As a CFO or Controller, you maintain a close relationship with your banker or bankers. Contrary to popular belief, working with your bank for issuing payments is not always the best decision. No matter your reasoning, remember that banking is a results-oriented, sales-driven operation. Each financial institution is focused on driving organic growth by building on the ongoing relationships with business customers like you.
10 secrets your banker won't tell you when talking about their payment automation services:
1. They are primarily interested in your credit business and account balances.
2. Payments must be processed exclusively through their systems.
3. You must issue ePayments solely on accounts held with them.
4. Only high-dollar-spend vendors will be targeted to participate in your ePayments program.
5. Banks will charge more (and make more) for check processing than for ACH payments.
6. Dollar-spend thresholds will be set to calculate rebates for Commercial Card & Virtual Card transactions.
7. Rebates are typically paid once per year.
8. Banks do not offer ERP integration.
9. You must meet their file specifications before setting up Payment Automation or ePayments.
10. Government regulations restrict banks from aggressively serving middle market customers.
As you consider your next steps, we strongly recommend that you consider a means of payment automation that provides clients with solutions that enable diversified banking relationships that work for your company. Selecting a payment tool that is "bank neutral" helps keep you in control of your company's payment process while reducing the time and expense, allows you to diversify - connecting to the bank or banks of your choosing, and greatly reduces the impact on your already time-strapped A/P and IT personnel.
The best payment automation systems will integrate into any ERP, transmit financial information seamlessly to any financial institution or institutions and will offer virtual payment options that pay cash back monthly to help you generate positive cash flow.