Power of PAYBOX®
The Value of Electronic Payments
Electronic payments are revolutionizing corporate financial supply chains. As companies usher in a new era of financial supply chain management, Accounts Payable (AP) and Accounts Receivable (AR) departments are undergoing a massive transformation. A fundamental component of this transformation is a shift towards the ability to accept and process electronic payments.
The Importance of Electronic Payments in a Business Setting
It’s surprising to discover that although most large organizations and Global 3000 companies have the ability to process electronic payments, paper-based invoicing processes still prevail in the enterprise financial space. Industry research suggests that two-thirds of all invoices from vendors are paper-based.
Although paper-based invoicing is a reality for most corporations, it causes enormous operational inefficiencies, process bottlenecks and organizational issues. Switching to electronic payments can yield significant benefits for organizations.
The many benefits of electronic payments include increased productivity and personnel cost reductions thanks to the elimination of labor-intensive business process, such as manual data entry and keying, and invoice workflow and dispute management automation.
Electronic payments have enhanced security measures to protect customer data and payment fraud, and they cannot become lost or damaged. Direct Insite’s trusted electronic payments solution, the Invoices On-Line (IOL) portal, never stores sensitive payment data related to a merchant’s services within the merchant’s firewall.
How to Improve Electronic Payments Processes
There are several ways to maximize the impact of an organization’s electronic payments processes, such as:
- Implement document scan and electronic invoice capture: Document scan and invoice capture is the first step to AP transformation, and augments companies’ electronic payments capabilities by further automating and documenting paper invoices.
- Stay up-to-date with reporting and auditing information: A robust electronic payments solution will offer advanced reporting, tracking and auditing information to management and other authorized personnel. It’s important to stay on top of new metrics and data, as well as notable operational and spend trends happening over time to make actionable recommendations based on hard business data and achieve more accurate cash flow planning.
- Communicate benefits and user-facing features to customers: Strong electronic payments systems come equipped with several user-facing features. Be sure to communicate value-add features to customers (e.g. self-service payment profile management and secure payment notifications) to continue to improve the customer experience.
- Set up customized business rules: For large organizations with sophisticated financial business rules and compliance regulations, setting up customized business rules on your electronic payments solution should be a priority. Electronic payments will be automatically processed if they meet your criteria and any electronic payments that do not meet the rules or have an error will be immediately brought to your attention through instant notifications.
Electronic payments are an important step in AP, AR and Payment process transformation, helping organizations save money through automation and gain a more accurate picture of corporate spending habits and cash flow.
Direct Insite IOL Payments solution helps companies improve customer relationships, accelerate credit and collections and immediately improve Day Sales Outstanding (DSO). To learn more about Direct Insite’s unique electronic payments solutions, which are used by Fortune 1000 and their suppliers, call us at 954-510-3750.