Making payments securely and efficiently has never been easier with the onset of digital payment methods. If you’re still depending on checks, you’re losing precious time and money on every payment processed. It begins when the purchasing authority provides a dedicated credit card number to the supplier to keep on file.
What are ePayables? The Benefits of Electronic Payables in Business
Before implementation begins, a thorough readiness assessment is essential. This includes reviewing current accounts payable processes, supplier payment methods, and system integrations. Understanding how invoices are received, https://www.bookstime.com/articles/what-is-invoice-factoring approved, and paid will inform the design of the new ePayables workflow.
Instant invoice data capture
- The evolution of accounts payable is well underway, and ePayables stand at the forefront of this transformation.
- The supplier charges the virtual card, and funds are deposited into their account.
- This is why an epayables solution is the preferred method of payment for modern brands.
- A low error rate indicates strong process integrity and effective reconciliation.
- According to a 2021 survey of AP departments by Stampli, 61% of companies make virtual card payments, and 63% have a program to convert suppliers to accept virtual payments.
- They are widely adopted across industries managing complex supply chains and large-scale procurement processes, like retail, manufacturing, logistics, and professional services.
- Enrollment required and fees may apply (including an auto-renewing monthly platform access fee).
The vendor will receive a notification that the virtual card has funds added to it. At this point, the payment hasn’t been made as the vendor still needs to process the payment in their payment processor. Each virtual card has its own payment information, much like a regular credit card. The virtual card has a 16-digit credit card number and CVC used to fulfill the payment.
Solution Guide
While ePayables often deliver ROI in the form of cost savings and rebates, the initial setup can still require a financial and operational commitment. Companies may need to ePayables budget for software licenses, integration services, or onboarding support from their provider. There’s also the time investment required from AP, IT, and procurement teams.
ACH (Automated Clearing House) payments are direct bank-to-bank transfers, whereas ePayables typically use virtual credit cards issued at the time of invoice approval. Achieve greater efficiency and better money management with the powerful combination of BILL’s virtual cards and AP automation. Our platform is built to automate the menial tasks of invoice processing and processing payments so your teams have more time doing the high value work that truly impacts a business. Consider a manufacturing enterprise that manages payments to hundreds of suppliers, each with different preferences ranging from ACH and wire transfers to traditional paper checks. Without an integrated solution, handling these varied payment types individually leads to inefficiencies, higher processing costs, and greater reliance on manual intervention. From faster payments and improved cash flow to lower processing costs and enhanced security, ePayables improve the financial health of an organization while strengthening operational resilience.
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The use of ePayables and virtual cards for B2B payments is growing, and they are quickly becoming an alternative to checks and ACH in the accounts payable payments process. A 2021 study by Juniper Research predicts that the global value of virtual card transactions, including ePayables, will grow from $1.9 trillion in 2021 to $6.8 trillion in 2026. And a 2022 report by PYMNTS.com indicates that 55% of CFOs now use ePayables more frequently, and 40% have reduced their paper check usage.
- EPayables are essentially virtual cards that act as electronic payment alternatives to paper checks, where each vendor is assigned a card.
- The payment terms are generally similar and transactions are processed in batches.
- Every transaction is logged with detailed data including who requested the card, who approved the invoice, when it was charged, and which supplier received the funds.
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- No, ePayables are not the same as ACH payments—while both are digital, they use different technologies and offer different levels of control and security.
- Once the ePayables process is in place, its impact extends far beyond faster payments.
According to MineralTree, businesses that adopt https://skinlaseronline.com/basics-of-cost-accounting-pptx-business-accounting/ integrated payables can achieve up to a 60% reduction in payment processing costs. Integrated payables become even more effective when combined with accounts payable automation. Automation helps streamline invoice approval, reduce errors, and ensure that payments are sent on time through the right channels.
It is designed to integrate with your existing AP systems to help streamline your payment, billing, and reporting processes. Enrollment required and fees may apply (including an auto-renewing monthly platform access fee). The no cost program provides Ford’s production suppliers, initially in North America, including Canada and Mexico, with a comprehensive toolkit to access renewable energy.
key benefits of ePayables
Comparing the total cost of ownership for traditional systems versus ePayables can help paint a clear picture. Include both hard savings (direct cost reductions) and soft savings (time saved, reduced risk). CFOs and finance leaders are increasingly prioritizing automation and digital tools to improve efficiency and resilience.