QuickPay is a valuable tool for freight brokers, offering carriers the benefit of faster payments, typically within 24-48 hours instead of the usual 21-30 business days. Beyond improving cash flow for carriers, QuickPay can serve as a strategic advantage for brokers. Carrier QuickPay can help brokers attract top-tier carriers, improve retention, and even add a new revenue stream.
However, implementing QuickPay requires careful planning and communication to maximize its benefits and minimize risks.
In this blog, we will cover best practices for managing a QuickPay program, including how to navigate fraud and leverage the right tools to make your program a success (and profitable).
1. Vet Your Carriers: Avoiding QuickPay Fraud
One of the key challenges brokers face is distinguishing between legitimate QuickPay requests from trusted carriers and those from fraudsters or double brokers attempting to get paid before being caught. QuickPay fraud can pose significant risks, including financial losses and damage to your reputation.
Best Practices for Vetting Carriers:
- Onboard Through Trusted Programs: Use established carrier onboarding and vetting systems like MyCarrierPortal (MCP) or Highway to ensure you are working with verified and reliable carriers.
- Limit QuickPay to Trusted Carriers: Consider offering QuickPay only to carriers with a proven track record, reducing the risk of extending this service to potentially fraudulent operators.
- Regularly Monitor Performance: Keep an eye on carrier performance and payment history to identify any unusual patterns that may indicate potential fraud. For example, if the name on the invoice is not the same as the bill of lading.
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Double brokering scams have cost the industry over $700 million—don’t let your brokerage be next. Stay alert to spot red flags before QuickPaying a fraudster. Read our "Unmasking Double Brokers" for essential tips to protect your business and keep your payments secure.
2. Monetize QuickPay with a Clear Fee Structure
QuickPay isn’t just a benefit for carriers; it’s also an opportunity for brokers to generate revenue. A well-defined fee structure is essential for maintaining transparency and ensuring that QuickPay remains a profitable service.
To monetize QuickPay, brokers should establish a fee structure that charges for next or 2-3 day payments. Many brokers use a tiered fee structure based on the amount of the payments or the speed of payment.
Here’s an example of a fee structure based on payment speed:
- Next-day payment: 5% of the invoice amount
- 2-day payment: 3% of the invoice amount
- 5-day payment: 2% of the invoice amount
- 10-day payment: 1% of the invoice amount
- 30-day payment 0% of the invoice amount
These percentages are examples of what brokers could charge, and the fees can be adjusted based on market conditions, carrier demand, and the speed of payments offered. Establish a fee structure that aligns with your business goals and provides value to your carriers.
Best Practices for Setting QuickPay Fees:
- Communicate Clearly: Always inform carriers upfront about the fees associated with QuickPay. Transparency builds trust and encourages carriers to participate in the program.
- Use Tiered Fees: Offer a range of payment speeds and associated fees, giving carriers the flexibility to choose the option that best meets their needs.
3. Use Technology to Automate and Manage QuickPay Efficiently
Managing QuickPay manually can be time-consuming and prone to errors, especially when trying to keep track of hundreds of carrier preferences. Many brokers struggle to manage QuickPay selections using spreadsheets, which can lead to mistakes and added frustration. Leveraging technology can simplify the process, automate payments, and help you maintain control over your QuickPay policy, ensuring it remains consistent and reliable.
Best Practices for Using Technology in QuickPay Management:
Set Default QuickPay Fees: Utilize software that allows you to set default QuickPay fees, which are automatically applied to qualifying invoices. This reduces manual work and ensures that your fee structure is consistently implemented across all transactions.
Automate Carrier Selections: Integrations with systems like MCP or Highway allow carriers to select their preferred QuickPay options directly. These selections are automatically imported into your factoring solution, eliminating the need for manual entry and ensuring that each carrier’s preferences are accurately applied.
Leverage Payments Software: Use payment software that automates the entire payment process, ensuring that carriers are paid on time according to their selected QuickPay terms. Automated payments reduce the risk of late fees, missed due dates, and manual errors, keeping your carriers satisfied and your operations running smoothly.
How Denim Simplifies and Enhances QuickPay Management
One of the biggest challenges brokers face when offering QuickPay is managing the associated costs and back-office administrative tasks. Many factoring companies and payment processors charge brokers a fee just to offer QuickPay to their carriers, cutting into potential profits.
Denim offers a solution that removes these barriers, making it easy to add QuickPay to your offerings and keep more of what you earn.
Denim’s QuickPay Management:
- No Extra Fees: Unlike other platforms, Denim doesn’t charge brokers to offer QuickPay. You keep 100% of the QuickPay fees, turning every fast payment into pure profit.
- Flexible Control: Easily add QuickPay fees to jobs and adjust them as needed on each invoice. Denim gives you full control to set fees that work best for your business and carriers.
- Default Carrier Settings: Save time by setting QuickPay preferences at the carrier level, automatically applying them to all future invoices. No more tracking down carrier selections—Denim handles it automatically.
- Automatic Imports from MCP: Denim integrates with MyCarrierPortal (MCP) to automatically import carrier QuickPay preferences. This eliminates manual entry, reduces errors, and ensures each carrier’s preferred terms are always applied.
Denim’s QuickPay tools make it easy to offer multiple payment options, minimize administrative work, and capture the full revenue potential of QuickPay without the hassle.
Conclusion: Optimize Your QuickPay Strategy
QuickPay offers significant benefits for both freight brokers and carriers, but successful implementation requires careful management and adherence to best practices. By vetting carriers, setting a clear fee structure, and leveraging technology like Denim, you can create a QuickPay program that not only boosts carrier satisfaction but also enhances your brokerage’s revenue potential.
Denim’s platform simplifies the entire QuickPay process, allowing you to set default fees, track earnings, and reduce administrative tasks—all while keeping your carriers happy with fast, reliable payments. Whether you’re looking to improve carrier retention, increase transparency, or add a valuable revenue stream, following these best practices will ensure your QuickPay program is optimized for success.
Ready to streamline your QuickPay program and boost your revenue? Schedule a demo with Denim today to see how you can simplify your QuickPay process and keep more of what you earn.
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