are listening to this, you know, I think the nugget is like our solution again, not only are we allowing our customers to drive their profitability of their company our solution of their company fire solution what that does is it creates a huge ROI which then frees up cash which then can help pay for that business. Central implementation and that's the key is like if you do business central plus paystand year one, and I'm going to tell you, you're going to save $40,000 by using paystand, and that's a realistic number. It could be hundreds of thousands of dollars, but basic $30,000 ROI first year is very easy if you just turn on our system.
Speaker 2:I like that.
Speaker 4:Then the bar can take that $30,000 and put it towards the implementation and kind of close that deal better. And that's where we struggle in working with bars and working with the channels, getting that message. That's why the earlier the deal is, we could go post-live, you go live and we'll implement the next month, like, but just think of us in that package. You know, it's kind of how I think it's important.
Speaker 2:You know, hearing you say that and hearing what chris has to say, I understand it's the focus of the importance. But even if you don't want to do it until afterwards, having the plan up front could be important, because you do need to receive cash and it's it's. I talk with many on going through the implementations and a lot of times they want to bring the same processes forwards but then you don't get the efficiency of it. So if you're going through an upgrade or an implementation of business centrally, you get the efficiency of your cash management. That's a. That is a savings, because then you can also cut out checks getting lost. You can get out miss application and also now, if it's free, all right. Is the whole app? I don't need to talk numbers. Is the whole application free or is it just that the bank network's free, or is there?
Speaker 4:We are a for-profit company, you know so. You know we do have to, you know so. We're a SaaS company. We're selling the software. So we look at the revenue that's coming through our organization and we put you in a monthly tier. It's a fixed price, though, so it's a tier. It's like your Apple storage. You know, if you are within a tier you're between $5 and $10 million you pay a certain monthly price and what's great is, you know, with most companies having 5, 10, 15% annual growth, like at the end of the day, if you're in that $5 to $10 million tier and you're a $6 million company, you got a lot of space to grow without your price changing. You know, whereas, every million dollars you collect revenue that's 30, and it's being paid by a credit card, that's $30,000 of hard cost that someone has to pay either the customer or the merchant but someone has to pay that to collect that million dollars. They're paying $30,000 a year because the average credit card's about 3%.
Speaker 2:And then if you're having a person receive the cash, they have to apply the cash they have to apply the cash they have to deposit the cash, give you thirty thousand dollars of roi very easily because you just move them.
Speaker 4:because what we find is, as soon as you offer someone a free alternative payment other than you sharing that burden or that cost, they choose the free option, and it's typically 40 to 60% immediately.
Speaker 2:I would choose the free option to pay, but I would choose the free option to pay as the last day possible. I mean, that's how I roll, because that way it goes both ways. Because now the merchant which we talked about that's what we'll say gets the cash sooner, even if it's a due date, because you're going to forecast receivables anyway, and then now, as a payer, I can pay it, keep my cash as much as possible, so I don't have to outlay the cash for a check.
Speaker 4:You can extend your full terms, accept your terms, go on auto pay and on that due date, whatever it's net 15, net 30, net 45, net 60, whatever. On that due date, whatever it's net 15, net 30, net 45, net 60, whatever on that due date, it's going to pay it.
Speaker 4:Yeah, I like that and you've got plenty of time to review it, negotiate if there's a problem, but just get them on auto pay. That's our most successful. The fee's not going to. You know checks. You mentioned a lot of issues, but you forgot about insufficient funds. Achs are insufficient. I could send you, brad, $100,000 ACH today with only $1,000 in my bank account.
Speaker 1:Really yeah, can we test that? Can we test that. Can you send it to me?
Speaker 4:Well, here's what I mean. Let me reverse it. Let me reverse it. I could send you a $100,000 ACH if I have $100,000 in my bank today, but by the time it reaches you, I might not have $100,000 in my bank anymore.
Speaker 2:But I still get the $100,000.
Speaker 4:No, you don't.
Speaker 1:It doesn't make it right, Because you have to wait until it clears.
Speaker 4:You have to wait until it clears, whereas in our solution, because of our blockchain technology, when someone goes in and verifies their bank account.
Speaker 1:That you have funds.
Speaker 4:There's funds.
Speaker 1:And if there's no funds, they can't.
Speaker 3:Yeah, go ahead it shows which bank account has sufficient funds and so the one that does not have. If there's an account that doesn't have sufficient funds, it's grayed out and non-selectable. So they're only able to select the account that has those sufficient funds. So it really mitigates that risk factor. With ACH not having enough money in that account to complete that payment, business waits for the payment. It doesn't happen, then maybe they cut you a check like a week later. So the time to cash is just really long. So that's one way we're able to kind of eliminate that process with that instant fund verification that David was saying.
Speaker 1:Yeah, I think you made a great point earlier, david. Why don't you want to get paid immediately for customers or clients of yours that wants to pay now and not wait for two weeks until his due date, because sometimes client wants to pay now? These are the questions. If you don't have that option, it's hard.
Speaker 2:No, these are the questions. I'm getting quiet because I'm actually visualizing this now because it's how often do you have insufficient funds? You know we have what we call bounce checks, I guess back in the day you know, and then also with the late payments.
Speaker 2:You know these are the selling points. To get this up front because, even right there, because with insufficient funds there's a cost to that as well, not only to the payer but to the merchant for receiving and trying to cash an insufficient funds. Check ACH is another story that you talked about. But I'm still waiting for my $100,000. I'll give you my bank account after if you want.
Speaker 1:But that is a risk, right? Because you can have an invoice where you have due date coming up and then you receive that check and then you enter it, you post it, but the check may not clear for a couple more days and you realize there is no funds and it bounds. And then now you're going to go back and you know, adjust that invoice, reverse it.
Speaker 4:I've seen that and by default, that net 30, that you know the, the customer, the payer sends the check in, you know, day day 25, through the US Postal Service. Well, you know, we know Canada is having a postal strike right now. So I mean, who wants to trust on the USPS right now to get a check across? So let's say they do get it by the due date, okay, then they post it, and then again funds are two, three, four days later. I mean, you're now not, you have late payers.
Speaker 1:Yeah, and then you send a statement. They're like I already sent my check Exactly, it hasn't cleared yet. Yeah, yeah.
Speaker 3:That requires that merchant to you know, give them a call and have that awkward conversation over the phone. It's not fun.
Speaker 1:Yeah, time taken from you know an employee to have the call and have that awkward conversation over the phone. It's not fun. Yeah, time taken from you know an employee to have the call and make that collection. It just it adds up, you know, within that 30 days.
Speaker 3:It's really common to you have, like, sales teams making these calls for collections at some merchant companies. It's it's pretty wild, so eliminating a lot of that.
Speaker 4:Yeah, and then it's pretty wild, so eliminating a lot of that, yeah, and then they're not selling, they're collected on sale, Like you know where's the deposit? Yeah, I mean.
Speaker 3:Well, part of it is with automation. At least it's giving that team that you know accounts receivable or accounting team time back to actually do more value-added work rather than like manual data entry and all that repetitive stuff. That's just, it's not super valuable to scaling the business, so it really helps.
Speaker 4:I do want to build because we do know behavior. And, brad, you mentioned, we're all shocked. Everyone on this call is shocked how many people still write checks. Okay. So we're solving for that. You know some exciting stuff coming this year, hopefully in the first half, closer to when this airs.
Speaker 4:But you know people have lockboxes, you know they operate on lockboxes, they exist, we have lockboxes in our other ecosystems. We will have something to talk about in the business central space, but again it kind of defeats our purpose of our core mission. So it is a late addition. It's kind of like there, because we have it with our other ecosystems and some customers want it. But again, that captures additional revenue that some companies will just always have payers a portion of their payers, you know, using a lockbox, so you know. And then there's a smart scan, which is really cool, smart check scan. So there are payers that actually will always want to burn a check. But now in our payment experience we're going to give them a QR code where they can take a picture of the check and just use that check and it comes in as an ACH reality because that's all a check is.
Speaker 4:A check is a paper form of an ACH. It has a routing number, it has an account number and it has a check number. That's the only difference. So it burns that check for the payer. So it satisfies that. The flip side is it is traditional ACH, so there's a little bit of cost there. But the merchant can offset that with a convenience fee if, hey, you don't want to send a check. But the other side is it mitigates some of the insufficient funds. The person doesn't have to lick an envelope and put a stamp on it and risk the mess. Gotta lick an envelope.
Speaker 2:People used to get sick from licking and stamp. Yep, you used to get sick from licking those. Remember the sponge.
Speaker 4:Forever stamps. Right, I still have forever stamps, but I think I bought 48 cents at Costco and now it's like 80 cents.
Speaker 2:I don't even know what a stamp is today. Thankfully, I don't have to send too much to the mail. So I do have another question for you. But you mentioned the scanning of a check. Do you know scanning of the checks? It's called Check 21. Did you know why that started?
Speaker 4:Yeah, I know exactly why that was established because of 9-11. Exactly.
Speaker 2:And ready my brief hiatus from ERP and Business Central and Division, I went to work for a software company and managed the development of the check 21 processing.
Speaker 4:Awesome. So we, I think check 21 is brilliant. I mean it. I mean our financial systems stopped because of 9-11.
Speaker 2:That's exactly where it came from, so that you're able to scan your check. So we used to work with that whole thing with interfacing. Danny has no idea what we're talking about. You know you used to go into the store and buy your tires, and you'd have to write a check because credit cards weren't as popular back then. This is 2003?.
Speaker 4:There were 28% credit cards.
Speaker 2:Yes, exactly, that's why they weren't as popular, but we also did the Check 21 processing and the credit card and the merchant processing, and then we would also bundle those checks and route them to the appropriate bank to clear and give it to the merchant so they get their funds back.
Speaker 4:a little tidbit for you so check 21 did danny was basically image the check to accelerate the processing, kind of said oh well, you have an image, let's scan it so we could start the moving of money faster rather than waiting for that to actually go and clear at the clearinghouse, because 9-11 shut down airplanes and checks could no longer go through. We couldn't move mail Like we couldn't, you know, and so they said that's why you needed the B2B network.
Speaker 3:Yeah, so you ignored all that and just use.
Speaker 4:I mean, that's our story. I mean, if you think about why Jeremy started this company, he was so upset with like paying, you know, like to access your own money, if you think about that, you know. So you have all these limitations, the credit cartel, you know, he calls it the banks system that they make money on. As companies' revenue grow, as you, as the merchant grows, then your cost to collect revenue increases Again, every million dollars is $30,000 plus soft expenses. So let's get rid of that, $30,000 plus soft expenses. So like, let's get rid of that. And then what happens is, with our model, as your revenue grows, your cost, your percentage to collect revenue, your cost percentage costs to collect revenue, decreases. I mean, we've literally lowered, like the dips of someone's collections from like you know, paying 3%, three and a half percent down to like below 1%, like 1.1., like as an average collection cost over time because of how we've been able to control with those levers, how the merchant can use those levers to change how payers behave.
Speaker 2:I understand how this all works and I think it's a great service and I'm with you. Maybe I have a question of why not so many are using a service such as this within their implementation. We talked about the features and functionality of it. We talked about, maybe, the timing of the implementation, but somebody who's going to use this service, what should they expect for an implementation? How long does it take? What are the requirements they need to have this set up? You know what's involved. So if I am a merchant and I want to start using the paystand service with my business central implementation, or even in the sense of there's a partner that wants to start implementing this with their customers because their customers, in the same case, they are merchants and they're selling and receiving cash what would they expect for an implementation? What does an implementation look like as far as timing and how long and timing as far as what's involved? How much time should someone expect to spend on it? What type of requirements that they have to get started with it?
Speaker 4:Annie go ahead.
Speaker 3:It's about a five to six week implementation process. We do all the heavy lifting on our side. We only really require about five to six hours of the merchant's time for implementation. That's typically going through testing, branding, getting your marketing materials all set up. So, yeah, it's very minimal lifting for the merchant. It's a relatively fast implementation.
Speaker 2:So the time required for a merchant is five to six hours, but the duration for financial setup is five to six weeks. So I understand that part is sometimes it requires the banks and I've worked with banks before and they're slow, so the setup of the financial transaction is to make it take some time. If working with a partner to implement this for a one of their customers, is this something that the partners would implement, or is this something that you would implement? Or is there some sort of relationship where they can implement it and you assist, or what does that look like?
Speaker 3:Yeah, I'd say we take on the brunt of that responsibility, but we involve the partner as much as they want to be involved. So really it's just depending on how involved they want to be.
Speaker 4:I think our version 2.0 eventually would be. You know who are the partners that want to do it, but you know I was a partner. You guys are partners, like. At the end of the day, you typically don't want to deal with that. It's hard enough to stay current on Business Central, so like, let us do it, type of thing. But I will tell you that sometimes it's the Azure permission access, like to get the cloud services or whatever like to be able to get us to be able to administratively install our extension and some user rights stuff that typically most business central users have no idea what they're doing. You know they have to lean into their partner for an hour, you know, to kind of get that done, but some admins in Business Central absolutely know how to do it. You know we don't consume a license. It's not like someone has to go buy an extra Business Central license but we do need to get access, the right access to Business Central to do what we need to do.
Speaker 1:How about.
Speaker 4:It's easy. It's like $3,000 to $6,000, depending on number of companies, number. You know to do it, so it's a real easy lift.
Speaker 2:It's easy for the benefits you can get. So we talked about the timeframe, we talked about what the expectation is for the implementation. What are the prerequisites for implementing this? Now, what I mean by prerequisites is what does the customer need to have set up? Maybe financially the merchant See I'm going all over the place what would the merchant need to have set up if there's any prerequisites financially, but also within Business Central? So if they're going through the Business Central implementation, when would be a good time to start this process through their implementation? They need a GL.
Speaker 4:They need a GL because we have to do mapping. They need to have an item so they can create an invoice and a customer.
Speaker 1:A standard.
Speaker 4:Yeah, a sandbox implementation would be. You know we run a couple $1, $2 fake. You know transactions. You can send those to me. You know kind of you know, so you know, and then we either void those out or whatever. But you know a signed contract customers do go under underwriting. Typically it's they need a website. So startup companies that don't have a lot of history may be an issue that's a typical underwriting thing but they have to have a lot of history may be an issue that's a typical underwriting thing but they have to have a website at a minimum.
Speaker 3:Like six months, six months of statements, Six months three to six months of statements yeah, bank statements, credit card statements, just proof of revenue, type of thing.
Speaker 4:Our underwriting process is one to two days, whereas I do know, other places could be weeks and lots and lots of back and forth and stuff. But it's, you know, because again our goal is we're really underwriting the credit risk of the bank-to-bank network at the end of the day, like you know, because we're taking on that risk of you know, know your customer average deal size, things like that. So we get all that information post-signature, we can do it before signature. But our sales reps typically know what type of customers they're working with and set some expectations Industry. Obviously we eliminate pretty quickly um, um, it's real easy. So literally you could be live in five weeks, six weeks from signature, if you you know, if you need it to, I've done it in two weeks.
Speaker 1:Also, if you know we're late to the bus, um, but uh, if you're doing testing for this dollar, ach, you can send it over to you. You don't have to void it, it's just a dollar.
Speaker 4:Exactly. Why don't you just? Send it to your bank.
Speaker 2:Does anyone do micro deposits before? I remember way back in the day when I was setting yeah, it used to be like if I would set up something for a bank transaction like oh, you'd see a small transaction, yeah, two, three cents.
Speaker 4:It's like a penny. I've seen that on a couple subscriptions.
Speaker 2:I haven't seen that I haven't seen one of them. I haven't done anything in a while. I don't do anything.
Speaker 4:I live a boring life but yeah, and then you, just, you know, we, we invoice either, you know, depending on the deal, it's either a 12 month, you know, an annual or a monthly subscription. Um, it's an annual contract with either an annual or a monthly subscription. It's an annual contract with either an annual payment or a monthly subscription, depending on the negotiations. We have a great referral program for our partners. They get paid on the subscription to do nothing, to just give us the leave.
Speaker 2:That's what Chris likes the best to get paid to do nothing he knew exactly when you hear him, he started laughing because he knew exactly where I was going with that. Chris wants to get paid to do nothing. Yeah, I think everybody does, but I tease him, it is.
Speaker 1:It's the mailbox money right. Mailbox money, that's what I call it Mailbox money.
Speaker 2:Mailbox money.
Speaker 1:So, support-wise David, when you're implementing, who manages the support? Is it something a VAR would have to deal with, or is it directly with Paystand?
Speaker 4:We put an implementation manager on the project from day one. But what's really cool is we also assign a customer success manager to that merchant and we do that at day one. That customer success manager is who's going to manage that customer post-implementation. But they're there during implementation so they're aware, they're watching the notes, they're looking at the project boards, they're aware of anything that comes up. And then their goal is to set moments of reality checks. Are we getting the adoption reality checks? Are we getting the adoption? Have we written the right emails to get your customers to understand what auto pay is, to enroll them into auto pay? Maybe they're switching from one payment method to another? How do we warn them?
Speaker 4:You know, 30 days before, hey, on May 1st you'll be seeing something different. This is what you're going to be seeing setting up those communications, working with the customer success, because adoption is critical. You know that is the most measurement of success, to the point where, at day 100 after go live, we have another meeting and we make sure your adoption is right and we don't wait until then. But it is part of the process and we readjust. Hey, maybe you do need to put you know.
Speaker 4:You're still getting a lot of checks. Maybe what you need to do with your check customers is set them up on an incentive that says you're going to give them a 1% discount to use the bank network, but we're not accepting checks anymore, sorry, and you do that for 90 days and then you turn off that 1% once they've adopted and you have them on auto pay and they're done. But give them some sort of incentive. And again, that 1% incentive is significantly less, could be significantly less than any one bounce check or any one manual process of putting those checks in there or whatever all of that stuff is. So not only do we have the carrot and the stick methodology, and when you apply both of those levers, that adoption instead of 40% to 60% now becomes 70% to 90%.
Speaker 1:Incentivize.
Speaker 4:Yeah, say I'm not accepting checks anymore. Customers, I'm going to incentivize you a half a percent or a percent for, you know, using the bank network, I'm going to charge you a 4% to use the credit card, which is actually a revenue stream, if you think about that, for the merchant, because they're only paying. You know, 2.9, 3% depends on the card type of thing. 2.9, 3% depends on the card type of thing. But now they're actually creating revenue for the customers that do choose to do that, and I'm not going to accept ACH and all of that's customizable by the customer. So the merchant can choose any of their customers to have any experience they want. At a minimum they have to offer the bank to bank network. That's all we ask, and we have customers that literally that's all they offer. You want to pay me, use bank to bank network, or you want to use credit card? It's 5%, it's 8%, like it doesn't matter, you can gouge. I mean, because people are going to use the bank network, I don't accept checks.
Speaker 2:I don't like checks.
Speaker 4:My mom sends checks for birthdays. I'm like, can you just Venmo me?
Speaker 2:I don't have Venmo either. Really, I use Zelle.
Speaker 1:I don't use Venmo I don't use PayPal.
Speaker 2:PayPal sucks.
Speaker 3:PayPal is bad.
Speaker 2:PayPal is horrible.
Speaker 4:Zelle is nice, I love Zelle.
Speaker 2:Don't tell me Zelle is Venmo or PayPal no.
Speaker 4:Zelle is Zelle. I don't know who the thing is, but PayPal is Venmo is PayPal.
Speaker 2:Well, I had a problem with PayPal because I used PayPal to purchase something and it turned out to be fake.
Speaker 2:The one time in my life. See, now we're going to go with the woes of Brad. One time in my life I purchased something and I never got it. And I contested it and the merchant sent. I ordered a shirt and a paired it, and the merchant sent. I ordered a shirt and a pair of pants. And then the merchant and the PayPal then did the investigation reached out to the merchant. The merchant provided them a tracking number. Okay, I looked up the tracking number. It said three boxes, 150 pounds. And I said the invoice is for a pair of pants and a shirt. Okay, and I lived in.
Speaker 2:Can I tell people where I lived? Or is that not safe? Just a state? I lived in a state in the United States. The place in the United States where that package was delivered was not my state, all right. So they provided a tracking number, right, oh, excuse me, no, it had the same zip code. So they must've found a package tracking number with the same zip code, right? And it went from like one place to another. It was obviously not what I had ordered, because it was three boxes, 150 pounds.
Speaker 1:PayPal said what kind of pants and shirt did you order?
Speaker 2:I'm a big guy now. Chris, you haven't seen me in a little bit. I ate a bit over the holidays. No, this was a couple years ago and paypal said no, they provided the tracking number I did I wrote back to them and I said did you look at the tracking?
Speaker 2:it's not even me, it's obvious. Thankfully, thankfully, I've reached out to the bank and the bank said see you, bye, paypal, you ain't getting the money. Yeah, thankfully so. The ever since then, I've never used paypal, and paypal sucks, and I'll say that over and over and over again paypal sucks and and remember, that's like one of your default collection methods in business central, so you could avoid it.
Speaker 4:Oh, paypal sucks.
Speaker 1:There is PayPal.
Speaker 2:I've had someone say oh, can I pay? No, I won't even I deleted my account. After that I did everything. I will never use PayPal again. Because they went through and I exchanged with this person. I showed them the invoice, I showed them everything, I had everything, and they said no, they gave you the tracking and, like I could have picked the tracking number out of the, you know it's not difficult to find a ups tracking number online.
Speaker 4:By the way, I mean it's, everybody knows the format of the numbers. We're dealing with that all the time with my kids now. I mean because not just the business they started, but they, they love buying like these random clothing. And like they're like oh, can you give us your credit card? You know we're going to process. We're like have you looked at the website? Like, is it a valid site? Is it like are you really going to get this? And like we're still waiting for some sweatshirts, probably from China somewhere, like you know from Christmas time that who knows if we're ever going to get them. But you know you go out on Reddit, you kind of validate the vendor. Are they real, you know?
Speaker 2:but you know that's that's why we have to deal with underwriting, because some merchants I didn't want to take us on a little bit of a tangent there, but uh, Danny and David, thank you for taking the time to speak with us this afternoon and also for joining us for the first recording of 2025. We've been at this for several years now, so, um, we're thankful. Year for episode 401. No, we're not changing the numbers. I want the numbers to be consecutive.
Speaker 2:We can't do the 401 just pick up the last one, because now it looks like we have 400 episodes and I don't. What are we going to get when we get to 10 years? 10,000 or 1,000, whatever it is?
Speaker 4:it's kind of like planning for your. I remember the GP days if you didn't plan your invoicing.
Speaker 1:Number, series Number series correct.
Speaker 4:You'd run out of space eventually and you'd have to. You know like you got to plan your episodes.
Speaker 2:Chris, we can do season four episode whatever the last number was. Let's just do that, or can we just start over?
Speaker 1:at one. Just do one, because it gives you an option for season four and then episode 001. In case we do 100, right, we may do 100 this year.
Speaker 4:We should try. You could do 1,000, though, if you set it up that way.
Speaker 2:We could try to get to a weekend, no, but thank you for taking the time to speak with us this afternoon and telling us a lot more when are we going to see you guys like in, like the flesh next, uh where are you going to be? Are you going to be any? This is what I was going to say, but thank you again. Uh, where will you be soon?
Speaker 4:we'll be at directions absolutely I'll see you there.
Speaker 2:Um you're going.
Speaker 4:Brad's the one of directions, because you don't, I always go to directions. Then you said going brad's the one of directions, because you don't, I always go to directions. Then you said you've never been in california. You lied to us he's san diego.
Speaker 2:I went, oh, I did lie yeah whoa because you were yeah, yeah, san diego, I take that back.
Speaker 1:We go to directions all the time I take that back.
Speaker 2:that was the first time I went to California See San Diego. I totally forgot about it.
Speaker 4:I was thrown off by that, so we'll be in directions. In Las Vegas we're planning a really cool ISV party with a bunch of really cool strategic guys.
Speaker 2:Can you put me on that damn list now?
Speaker 1:Yes.
Speaker 2:You are on the list.
Speaker 1:We'll be your media. Yeah, look at me, that'll be your media.
Speaker 4:Yeah, look at me, that'll be exciting. Love that, so that can be a good occasion Because we're finding like ISVs.
Speaker 2:Danny, get me on that list now. You know he'll forget.
Speaker 4:Yeah, ISVs work together really well and we like to kind of be together. So I think it helps VARs choose their ISVs when they're all working together. So we're going to do that.
Speaker 3:Danny is doing a lot of road shows.
Speaker 4:She's doing some road shows.
Speaker 2:Which ones. I'm doing some road shows, so you may see me, me too.
Speaker 4:Denver, chicago.
Speaker 3:Tennessee.
Speaker 2:You going to Tampa? No, why?
Speaker 4:Vancouver. She's going to go to LA next week, but we have our sales kickoff, so she's not going to make that one. We're going to do so before, but those are all. We'll see you at Directions before those, but we're doing Chicago.
Speaker 2:Doing DynamicsCon in Chicago.
Speaker 4:I know we're attending. We're both registered to attend. We haven't picked up the sponsorship there, but we'll definitely be there.
Speaker 2:I see you at Directions Roadshow.
Speaker 1:No, vancouver Roadshow.
Speaker 3:I think we're thinking about it right, David, we're thinking Toronto.
Speaker 1:Toronto Trading in Toronto.
Speaker 4:Yeah, and then we are looking at the meetups as well and we're kind of seeing with the know, with the Doug meetups.
Speaker 2:Go to Tampa.
Speaker 4:The regional ones More of the regional ones. You know those are a bigger bang for the buck, but we're excited. That's a new strategy this year. Put some miles on Danny's tennis shoes and getting her out there and giving her something.
Speaker 2:Someone will have to ride the horse while you're away, though.
Speaker 3:Someone yeah, Someone does care for him. I have all that lined up whenever I leave, but I am so sad to leave.
Speaker 2:No, no, I can imagine. See, the first thing I thought of with you leaving was the horse.
Speaker 3:David's very receptive though of me, you know, not running me too hard on traveling. So well, maybe you can bring the horse, so your paystand will get so big that you can bring the horse with you if he could just be our mascot, I know we'd be you could show up to a road show on a horse how many would that be?
Speaker 4:well, we are having our sales kickoff next week in santa cruz. Maybe she could just ride downtown on the horse and park it up. It's gone down. What a way to get business.
Speaker 1:Name your next horse, Paystand.
Speaker 2:They will remember you A lot of it's all about being remembered. So if you show up with a horse, people remember you. And David, your point of ISVs work well together. I agree with that, just like I'm on the kick of collaboration on presentations. If you have a gathering with multiple ISVs, it's a great draw because individuals can talk with many ISVs in one spot and they don't have to run from engagement into engagement or event to event. So I'm a fan of the multi-ISV receptions I'll call them where you can have the opportunity to talk with each other and then also get verification that some of these ISVs work together as well, which is extremely important because there's a lot of options outside of payment processing with PayStand, but there's other ISV solutions that individuals use that you want to make sure work together and you can see that that relationship is very good.
Speaker 2:But, thank you again for taking the time to speak with us this afternoon, this morning, this evening, whatever time it may be, wherever anybody is, this morning, this evening, whatever time it may be, wherever anybody is. And if someone would like more information on paystand and how to implement it, or to have it implemented, or to even see a demonstration of how it works and a more in-depth look at the features, what's the best way for them to get in contact with you?
Speaker 3:Reach out to me.
Speaker 4:Reach out to our company.
Speaker 3:LinkedIn email phone number. I mean I can, I can name them all here.
Speaker 2:Give us your LinkedIn and the website and if you would like to share the email, you could do that. We will put the information in the show notes as well, but anyone that's listening, if they wanted to, what's the best way to find you on LinkedIn and the website?
Speaker 3:Sounds good. All right website. Yep Sounds good.
Speaker 2:All right, great. Thank you very much. Have a good afternoon. I'll speak with you both soon, I'm looking forward to seeing you in April in Vegas, so be ready.
Speaker 1:Dangerous. Yes, it is All right, Ciao ciao Bye.
Speaker 2:Thank you, chris, for your time for another episode of In the Dynamics Corner Chair, and thank you to our guests for participating.
Speaker 1:Thank you, brad, for your time. It is a wonderful episode of Dynamics Corner Chair. I would also like to thank our guests for joining us. Thank you for all of our listeners tuning in as well. You can find Brad at developerlifecom, that is D-V-L-P-R-L-I-F-Ecom, and you can interact with them via Twitter D-V-L-P-R-L-I-F-E. You can also find me at matalinoio, m-a-t-a-l-i-n-oi-o, and my Twitter handle is Mattelino16. And you can see those links down below in the show notes. Again, thank you everyone. No-transcript.
