Virtual Payables: B2B Virtual Card Payment Solutions

Your ePayables provider may also be able to advise you on other ways you may be able to engage suppliers, such as incentive packages. Choosing the right payment method https://www.sisorganizers.com.br/bookkeeping-2/the-best-business-accounting-software-services-of/ is critical for optimizing your AP operations. While all three—ePayables, ACH, and checks—can be used to pay vendors, each method comes with distinct capabilities, risks, and strategic advantages.

Why Bill Pay Is an Underutilized Touchpoint for Financial Institutions

While the majority of ledger account payments are still made by check, these numbers are declining. The growth of purchasing card use continues at double-digit rates fueled by efforts to automate, realize cost savings, and reduce cycle time, effectively improving cash flow. One top area for growth includes expanding into new spend categories with ePayables.

Treasury Management

• Ensure your epayables solution can integrate with your existing accounting and enterprise resource planning (ERP) systems.
• As a result, solution providers that offer products that automate the ‘Receive’ portion of the AP process often differ in their approach.
• AP is a form of credit that suppliers offer to their customers by allowing them to pay for a product or service after it has already been received.
• The supplier will then process the payment by drawing down the amount of invoices paid and charging the card number.
• EPayables can help automate approval processes that cause significant bottlenecks and result in costly human errors.

By focusing on a level playing field approach that highlights a win-win outcome, you will create lasting partnerships with suppliers, driving mutual success. To function effectively, an ePayables platform needs to integrate with your existing ERP or accounts payable software. Without tight integration, payment data can become siloed or out of sync, leading to errors in reconciliation and reporting.

Processing

These savings compound over time, particularly in high-volume AP environments. EPayables and ACH payments are both electronic payment methods offering paperless payment solutions. They do share similarities, but let’s look ePayables at where their processes and features differ.

• EPayables cards are usually provided by credit card providers such as Visa, Mastercard, or financial institutions like Bank of America.
• Involve CFOs, controllers, and treasury leaders from the start to define success metrics, allocate resources, and help drive cross-functional cooperation.
• They offer more speed, traceability, and control over the accounts payable process.
• Clients look to banks and other financial institutions to help improve internal cash flow management practices through payments optimization and access to capital to propel future growth.
• This can include invoice volumes by segment, metrics around invoice accuracy, and performance (accuracy and timing) within each phase.

The 2018 RPMG Purchasing Card Benchmarking Survey reported EAP spending grew, on average, by 10.9% per year. Going forward, 75% of all EAP-using respondents expect increases in EAP account spending over the five year period from 2018 to 2022. EAP spending is expected to rise to $127 billion by 2022, a 42% increase from 2017. EPayables are virtual payment cards that businesses can use to pay suppliers. 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. The supplier charges the ePayable, and the money is transferred to their bank account.

Finding ways to enhance supplier partnerships is often a strategic goal of many companies, and the right supplier enablement program can help make that happen. The term epayables refers to electronic payables, the digital handling and processing of payments. Unlike traditional payment methods involving paper checks, epayables use electronic methods to settle invoices and manage transactions. The shift from manual to digital payments helps reduce the need for physical documents and transforms payment processes. EPayables offers a modern and efficient way for businesses to manage vendor payments.