The 3 essential elements of a successfull electronic payment strategy:
1) The transition must be gradual
Moving your vendors from checks to ePayments is a gradual process that will take time. For any ePayment strategy to succeed, it is very important to realize that the transition from paper-based payments to electronic payments is a gradual process that will take place over time. Companies must find solutions that can support both types of payments and provide for a single payment platform that can continue to support check printing needs as well as the option to gradually move vendors to ePayments.
2) Vendor outreach must be automated
The process of promoting ePayments must take place as part of the disbursement process and without requiring additional steps or additional resources. It is imperative for any ePayment strategy to automate the process of promoting and administering the tasks required to transition vendors to ePayments. Automated emails and fax options must be utilized and all communications must be incorporated into the standard payment process.
3) Vendor Registration must be automated
The process of getting your vendors to sign up for ePayments must be secured and automated. Once your vendors are sold on ePayment and they are ready to sign up, now comes the next challenge: the registration process.
With the traditional registration process.
a. direct deposit agreements are faxed to vendors for them to complete, sign and fax back for approval.
b. Once the information is reviewed by the accounting department and approved, then it must be entered into the accounting system, vendor profile must be updated to reflect their preference to receive ePayment,
c. and a conformation letter must be sent to the vendor stating that they are now signed up for ePayment.
The process is very cumbersome and it requires a lot of manual intervention that most accounting department cannot afford. To make the transition smooth and efficient the sign-up process must be automated.
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