ePayables: Meaning, Benefits & How Does It Work

EPayables are a digital-only payment method that uses virtual cards, each assigned to a specific vendor. The virtual cards are connected to a bank account and will draw the funds necessary to complete the payment, but with an added layer of security. This program is designed to reduce paper checks and increase efficiency in accounts payable processes. Prepare accurate supplier information, including payment preferences and banking details. Many solution providers offer vendor outreach services to help collect and validate this data securely, which reduces onboarding friction and ensures compliance with data security standards. These could include reducing processing costs, improving payment accuracy, enhancing vendor satisfaction, or eliminating late fees.

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Comprehensive Payables from Bank of America offers flexible solutions that can be designed to meet the unique needs of your business. Understand your AP department’s specific requirements and pain points and choose an epayables solution that aligns with https://alarak.ae/17-best-outsourced-cpa-services-for-startups-2025/ your organization’s business goals. Look for an epayables platform that offers detailed reporting and analytics to provide insights into payment performance and trends. An epayables solution with an intuitive and easy-to-use interface will help simplify the transition for teammates and likely increase user adoption.

Combining Merchant Services payment processing solutions with banking makes your relationship even more rewarding

EPayables, or electronic payables, are digital payment methods that automate the way companies pay their vendors. They offer more speed, traceability, and control over the accounts payable process. Identify the number of payment methods in use, ePayables ACH, wires, checks, or virtual cards and determine whether they are being managed through separate portals or systems.

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• A company’s AP department will send an electronic file to their bank once an invoice has been approved, notifying the bank how much money should be added to a vendor’s card.
• In this blog, we’ll break down what integrated payables are, how they work, and why more businesses are adopting integrated payables solutions to simplify their payments infrastructure.
• This is typically done in a bulk payment to an entity like Bank of America with notes on which cards to fund to the appropriate vendors.
• Contact your Bank of America representative today to learn about how automating your business and consumer payments can help you and your business.
• EPayables reduces expenses tied to paper checks, postage, bank transaction fees, and manual processing tasks.
• The AP team verifies the invoice by checking for accuracy, matching it with purchase orders, and confirming that goods or services were received.

For companies enrolled in rebate-based programs, tracking the revenue generated from card usage can quantify a direct financial return. Evaluating how many payments are processed through ePayables versus legacy methods helps assess the level of transition. A high conversion rate indicates effective adoption and internal alignment. A well-aligned business case shows that ePayables are not just an accounts payable initiative but a strategic investment.

• The expedited receipt of cash also improves Days Sales Outstanding reports.
• He is responsible for setting and steering Corcentric’s strategic vision along with its mission of empowering businesses to do more.
• Learn how to expertly execute global payments for streamlined accounts payable and business efficiency.
• Without an integrated solution, handling these varied payment types individually leads to inefficiencies, higher processing costs, and greater reliance on manual intervention.
• A key liquidity metric, DPO reflects how long a company takes to pay suppliers.
• Enhanced ReportingIn addition to detailed vendor account information, ePayables gives a business enhanced remittance information for more efficient back-end reconciliation.

The most comprehensive offering, scoring highly across all four categories evaluated by Javelin, was provided by Bottomline. Bottomline also leads in the supplier enablement category, with a standout offering for vendor onboarding and ongoing supplier engagement. On the other hand, a phased, thoughtful strategy—grounded in collaboration, data, and communication—can accelerate impact and long-term success. Here are the key best practices finance leaders should follow when introducing ePayables across the organization. After overcoming the initial hurdles of change management and integration, the success of your ePayables program largely depends on how you implement it. A rushed or poorly coordinated rollout can delay adoption and undercut potential ROI.

Secure processing

• They may prefer ACH payments or checks because the customer incurs the costs for those methods.
• However, a phased rollout—starting with a select group of vendors or payment types—can help ease resource strain while demonstrating early value.
• This program allows businesses to make payments electronically, eliminating the need for paper checks and reducing the risk of lost or stolen payments.
• Once the program is live, use data to guide decision-making and refine your strategy.

You must be enrolled in Business Advantage 360, our small business online banking, to have a Merchant Services account from Bank of America. Merchant Services processing funds must be settled into a Bank of America Small Business checking account. And affiliated banks, Members FDIC and wholly owned subsidiaries of Bank of America Corporation. A virtual Payables card uses a unique, one-time 16-digit number for a single payment, eliminating the need for a physical card.

Virtual cards support compliance with data privacy laws, payment standards, and internal financial controls. Real-time visibility into payment status and upcoming liabilities helps finance teams manage forecasts and allocate funds more effectively. When paired with budget tools or analytics dashboards, ePayables become part of broader financial planning.

Schedule quarterly or biannual reviews to assess performance against KPIs, identify bottlenecks, and evaluate supplier feedback. Suppliers who declined during the initial rollout may be more receptive after seeing industry trends or hearing feedback from peers. Segment them by spend and contract status, then prioritize outreach based on impact potential. Offering virtual onboarding sessions or demos can also increase comfort and confidence. While rebates alone may not justify a full switch to ePayables, they offer a compelling value-add that contributes to overall financial performance. Enjoy added security with Virtual Cardsby setting spending limits and creating one-timeor multi-use Cards.

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 What is bookkeeping of the program across departments. Once payment is made, transaction details are automatically recorded in the company’s ERP or AP system.