What Do You Need To Know About Electronic Payments?

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Electronic Payments
Electronic Payments

What are Electronic Payments?

Electronic payments have become increasingly popular in the business world. They offer businesses a number of advantages over traditional payment methods like checks and cash, including lower costs and more efficient payment terms.

With most electronic payment methods, the hard costs and fees associated with traditional B2B payments like checks are no more — including paper, postage, and manual labor expenses.

Electronic payments are also secure and convenient for both buyers and sellers. For example, you can use electronic payments to pay bills online or send money to friends using email addresses or mobile phone numbers.

Virtual cards are another type of electronic QR code payment method in which a merchant uses an external company to process payments through its own website without requiring any software integration or development work on their part. This can be beneficial because it allows merchants to accept payments from customers without having to worry about the technical details involved with integrating third-party systems into their websites.

The Benefits of E-Payments

Electronic payments are an increasingly popular alternative to traditional checks and paper invoices. In fact, according to a recent survey, more than two-thirds of small businesses prefer to pay their vendors electronically.

Electronic payments and e-payments systems are highly convenient to both businesses and their suppliers. In the context of accounts payable, e-payments are a win-win in that they reduce costs, improve relationships, increase visibility and provide enhanced security when compared to traditional checks. Here’s how:

Lowered Processing Costs: The more payments a business can process electronically, the less they spend on paper and postage, along with the time required to print, sign, stuff, and mail checks. 

Increased Payment Security: Electronic payments are inherently more secure than paper checks, and specific methods like virtual cards offer even greater protection against fraud. On top of that, best-in-class e-payment systems include additional features and controls to help secure the payments process.

Enhanced Visibility: E-payment systems provide your business with greater visibility into payment statuses, financial metrics.

Why Your Business Needs to Consider E-Payments

The days of writing out checks and mailing them are long gone. The same can be said for paying bills by check. The rise of electronic payments has made it easier than ever to pay bills electronically and save time, money and effort.

Every year, businesses in North America make 27 trillion dollars in B2B payments but spend an estimated  510 billion in manual accounts payable costs. A key reason for these exorbitant costs is that 60% or more of payments are still made by paper checks. While most financial leaders understand the need to shift to electronic payment systems, many do not know where or how to get started.

For companies running upwards of 500 check payments per month, just the processing of these payments would consume an entire working day. After migrating to ,or other e payment system, most saw that processing time cut down to less than two hours.

Integrating electronic payment solutions into their accounts payable processes is just one way that businesses are able to transition from the hassle and risk of paper checks.