Tell about modern time electronic payment systems ?

With e-Payments, funds are sent directly to your vendor’s bank account in a matter of days—if not immediately.

There’s less worry about payments being lost in the mail or additional fees. Most EFTs cost less than a dollar per transaction.

An electronic payment system is a third-party SaaS or application used to electronically manage payments. Most electronic payment systems include a few key components:

Online bill pay is a bank system used to receive bills and make payments. Online bill pay users can use this same account to manage online banking and pay anyone in the U.S. If your vendor is not registered with your bill pay provider, a paper check is automatically mailed, leaving your vendor to wait and worry on the payment delivery.

If your vendor is registered and accepts e-Payments, the online bill pay system will automatically send the type of e-Payment the vendor prefers.

Conversely, electronic payment systems handle any form of EFT payment whether or not your vendor is registered with the bill pay provider.

With electronic payment systems, as long as payments come from a verified bank account, the payment will be processed.

When pairing electronic payment systems with AP automation solutions, vendor information is verified at the beginning to ensure payments are sent to the account the vendor confirms.

While both options take the heavy lifting off your finance department, find the better choice for your business by evaluating the advantages of each system.

Generally, online bank bill pay systems have worked well with individual consumers.

For larger companies or enterprise-level organizations, bill pay may not suffice given the number of vendors that are used and must be registered with the bank’s bill pay system to receive e-Payments.

With AvidXchange, the payment process improves efficiency and accuracy with streamlined accounts payable workflows.