The world of electronic supplier payments is growing rapidly. Companies are making the transition to eliminate check writing and move to secure electronic payment (ePayment) platforms. The time savings, fraud prevention, and cost savings have already convinced many companies to outsource their accounts payable disbursements. Traditionally, banks have been the trusted adviser in this new world, but are they the best choice? Sending over some card payments, ACH transactions and wire transfers does not constitute a holistic ePayments solution. And yet, that is exactly what many companies are doing. Fractional bank solutions do not provide the best opportunity to transform your AP department. CFOs and Controllers should be asking the following questions:
- Will I still need to reconcile my accounts?
- Do I need to open a line of credit to process my card payments?
- Who does all the work in enrolling new vendors after initial setup, and what level of service is provided to these vendors?
- Will you make sure I am compliant with NACHA, OFAC and PCI?
If the answer to any of these questions results in additional work for your AP department or does not mitigate your risk—a fractional bank solution is not in your best interests. A complete ePayment platform will allow you to gain operating efficiency, reduce or eliminate check writing, provide generous cash rebates, ensure compliance and protect your funds in the most secure environment possible.