Tag Archives: benefits


Public Schools Benefit from Electronic Payments

Technology is drastically changing how we do business. Public schools need services that are simple, efficient, and effortless. In this fast-paced, high-tech economic landscape, the pressure is on for public officials to do more with less.  Electronic payments enable schools to pay vendors more efficiently and securely. By adopting an automated ePayables solution, schools can … Read More

An AP Pro’s Guide to Convincing Suppliers to Adopt Electronic Payments

Businesses cite lots of reasons for continuing to pay suppliers with paper checks … … Inadequate resources to manage the transition … Lack of senior management support or mandate … Competing priorities … Fear of change But one of the biggest things keeping businesses from migrating to electronic payments is the misperception that their suppliers … Read More

Public Schools Benefit from Electronic Payments

Technology is drastically changing how we do business. Public schools need services that are simple, efficient, and effortless. In this fast-paced, high-tech economic landscape, the pressure is on for public officials to do more with less.  Electronic payments enable schools to pay vendors more efficiently and securely. By adopting an automated ePayables solution, schools can digitize their accounts payable process along with other benefits:

  1. Rebates and Cost Savings
    • Payments made through our secure network, will help your school earn cash back rewards. Every payment made via virtual card earns a rebate and quarterly your school receives a direct deposit with your cash back rewards. Your school will also see thousands of dollars in cost savings from process improvement.
  2. Time Savings
    • You can approve and process all of your payments with the touch of a button. There is no need to print, sign, stuff and mail checks. You simply login to Paymerang, upload your payment file, fund your batch, and mark the items as paid and you’re done. Your finance team now has more time to focus on more mission-critical initiatives that will help your school deliver world-class education.
  3. Faster Payments
    • We’ll take care of processing all payments and handling reconciliation and follow-up. Payments are processed the same day we receive funding, so vendors get paid more efficiently.
  4. Increased Security
    • All payments made through our network, shield you from fraud. We encrypt all of your payment data and restrict system access using two-factor authentication. Card payments are made with virtual debit cards that are pre-loaded with the exact payment amount. For supplier that prefer ACH payments, we confirm the identity of your vendors and invite them to sign up for ACH direct deposit through a secure login. Our secure process shields you against phishing attacks and protects against fraud.
  5. Business Continuity
    • New research shows that just over 60% of organizations have a continuity plan in place, but only 37% actually have the necessary technology to enable employees to work from home as part of their strategy. The study reveals a similar gap in technology preparedness in connection to mission critical processes like managing invoices and making payments. Our cloud-based solution is an integral part of school’s business continuity plans because it enables you to make vendor payments from anywhere. Our team of payment specialists ensure payments are made on time, with no disruption, to ensure that the valuable supply chain and your school can continue to move forward.

By partnering with an epayables provider and adopting electronic payments, your school will see immediate cost and time savings and faster payments to vendors. You will also shield your school from fraud and generate cash back rewards. Replacing the tedious and risky process of check processing will allow your school to focus on higher-level initiatives that will support your mission of providing excellent education to students.

If your business is evaluating payment solutions providers, Paymerang wants to speak with you.

An AP Pro’s Guide to Convincing Suppliers to Adopt Electronic Payments

Businesses cite lots of reasons for continuing to pay suppliers with paper checks …

… Inadequate resources to manage the transition

… Lack of senior management support or mandate

… Competing priorities

… Fear of change

But one of the biggest things keeping businesses from migrating to electronic payments is the misperception that their suppliers won’t accept them.  The reality is that most suppliers want to receive more payments electronically.  Electronic payments provide suppliers three big benefits

1. Lower cost of doing business: Electronic payments result in less paperwork and fewer posting errors for suppliers.  Electronic payments also are deposited directly into a supplier’s bank account, eliminating the need to process checks, make trips to a bank to deposit checks, or pay for a pricey bank lockbox service.  And the visibility and predictability of electronic payments reduces the time that suppliers spend chasing outstanding payments.  The cost savings from electronic payments often dwarf the merchant service fee paid by suppliers.  

2. Improved cash flow: Electronic payments reduce a supplier’s receivable cycle.  For starters, electronic payments arrive faster than paper checks and there is no chance that a virtual card or ACH transaction will become lost.  Suppliers can track the status of an electronic payment, and they can always count on it arriving on time.  Many buyers will even pay a supplier early in return for a discount on the invoice-due amount.  And some buyers will tier their payment terms to incentivize suppliers to accept electronic payments; the payment methods that are most desirable to the buyer will offer the shortest payment terms.  Additionally, virtual card and ACH transactions are directly deposited into the supplier’s bank account, eliminating the possibility of lost float if busy staff cannot make a trip to the bank to deposit payments.  And the rich remittance detail that accompanies electronic payments streamlines the matching of payments and open invoices as well as cash application.  Electronic payments also are reconciled in real-time, improving the accuracy of cash flow reporting and forecasting.  

3. Higher sales: Accepting virtual card payments can raise a supplier’s standing with its customers, opening the door to more opportunities to capture more orders. 

Each of these benefits is tantalizing to suppliers. 

How to convince suppliers to accept electronic payments

As compelling as these benefits are, businesses still need to convince suppliers to accept electronic payments.  Here is a step-by-step guide to ensuring strong supplier adoption of electronic payments:

Step 1: Analyze your spend file

The first step towards strong supplier adoption of electronic payments is to analyze your spend file to identify suppliers and purchases that are good candidates for electronic payments.  Consider key criteria such as payment value, the number of payments per supplier, the percentage of corporate spending represented by the supplier, the contractual relationship your business has with the supplier, the strategic importance of the supplier, and the supplier’s receptivity to electronic payments (e.g., have they asked to be paid electronically?).  An electronic payment solutions provider can review your spend file to identify suppliers that already accept virtual card payments from other businesses.

Step 2: Segment your suppliers

The insights provided by a spend analysis will enable you to segment your suppliers and develop a proposed approach to electronic payments for each one.  Work with stakeholders such as treasury and procurement to create a plan for strategic and non-strategic suppliers as well as suppliers of large-ticket items, contracted suppliers, suppliers of commodities, and one-time suppliers.  Don’t fall into the trap of thinking that only strategic suppliers are candidates for electronic payments; many businesses make most of their payments to suppliers who don’t represent most of their spend.

Step 3: Engage your suppliers

Engaging suppliers starts with ensuring that you have current contact information for each one.  Be sure to make any updates to your vendor master database.  Once you have the contact information in-hand, you can begin engaging suppliers based on the plan you developed for their segment.  The engagement plan for each segment might include telephone calls, e-mails or mailed letters and should detail when each supplier segment will be engaged.  Be sure each printed or e-mailed communication to suppliers reflects your corporate branding, includes the telephone number and e-mail address of a person the supplier can contact for more information, is customized with a message for the supplier’s segment and clearly articulates the benefits that suppliers will achieve by accepting electronic payments.  Telephone calls to suppliers should be carefully scripted with suggestions for tackling objections.  It is also a good idea to provide stakeholders with a list of Frequently Asked Questions (FAQs).  While suppliers should be given opportunities to immediately opt into your electronic payments program, don’t be surprised if it takes multiple attempts to get a response from suppliers. 

Step 4: Support your supplier

No one likes to feel abandoned.  That’s why it’s critical to develop a plan for supporting suppliers after they enroll in your electronic payment program.  Your plan should address the administrative process for onboarding suppliers, initial and ongoing support, and any bank-related issues.

Step 5: Don’t stop onboarding

It’s tempting to shut down your onboarding efforts once you’ve reached your goals.  But a better approach is to analyze your spend file on an ongoing basis to identify opportunities to onboard suppliers.  Over time, your supplier base will change, supplier contracts will come up for renewal, decision-makers who were resistant to electronic payments will leave, negative perceptions of electronic payments will soften, and your business will gain more leverage with some suppliers.  All these scenarios are a chance for you to engage with suppliers to drive additional adoption.

Following these five steps will ensure that you achieve optimum supplier adoption of your electronic payment program.  Do these steps daunting?  Don’t worry, electronic payment solutions providers can help you at each step of the way in driving supplier adoption, relieving you of the burden.

Ready to migrate your suppliers to electronic payments?  Schedule a demo.