Below are the core benefits of ePayables that make them a strategic investment for AP and treasury leaders. After approval, the system generates a virtual card or digital payment instruction. This secure, one-time-use method replaces paper checks or ACH transfers and speeds up the payment process significantly. The finance team generates a virtual card for each vendor in their accounts payable platform. The virtual card is only used for the assigned vendor; no other transactions are run through the virtual card. The virtual card doesn’t carry a epayables balance, it only draws funds from the assigned bank account when approved by the AP team.
Treasury & payments
Like traditional Purchasing and One Cards, virtual cards create rebate revenue opportunity. During supplier enrollment, a vendor can select ePayables as a form of payment. They are then assigned an individual 16-digit number, expiration date and security code.
Online Services
Maximize efficiency and control in your payment processes with our robust Treasury Management payables solutions. As more businesses look to make the move to AP automation and automating the accounts payable process, ePayables will become more common. Next was the Electronic Funds Transfer or EFT, which allowed businesses to make online payments to vendors and suppliers. The introduction of credit cards allowed businesses to how is sales tax calculated pay for items without the use of either. Supplier satisfaction is a part of maintaining a reliable supply chain, and epayables can play a key role in achieving that. Providing timely and accurate payments can facilitate improved trust and cooperation with suppliers.
Getting Suppliers on Board With ePayables
Epayables automation refers to the use of technology to automate the management and payment of supplier invoices. This includes coding invoices, routing them for approval, and issuing payment. Simplify B2B payments for the global travel industry with virtual card technology and flexible economics. Stampli’s newest payment innovation combines the flexibility of Stampli Direct Pay and the power of Stampli Card into the most intelligent and versatile ePayables solution on the market. We enable your AP team to code, approve, and pay supplier invoices with Stampli Card, ACH, Bookkeeping vs. Accounting and check, all within the award-winning Stampli AP automation platform. “Bank of America” and “BofA Securities” are the marketing names used by the Global Banking and Global Markets divisions of Bank of America Corporation.
- Directly route submissions to your team to kick off a process and collect signatures with ease.
- Finance teams must ensure that digital workflows still uphold segregation of duties, approval hierarchies, and data security standards, particularly when handling virtual card data.
- Make card payments with secure delivery and better controls than ACH and check payments.
- We’re ready to focus on the specific needs of your company—and where you are in your business lifecycle.
- This link takes you to an external website or app, which may have different privacy and security policies thanU.S.
- Make your business trips smoother with simplified expenses and spending insights.
Cards
Virtual credit card numbers are coded for a specific supplier and an exact amount, and you control payment timing. Each virtual card number serves as a unique payment identifier and payments contain detailed remittance information. Electronic virtual payments also save time by removing paper documents from the reconciliation process. Epayables platforms are designed to offer enhanced security measures, including encryption and authentication, to protect sensitive financial information.
- 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.
- Complete the P2P lifecycle and improve vendor relationships with integrated vendor payments.
- Using a virtual credit card can help reduce fraud risk since it prevents the sharing of your actual credit card details with suppliers.
- Explore why HighRadius has been a Digital World Class Vendor for order-to-cash automation software – two years in a row.
- An ePayable payment usually deposits the funds into a vendor’s bank account within two business days.
- Yet it’s only a matter of time, since every new technology needs time to spread from a niche of savvy early adopters who have seen its potential to the mainstream.
Solve current challenges and meet evolving needs for your organization with Truist Commercial Card solutions. Maximize supplier acceptance with the help of Truist’s B2B acquirer partnerships. The best way to understand ePayables is to see the step-by-step process used in fulfilling a transaction.
- To succeed, you need buy-in from every affected department, including procurement, AP, accounting, IT, and senior management.
- This involves collaborating closely with compliance, audit, and IT teams to update governance documentation, ensure PCI compliance, and adjust financial reporting practices.
- Gain access to a team of experts who help clients by identifying and enrolling suppliers who accept card payments.
- This method leverages the credit card system, where every vendor is assigned a specific number.
- While some ePayables platforms do support ACH as one of many payment options, virtual cards are the more common and secure method.
Virtual vs. Single-Use Accounts
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 a digital-only payment method that uses virtual cards, each assigned to a specific vendor. The virtual cards are connected to a bank account and will draw the funds necessary to complete the payment, but with an added layer of security. In fact, at last count approximately 31% of companies reported that they’ve already begun using this secure and quick form of payment.
Customizable controls
Once you’ve developed your business plan, begin reaching out to suppliers to get them on board. Ensure your strategy includes the flexibility to adapt as you add new suppliers, or if your procurement needs change. Some ePayables programs let you earn rebates or financial incentives based on your total spend amount, opening up an additional revenue stream.
Understand your AP department’s specific requirements and pain points and choose an epayables solution that aligns with your organization’s business goals. Ensure your epayables solution can integrate with your existing accounting and enterprise resource planning (ERP) systems. Streamline processes, reduce fraud and gain insights for better financial management. Empower your customers to make global business payments with speed and transparency. Vendors will receive an invitation e-mail to use this web application, so they can manage and send their invoice(s) online. To gain deeper insights into how various players in the space compare, Javelin Strategy & Research released its 2024 Commercial ePayables Scorecard.
