What a Canada Post lockout means for B2B businesses

What’s going on?

A postal lockout could be imminent. Canada Post originally issued a notice to the Canadian Union of Postal Workers (CUPW) that its 50,000 employees would be locked out today as negotiations have failed to reach a contract, then extended it to Monday, July 11. The latest update reports that Canada Post has agreed to the CUPW’s request of a 30-day cooling off period. Both parties will continue to negotiate during this period in hopes of reaching an agreement before the extended deadline expires and a lockout occurs.

If negotiations do not yield a resolution, mail deliveries will be affected. If the work stoppage occurs, the majority of mail service will be halted – with the exception of mail deemed essential by the government (child tax benefits, disability benefits, old age security pensions, etc.) delivered on the 20th of each month.

Canada Post

Preparation for the potential disruption to mail service has already resulted in a 75% decline in eCommerce parcels and a 50% decline in letter mail. If a work stoppage occurs, mail will remain in Canada Post’s warehouse and distribution centers until an agreement is reached.

How does this affect B2B businesses?

A postal lockout has dire ramifications for your B2B business if you get paid primarily via mailed cheques. A halt to mail services will impact your ability to get paid and result in stagnant cash flow.

Whether you’re a B2B business, professional service, or any business that still accepts cheques exclusively, accepting credit cards is something to consider. There are many benefits like increased security and convenience, not to mention that many businesses nowadays prefer and expect to pay with credit cards. Below are some of the benefits you can reap by accepting credit cards.

How accepting credit cards will benefit B2B businesses?

  • Increased cash flow. Rather than waiting days for a cheque to clear, you can get paid in seconds with credit cards. Credit card payments also mean no more waiting for payment to be mailed or chasing NSF cheques.
  • Increased revenue. More and more businesses prefer to pay with credit cards. Don’t turn away any business by not allowing your customers to pay how they want. Online B2B sales generated $780 billion in 2015, and by 2020, that number could increase to $1.13 trillion.
  • Robust reporting. By accepting credit cards, you get instant insight about your business. You can easily keep track of all your payments received, and your accounting team will thank you because not only is it a more efficient recording system, many allow the data to be exported directly into accounting software.
  • Higher security. Security features like EMV and tokenization make accepting credit cards more secure than ever these days.
  • More channels. Credit cards pave the way for payment via multiple channels and limitless opportunities for business growth. We’ve seen first-hand that businesses that accept payments in multiple ways grow much faster. Credit cards allow you to accept payments using:
    • Web terminal: accept credit cards on any web browser on any device.
    • Recurring billing: set up automated payment plans.
    • Invoicing: email invoices and get paid on a hosted payment page.
    • Traditional terminals: accept credit, debit, and mobile NFC payments.
    • Mobile: accept payments on the go with a card reader or mobile app.
    • eCommerce: accept payments securely over the web.

Talk to a Payment Advisor today about accepting credit cards for your B2B business.

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