For AP professionals and finance managers, understanding and leveraging an epayables platform can be a game-changer. Both boost efficiency, but differ in fees, rebates, and control over transaction details. Implementing an ePayables solution can bring significant long-term benefits—but it also requires upfront planning, cross-functional collaboration, and change management. Below are five of the most common challenges businesses face when shifting from traditional payment methods to an ePayables model.
B2B Payments
Once the invoice is approved, payment is ordered and the supplier’s credit card account is funded with the payment amount. This is typically done in a bulk payment to an entity like Bank of America with notes on which cards to fund to the appropriate vendors. The bank will then process the A/P file and find the specific card numbers to add money. A Bank of America Small Business checking account is required to apply for a Merchant Services account.
- Paper checks incur costs at every stage—printing, postage, bank fees, and labor.
- With the right training, support, and involvement in the implementation process, internal buy-in is achievable and crucial for long-term success.
- When the supplier sends an invoice, the buyer pays the supplier by instructing their financial institution to transfer the invoice amount to the virtual card.
- Earn rebate on card and ACH spend while reducing your manual processing costs.
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The convenience and benefits of ePayables are often worth the cost to your vendors, making them a go-to choice for modern payment workflows. EPayables gives you control over when the money is taken out and allows you to schedule payments based on the working capital available to you. When you’re reconciling a credit card statement, you must confirm line-by-line what each transaction is.
Pilot Programs for New Use Cases
Doug Clark has served as Founder, President, Chief Executive Officer, and a Director of Corcentric (formerly AmeriQuest) since 1996. His professional experience includes stints in public accounting, investment banking, and as a technology and transportation entrepreneur. Choose epayables software that can grow with your business and accommodate changing transaction volumes. To gain deeper insights into how various players in the space compare, Javelin Strategy & Research released its 2024 Commercial ePayables Scorecard.
They also align closely with the broader benefits of AP automation, such as faster processing, improved visibility, and reduced costs. When implemented effectively, integrated payables can completely transform the way finance teams manage outgoing payments. The benefits go beyond convenience and extend into cost savings, visibility, and stronger supplier relationships. By implementing an integrated payables solution, the company can consolidate these workflows ePayables into a single payment file. The system intelligently routes each payment according to the supplier’s preferred method, automating execution, reducing processing time, and minimizing errors.
Faster reconciliation and better visibility also help suppliers plan their cash flow more confidently. This strengthens trust, fosters long-term relationships, and can even lead to preferred pricing or terms. EPayables reduces expenses tied to paper checks, postage, bank transaction fees, and manual processing tasks. With fewer manual interventions, organizations save on labor while also minimizing the cost of errors and rework. These savings compound over time, particularly in high-volume AP environments.
- Companies may need to budget for software licenses, integration services, or onboarding support from their provider.
- By reducing the reliance on paper-based processes, businesses can help mitigate the risks of check fraud and other security breaches.
- With additional options like virtual Cards, you’ll be able to set Card limits and keep track of your employee spending.
- The supplier processes the payment by charging the virtual card for the invoice amount.
- For financial leaders aiming to streamline operations and prepare for the future, ePayables represent a smart investment.
- Because payment data is automatically linked to invoice and accounting records, reconciliation is streamlined.
- Gain access to a dedicated relationship manager who will take time to understand your goals and help you choose the best solutions to reach them.
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Late payments damage supplier relationships and may incur financial penalties or interest charges. By automating the payment process and enabling real-time tracking, ePayables help ensure that vendors are paid on time and in full. This reliability builds trust and positions businesses as preferred partners, especially in industries https://adalhome.com.au/accounting-for-startups-the-founders-guide-2025-2/ with competitive supplier markets. Traditional payment methods like checks and ACH transfers present significant fraud risks. Checks can be stolen or forged, and ACH payments require sharing sensitive bank account information.
- Identifying best practices in Accounts Payable automation while strengthening trusted partnerships as an extension of the payables team.
- EPayables are processed like card payments and are subject to standard merchant pricing.
- As usage increases, opportunities arise to integrate ePayables more deeply into the broader financial ecosystem.
- Once you’re set up, you’ll have access to virtual cards that can be connected to vendors, protecting you against fraud attempts in addition to making payment processing a breeze.
- Programs, rates, terms and conditions are subject to change without notice.
- Access robust digital capabilities, including reporting, integration and more.
Some businesses extend virtual card usage to online bookkeeping employee expenses or project-based spending. This enhances visibility into off-cycle purchases and allows central control over distributed spending. Because payment data is automatically linked to invoice and accounting records, reconciliation is streamlined.
This includes invoice numbers, vendor information, line-item details, and payment status. Real-time reporting capabilities allow for instant visibility into spending patterns, payment trends, and department-level financial performance. This card is issued by Western Alliance Bank and its divisions pursuant to a license from Visa USA Inc. Payer Direct Hub is provided by Bora Payment Systems in agreement with Western Alliance Bank. EPayables are virtual payment cards that businesses can use to pay suppliers.
