ePayments – How to Message Suppliers and Vendors for Optimal Adoption

Wed, Jun 20, 2018 @ 05:38 PM

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Overcoming the monumental barrier of collecting supplier bank instructions is typically close to the top of the list of reasons why companies rationalize continuing to issue check payments. 

Who can blame the CFO or CIO for their lack of enthusiasm toward a project that is seems like it could take months or years to manage when their staffs are already stretched thin managing other operational requirements?  Relatively speaking, it seems that their decision to stick with checks just seems smarter.

ePayments - Vendor Management - Virtual Card Payments 

Fortunately, not all supplier / vendor ePayment onboarding projects have to be as tedious as presumed.  Solutions are available that can make this process a minimal effort for your staff.  More details below...

Once the decision to migrate to electronic payments (either ACH payments or virtual card payments) has been made, communicating to your vast vendor database is key to making your electronic payments program successful. 

Before you begin you should understand that you need not contact each vendor in your database.  We recommend that you begin by sorting your vendor database to ensure that you target the vendors that you pay the highest dollar amounts and also the vendors that you pay the most frequently.

We then recommend that you communicate the following key messages to them: 

1)  We are converting a strategic set of vendors from check to electronic payments.

2)  Our goal is to simplify the payment process to you, reduce the use of paper and accelerate your cash flow by paying you electronically.

3)  By accepting electronic payments your company will benefit with:

  • Improved financial controls - no lost or stolen checks
  • Prompt settlement - minimize payment delays, collection costs or disputes 
  • Detailed remittance information - including a list of invoices paid
  • Preferred Vendor Status - receive payment earlier

Communication of these messages is very important regardless of the type of electronic payment you are issuing.  We recommend mailings, emailings, calls and an on-line self enrollment web portal to provide an almost seamless migration process. 

Next, select a payment partner who will provide the platform - like the online enrollment portal - to optimize your success.  

Finally, select a payment partner who will have all remittance for ePayments available online and in a downloadable format to allow your suppliers / vendors the prompt settlement they are seeking.  Having this will dramatically reduce calls into your accounts payable department and improve your relationship with all of your suppliers.  

More on ePayments:

Seeing additional help or information on vendor onboarding for A/P automation?  Just contact us! 

 

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