By converting to ePayments, an organization can expect the following return on their investment (ROI)
1.Reduced Cost of printing checks – Checks cost on average $3.50 per unit. Reducing the number of printed checks reduces your overall cost.
2.Efficiency Gain – There is the cost of man-hours / time associated to the manual process of printing checks, sorting, hand signing high dollar checks, stuffing, and mailing. For instance, in order to issue 1,000 checks per month, a company may realistically average 2 people working 2.5 hours a week or 20 hours a month. Migrating to ePayments can cut that time by 90% allowing your staff to focus on financial analysis, not manual processes.
3.Cash-Back Rebate – You can earn on average greater than 1% cash back of the A/P spend that migrates to the virtual card. Typically this can average approximately 35% of your total A/P spend. The rebate $$$ add up!
We assert that ANY organization can greatly improve their process and their efficiencies by simply changing the way they issue their vendor payments.
Free ROI CALCULATOR - Calculate the ROI of your ePayment Conversion
You can use this ROI sheet to calculate the potential impact of converting check payments to electronic payments. Instructions: Once you request your Free ROI Calculator by clicking on the button below, you will fill in the yellow cells to calculate the impact on your business. NOTE: Blue cells are not editable and are averages based on past ePayment campaigns.
ePayments Conversion SUCCE$$ Story
Recently, the Controller of a company whose average A/P spend is approximately $1,000,000 per month shared with us his Return on Investment metrics for payment automation: specifically for converting checks to electronic payments (ePayments) in Accounts Payable.
1.With virtual card payments, he successfully experienced a 30% vendor adoption of the card application. This not only lowered his cost per transaction to zero (versus the $$$ that was spent on printing, stuffing, mailing checks), but he makes a contribution to the bottom line by earning a monthly cash rebate of $23,000!
2.Then the company on-boarded 40% of their remaining vendors to ACH payments, producing in a $4,000 per month savings.
3.By deciding to convert to a payment automation platform, this controller made a $300,000 plus annual contribution to this organization.
Again, we assert that ANY organization can greatly improve their procure-to-pay efficiency simply by changing the way they issue their vendor payments. It's that easy. No massive capital investment in researching and finding a new procure-to-pay solution is required. Even a new ERP isn't needed. If you want measurable, attainable results in short order, consider converting to ePayments/payment automation platform.
Read More About ePayments:
- Which Should You Use? Purchasing Cards or Virtual Cards?
- How Payments Impact Your Business and Relationships
- Virtual Cards - When You Don’t Use Them, You Miss a New Revenue Stream!
- CFOs & Controllers: 10 Payment Automation Secrets Your Banker Won’t Tell You
- Is Converting to ePayments Worth the Investment?