A Comprehensive Guide on Using an ePayables Platform

The best way to understand ePayables is to see the step-by-step process used in fulfilling a transaction. Gone are the days of writing a check, stuffing it in an envelope, and sending it off to its destination, hoping it doesn’t get lost or stolen along the way. Sign up to receive our business insights, thought leadership, and client success stories that can help inspire your next bold business move. Work with a partner who sees your vision and has the resources to help you achieve it. We’re ready to focus on the specific needs of your company—and where you are in your business lifecycle.

Fraud prevention

These virtual cards are issued and processed through a partnering financial institution. The realization that the risk of a card transaction has more to do with procurement channel controls than the size of the transaction has companies making concerted efforts to boost their card spend levels through ePayables solutions. The smart strategy is to evaluate purchase channels, utilize the lowestcost channel based on efficiency and risk considerations, and introduce card payments into the buying process where it can add further efficiency.

• While the transition may involve some upfront effort, like vendor onboarding and system integration, the long-term benefits make it worthwhile.
• Learn how to expertly execute global payments for streamlined accounts payable and business efficiency.
• In the case of ePayables, it has a 16-digit card number, an expiration date, and a card verification code (CVC).
• 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.
• The 16-digit number and CVC are consistent and the card can be used until its expiry date.
• The remittance advice can be sent to multiple email addresses or one fax number.

Buyer-initiated vs. Supplier-initiated Options

• Automate accounts payable while simplifying and securing end-to-end AP processes by eliminating manual steps and insecure paper methods.
• If you currently receive one check for multiple locations, you will maintain one card account number on file and the remittance advice will identify the appropriate location by invoice number, date and amount.
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• With these headwinds, it’s vital to present a strong value proposition for suppliers.
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Efficiency improvement is often greatest when a card payment can replace a check payment, and card products can be used as a settlement mechanism in most procurement channels. You will receive the card account information via secure email or directly from us. At that time you can provide your Card Authorization Form to us for signature and maintain that form with the card information. Each remittance advice is your authorization to process the credit card transaction for the exact amount indicated. Virtual credit cards function like traditional physical credit cards but they generate a temporary card number that can be used for a single transaction. Some businesses use the same virtual card number for repeat transactions epayables with a supplier to simplify reconciliation.

Are there other card payment options if our company policy does not allow us to keep a card account number on file?

• They serve as virtual credit cards, providing an  electronic payment alternative to checks.
• That same study reported that 33 percent of respondents said they expected to expand their usage of cards and ePayables by 2021.
• Implementing an ePayables solution can bring significant long-term benefits—but it also requires upfront planning, cross-functional collaboration, and change management.
• Cards also provide rich transaction-level data, and supplier management reports help identify spending patterns with particular vendors.
• The transaction is settled almost instantly or within 1–2 business days, giving them quicker access to funds and improving cash flow on their end.

Setting up ePayables involves collecting vendor information and educating them on the process. Be prepared to spend some time with each vendor setting up their accounts, the virtual card, and answering their questions. The fee is the same as traditional credit card processing fees, typically ranging from 1.3% to 3.5%, depending on the payment processor. The vendor will receive a notification that the virtual card has funds added to it. At this point, the payment hasn’t been Retained Earnings on Balance Sheet made as the vendor still needs to process the payment in their payment processor.

Payables 8 advantages of digital payments for your business

Once current-state processes are captured, it should be much easier for AP groups to measure their key performance and operational metrics. This can include invoice volumes by segment, metrics around invoice accuracy, and performance (accuracy and timing) within each phase. The Ardent framework can then be used https://www.ampera-form.com/2022/02/21/static-budget-what-is-it-vs-flexible-budget/ to determine which category of solution provider to investigate further. It takes time and effort to build a business case for investments in automation, but having an understanding of the framework of the AP function will put your department on the right path towards a transformation project.