General information about the impact of payment errors on businesses in New Zealand based on past studies and reports;
According to a survey by Xero, payment errors are a significant issue for small businesses in New Zealand. The survey found that 30% of small businesses had experienced payment errors in the past year, with an average cost of NZD $5,273 per error. The most common payment errors were overpayments, followed by underpayments and incorrect payment details.
In addition, a report by Deloitte estimated that payment errors can cost businesses up to 1% of their revenue each year. This includes direct costs such as refunds, chargebacks, and bank fees, as well as indirect costs such as staff time spent correcting errors and managing customer complaints.
These statistics highlight the significant impact that payment errors can have on businesses in New Zealand, particularly for small businesses that may have limited resources to manage and correct these errors. Implementing effective payment processes and controls can help businesses reduce the risk of payment errors and minimize the associated costs.
