Maximizing Profit and Efficiency: Best Practices for Implementing QuickPay in Your Freight Brokerage

QuickPay: A Strategic Tool for Freight Brokers and Carriers

QuickPay is a valuable service for freight brokers, providing carriers with faster payments—typically within 24-48 hours instead of the standard 21-30 business days. Beyond improving cash flow for carriers, QuickPay can be a strategic advantage for brokers. It can help attract top-tier carriers, improve retention, and even serve as a new revenue stream.

However, implementing QuickPay requires careful planning and communication to maximize its benefits and minimize risks.

Best Practices for Managing a QuickPay Program

In this guide, we’ll cover best practices for managing a successful QuickPay program, including how to navigate fraud risks and leverage the right tools to make your program profitable.

1. Vet Your Carriers: Avoiding QuickPay Fraud

One key challenge brokers face is distinguishing between legitimate QuickPay requests from trusted carriers and those from fraudsters or double brokers trying to get paid before being caught. QuickPay fraud poses significant risks, including financial losses and damage to your brokerage’s
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 work with verified, reliable carriers.

- Limit QuickPay to Trusted Carriers: Consider offering QuickPay only to carriers with a proven track record to minimize risk.

- Regularly Monitor Performance: Keep a close watch on carrier performance and payment history to spot any unusual patterns. For instance, if the name on the invoice doesn’t match the bill of lading, it could be a red flag.

Double brokering scams have cost the industry over $700 million. Staying vigilant and spotting red flags before approving QuickPay requests can protect your brokerage from falling victim.

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 additional revenue. A well-defined fee structure is crucial for transparency and ensuring that QuickPay remains a profitable service.

To monetize QuickPay, brokers can set a fee structure that charges based on the speed of payment, offering carriers flexibility while generating revenue for the brokerage.

Example 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%

These percentages can be adjusted based on market conditions, carrier demand, and payment speed. Establishing a fee structure that aligns with your business goals can turn QuickPay into a valuable revenue stream.

Best Practices for Setting QuickPay Fees:

- Communicate Clearly: Be upfront with carriers about the QuickPay fees. Transparency builds trust and encourages participation.

- Use Tiered Fees: Offer different payment speeds with varying fees to give carriers flexibility in choosing the option that best suits their needs.

3. Use Technology to Automate and Manage QuickPay Efficiently

Managing QuickPay manually can be a time-consuming and error-prone task, especially when dealing with numerous carriers. Many brokers struggle with keeping track of carrier preferences using spreadsheets, leading to mistakes and inefficiencies. Technology can help streamline the process, automate payments, and maintain control over your QuickPay policy.

Best Practices for Using Technology in QuickPay Management:

- Set Default QuickPay Fees: Use software that allows you to set default QuickPay fees, automatically applying them to qualifying invoices. This reduces manual work and ensures consistency.

- Automate Carrier Selections: Integrating systems like MCP or Highway allows carriers to choose their QuickPay options directly, with their selections automatically imported into your system. This eliminates manual entry and ensures accuracy.

- Leverage Payment Software: Payment automation software ensures that carriers are paid on time according to their selected QuickPay
terms. Automated payments reduce the risk of late fees, missed deadlines, and manual errors, keeping operations smooth and carriers satisfied.

Conclusion: Optimize Your QuickPay Strategy

QuickPay provides significant benefits for both freight brokers and carriers, but successful implementation requires careful management. By vetting carriers, setting a clear fee structure, and leveraging technology, you can create a QuickPay program that not only improves carrier
satisfaction but also adds a valuable revenue stream to your brokerage.

Following these best practices will help you optimize your QuickPay program for success, boost your revenue, and ensure a smooth,
efficient process for both your brokerage and your carriers.