The goal of a Straight-Through Processing (STP) system is to streamline processing so that the entire payment cycle follows an automated process from the initiation of the transaction to finalizing the payment. STP speeds up financial transaction processing through efficient data sharing. The goal of an STP.
Since STP requires no manual intervention, it is significantly faster and more efficient than traditional methods, which require a virtual gateway, physical card reader, POS system, or physical checks.
How STP Works
While STP technologies vary by the type of payment being processed, here are a few of the technologies that comprise STP for smooth processing.
- Optical character recognition (OCR): This technology converts scanned or printed text into digital machine-encoded text. It also analyzes and recognizes characters within an image and converts them into an editable and searchable digital document.
- Digital signature protocol: This set of rules and procedures is used to generate, verify, approve and manage digital signatures. It generally incorporates additional security features, such as time and date stamping to prevent later tampering.
- Document routing mechanism: This system automatically determines the routing information of a document within a company’s workflow while complying with all organizational requirements. It involves rules and procedures for directing a document from its source to its destination while ensuring that it reaches the appropriate department or individuals for final review, approval or further action if needed.
- Data reconciliation: This is the comparison and alignment of data from different sources. It is used to identify inconsistencies or discrepancies and take the appropriate actions to reconcile the information and ensure data accuracy.
- Data monitoring and mapping: This process captures data from multiple locations and then monitors that data in real-time to create visual representations or maps of that data. This helps organizations to detect patterns, gain insight and make informed decisions.
- Electronic payment generation: This is the initiation of electronic transactions to make payments electronically with no human intervention. It converts payment requests into electronic formats and transmits them to financial institutions for further processing.
Getting Started with a Successful STP System
The key components of a successful STP system include a solid technical infrastructure capable of facilitating electronic transfers and an efficient network system for data exchange. It also requires effective system integration, advanced error detection analytics and quick customer response capabilities.
Capabilities include:
- Ability to accept payments from bank transfers, e-wallets, cards and 26+ other methods.
- Automated payment verification to streamline your payment processing.
- Easy integration with popular e-commerce platforms.
Want to get started with STP digital payments today?
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