What Are ePayables? How It Works, Benefits & Fees

Over the past two years, the penalty for missing quarterly or annual income targets has been steep. In 2025, those enterprises who miss their targets and have delayed automation initiatives will face intense external criticism for failing to reduce operational costs and improve productivity. This criticism will roll downhill from executives to department heads and to AP leaders who missed budget goals because they failed to automate critical AP tasks, such as invoice processing, matching, and approval. Beyond efficiencies, any AP, finance, and procurement executives who experience impactful fraud yet failed to implement any new, AI-driven solutions that could have identified and/or mitigated fraud risk will be in hot water.

• The adoption of epayables and epayables automation can transform your AP processes, offering benefits like efficiency, improved security, and cost savings.
• Next was the Electronic Funds Transfer or EFT, which allowed businesses to make online payments to vendors and suppliers.
• With ePayables, suppliers are responsible for the interchange fees imposed by card networks such as Visa, American Express, Mastercard, Discover, Capital One, or Discover to facilitate transactions.
• It begins when the purchasing authority provides a dedicated credit card number to the supplier to keep on file.
• For example, Procurement can help by identifying high-cost procurement channels, such as those using manual and freeform requisitions for the purchase of low-risk commodity products, and by migrating them to a catalog ordering solution.
• Paying every invoice on time, every time is quickly becoming a top priority – driven by necessity – for businesses.

Transaction Matching

• EPayables use virtual cards and are designed to replace outdated payment methods like paper checks.
• When orders are generated online, it’s a very efficient process to eliminate invoicing and have the buyer make payment with a card number while completing the online order.
• The shift towards automation streamlines processes, reduces manual errors, and empowers AP teams to focus on strategic activities.
• Organize, control and streamline your payables with automated buyer-initiated (push) and supplier-initiated (pull) payments.
• This is particularly the case if you add in the cost of labor and the expense of tracking lost or stolen checks.

They offer more speed, traceability, and control over the accounts payable process. EPayables use virtual cards and are designed to replace outdated payment methods like paper checks. Think of these virtual cards as digital credit cards built for business-to-business (B2B) payments. EPayables solutions have gained significant traction in recent years, as organizations seek to optimize their B2B payment processes and enhance financial agility. These solutions encompass a range of electronic payment methods, including virtual cards, ACH transfers, and digital wallets. Virtual Payables is a global, real-time payment method that streamlines your payments using a digital, single-use card — helping you eliminate both the paper trail and the plastic.

Commercial cards go contemporary: ePayables deliver value across the payments ecosystem to corporate clients.

• To optimize supplier enablement, companies should adopt tools and technologies that facilitate seamless communication, reduce onboarding time, and provide flexibile payment options.
• A company should evaluate all of the channels it’s using to determine where cards can improve efficiency in the ordering and payment process.
• As was the case with the Ardent Partners 2022 State of ePayables report, AP’s biggest hurdles are almost a one-for-one match with AP’s strategic priorities.
• Today more than ever, AP departments are implementing ePayables transformation strategies that both their executive leadership and suppliers can get behind.
• By leveraging ePayables, businesses can streamline their payment workflows, improve supplier collaboration, and unlock cost-saving opportunities in their payables process.

The 16-digit number and CVC is generated for the transaction and once the payment is complete, the information is invalidated and cannot be used again. Teams that are used to manual processes may be skeptical about switching to automation. It’s essential to communicate early and clearly about how ePayables enhances, not replaces, their work. With the right training, support, and involvement in the implementation process, internal buy-in is achievable and crucial for long-term success. Discover the next generation of strategies and solutions to streamline, simplify, and transform finance operations. The best way to describe the ePayables process is to compare the system to using a credit card online.

• The biggest difference between the two is that all ACH transfers are considered electronic funds transfers, but all electronic transfers, including digital payments, mobile payments, and wire transfers, are considered EFTs.
• Discover the next generation of strategies and solutions to streamline, simplify, and transform finance operations.
• While the majority of payments are still made by check, these numbers are declining.
• Below are the core benefits of ePayables that make them a strategic investment for AP and treasury leaders.

Financial & Regulatory Disclosures

The landscape of AP and ePayables is undergoing a remarkable transformation as organizations embrace automation, digital solutions, and advanced technologies. The shift towards automation streamlines processes, reduces manual errors, and empowers AP teams to focus on strategic activities. EPayables solutions offer enhanced efficiency, visibility, and cost-saving opportunities, enabling organizations to optimize their payment workflows and strengthen supplier relationships. By leveraging ePayables, businesses can streamline their payment workflows, improve supplier collaboration, and unlock cost-saving opportunities in their payables process. EPayables solutions also offer enhanced visibility into financial transactions, enabling organizations to make data-driven decisions and optimize cash flow management.

Supplier enablement provides smooth payment processes that foster positive relationships between businesses and their suppliers. To optimize supplier enablement, companies must adopt tools and technologies that facilitate seamless communication, reduce onboarding time, and provide flexibility in payment options. Javelin finds one cash flow of the most significant benefits of commercial ePayables is the automation and streamlining of the entire accounts payable process.

Supplier enablement is not always immediate

Streamline your operations, enhance your working capital, and protect your business against fraud. Involve CFOs, controllers, and treasury leaders from the start to define success metrics, allocate resources, and help drive cross-functional cooperation. Their backing not only ensures visibility but also reinforces the importance of the program across departments. Another reason is that the process for accepting ePayables is not ePayables yet standardized.

Choosing the Right Epayables Platform

As a result, solution providers that offer products that automate the ‘Receive’ portion of the AP process often differ in their approach. For years, companies have been migrating from paper to electronic payments, looking to reduce costs, increase cash flow and create efficiencies. One of the most promising procurement channels for https://sublimeconsult.org/how-much-does-a-bookkeeper-cost-guide-to/ introducing card payments is the rapidly growing eCatalog channel.