The Advantages of an Electronic Payment System

Electronic Payment System Basics

An electronic payment system enables business to deliver, receive and process electronic invoice submissions for Accounts Payable (AP) and Accounts Receivable (AR) departments. Although most AP departments have the capabilities to process electronic payments, industry reports suggest two-thirds of invoices still arrive from vendors on paper.
Paper-based payment processes present significant challenges to large organizations, stalling efficient workflows in AP and AR departments due to a heavy reliance on labor-intensive processes and data entry. Businesses that go paperless by implementing an electronic payment system realize enormous process efficiencies and cost-savings benefits. 

Benefits of Utilizing an Electronic Payment System

Many large global organizations are reaping the benefits from employing an electronic payment system, which include:

  • Day Sales Outstanding (DSO) Improvements: For suppliers, an electronic payment system can immediately improve DSO numbers by allowing them to electronically receive and process payments from commercial customers. 
  • Processing Cost Reduction: A feature-rich electronic payment system lowers associate process time by automatically initiating and processing payments.  
  • Minimize Overdue Payments: A best-in-class electronic payment system accelerates credit and collections by giving customers, collections groups and internal customer service departments greater visibility into payment status.      
  • Simplify Dispute Management: With an electronic payment system, companies enjoy improved data accuracy and automated disbursement, receipt and payment processing to streamline vendor dispute management.  
  • Increased Compliance: An electronic payment system makes it easier to track and monitor data to ensure adherence to complex compliance regulations and all business rules.
  • Enhanced Security: An electronic payment system is highly secure, safeguarding cardholder data and preventing payment fraud better than paper-based payments can achieve. 
  • Improved Workflow Efficiencies: Increased automation is a key feature of a robust electronic payment system, enabling less reliance on time-consuming and costly manual business processes. 
  • Greater Visibility into Financial Supply Chain: With access to reports and comprehensive corporate financial history, an electronic payment system gives management and other authorized users easy access to snapshots and detailed reports to improve decision-making and process efficiency. 

Key Differentiators in Direct Insite’s Electronic Payment System

Direct Insite’s PAYBOX® platform helps Fortune 1000 companies and their suppliers enhance customer relationships, accelerate credit and collections and improve DSO. By taking an invoice-centric approach to electronic payment system solutions, Direct Insite’s solution has an unmatched breadth of capabilities and integrated e-invoicing functionality in a PCI compliant environment.

Key differentiators of Direct Insite’s electronic payment system and PAYBOX® solution include:

  • Support both AP and AR departments
  • Secure disbursement, receipt and payment processing via credit card or the Automated Clearing House Network
  • Automatic scheduling and payment of one or more invoices
  • Meet PCI requirements
  • Never stores sensitive payment data regarding a merchant’s services within its own firewalls
  • Safeguard cardholder data and prevent payment fraud
  • Ability to present electronic payment system invoices to customers and automate workflows and dispute management
  • Automatic synchronization of payment remittance information with a company’s enterprise resource planning (ERP) system

Fortune 1000 companies and large enterprises around the globe turn to Direct Insite’s comprehensive AP, AP and Payment process solutions to transform corporate financial supply chains. For more information about our electronic payment system solutions, call us at 954-510-3750.

Electronic Payments