Over 50% of firms are moving away from paper checks
For A/P, when it comes to making the jump to electronic payments, the question has shifted from “Why should we?” to “Why shouldn’t we?”
According to Global Payments: Maximizing Cash Flow with Electronic Payments and Process Automation — a recent report by the Aberdeen Group — Accounts Payable can reduce the cost of making payments up to 45% by moving away from paper.
Specifically, the report highlighted the average cost associated with the following payment methods:
- producing a paper check ($7.15)
- an Automated Clearing House (ACH) payment ($4.72), and
- a corporate credit card payment ($3.96).
When it comes to moving to e-payments, one of the biggest challenges for A/P departments is getting their vendors to buy-in. But an increasing number are firms are putting pressure on hesistant vendors.
In fact, 61% of the companies in the Aberdeen report are more likely to require key vendors to accept electronic payments as a condition of doing business.
Another key finding from the Aberdeen Group: The use of paper checks declined at over half of the U.S. companies in the report.
Readers, has your A/P department made the switch to electronic payments? Let us know how it went in the Comments Section.
- Share on
Free Training & Resources
Further Reading
Ever-growing postage rates are driving companies to digitize as much as possible. A record-high rate hike set for July 14 is going to impac...
The wave of tech fraudsters landing in the slammer rolls on. Elizabeth Holmes of Theranos infamy, crypto hustler Sam Bankman-Fried … ...
How many times has your Finance team seen the word “processing” on their laptop screens this week? Instant payments, both via T...
Federal shutdown headlines dominate business coverage, but finance teams are focused on the practical fallout – revising project schedule...
The Federal Reserve lowered interest rates for the first time in four years. Fed members told us back in the summer a rate cut was a near ...
Increasingly clever cybercriminals are out to take your company’s money. They’d even stoop so low as hacking you with a purchase order ...
