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Electronic payment apps make it easy to ensure that your suppliers are paid with speed and efficiency by bringing the power of technological automation to the world of accounts payable. A truly effective bill payment app will support and facilitate secure B2B bill payments and feature a network of thousands of suppliers. A large network shows how trustworthy the payments app is and makes it even simpler to use because your suppliers are already familiar with the new system. The B2C industry is, unfortunately, far ahead in terms of embracing electronic payments. We, as consumers, are all used to completely digital transactions.
However, many middle-market businesses continue to rely on paper processes that can create inefficiencies in their teams and prevent them from being able to focus on more strategic initiatives. An electronic payment system can eliminate many of these inefficiencies. There are many different electronic payment companies out there, but not all are created equal. It’s important to find a company with the experience you can trust. Ensuring that the company you choose has cloud access is also important. If you have remote access, you can verify the status of bills even when you’re out of the office. Overall, an electronic payment system can provide a huge number of benefits that can streamline your bill payment processes and free up resources within your accounts payable team.
There are a significant number of electronic payment system examples that you can find online. The general electronic payment procedure is pretty straightforward. Basically, invoices are received from vendors and suppliers and then converted into a digital format. The digital invoice is then organized and coded by the system, which next sends that invoice to the proper employees for approval. Once the invoice has been correctly authorized, the system automatically issues payment to the supplier. Thus, it is clear how automation can both reduce the costs and scalability issues associated with using paper but also increase the speed at which your accounts payable team can pay invoices and achieve your objectives. There are many different types of payment systems. Some are designed specifically for the B2C space, while others are focused more on the B2B space. It is important that you choose a payment system that is designed with your industry in mind. AvidPay is an electronic payment system example from AvidXchange. It’s our bill payment solution that offers you more than just automation. With our system, you get to maintain flexibility and control. AvidPay is designed to work with completely custom workflows so that your invoices continue to be approved by the right people.
There are three advantages of electronic payment systems. The first is that they make it easier to scale. As a middle-market business, you know that a company’s growth is not always predictable or smooth. When that significant growth occurs, your accounts payable team can be completely overwhelmed by the new paperwork and invoices that start coming in. This can then lead to mistakes occurring, as well as delays in the payment process, which can lead to deterioration of your supplier relationships. This is one of the advantages of payment systems that are electronic. As your company grows, you’ll never be held back by paperwork because each invoice can be easily and quickly scanned into a system where it will then be automatically processed and, after the correct approvals are obtained, instantly paid.
The second advantage is that electronic payment systems reduce fraud. E-payments are much less prone to security breaches than paper payments. The third benefit is that the best electronic payment systems provide cloud access so that you can work remotely and still have complete visibility into your bill payment process. Now, you may well be wondering, with all those advantages, what are the disadvantages of electronic payment systems? There really are very few. Theoretically, bill payments could be too fast for an organization that’s been used to the more deliberate pace of paper payments. In that case, it may be better to gradually begin deploying an electronic payment system so that each member of the team becomes fully accustomed to the way it all works.
As with anything, there are advantages and disadvantages of electronic payment systems. It’s important to understand both before making a decision as to whether or not an electronic payment system is a good choice for you. One of the great features of electronic payment systems is that you can slash about 60 percent of your payment processing costs, according to research. Another benefit is the hours of employee time that used to be focused on processing payments that can now be directed to more strategic efforts, providing more value to the business overall. Implementing an electronic payment procedure really is a no-brainer when you look at all the benefits you get from the new process. Though there may be disadvantages of using an electronic payment system, the many features and benefits far outweigh them. The classification and characteristics of electronic payment systems can vary depending on what industry they are geared toward, or even what specific technology the system is using. AvidPay from AvidXchange is an electronic payment solution from a company with experience you can trust. Our system processes over $145 billion in payments and around 58 million transactions annually.
We’ve highlighted many of the advantages of online payment systems, but it’s important to always weigh the pros and cons of any decision, which is why you should carefully consider electronic payment system advantages and disadvantages. On the one hand, they come with greater speed and efficiency; on the other hand, they can be perceived as a new and different system to many professionals who have come to trust in the stability and normalcy of traditional, paper-based payments. It can be difficult to convince decision-makers to move away from tradition and embrace the power and advantages of innovation. You may still be wondering, what are the disadvantages of electronic payment system? The answer is simple: there really are very few. Looking online may reveal some, but you should ensure that they are, in fact, genuine disadvantages. There are many myths in the accounts payable world, and you should check your sources before making a decision. For instance, you might find a supposed disadvantage being that electronic payments are too vulnerable to security breaches. However, that would be incorrect, since paper-based payments are actually more vulnerable than e-payments.
Now, let’s discuss the importance of electronic payment system. An electronic payment system can bring your accounts payable team all kinds of benefits, as we’ve described. Furthermore, a great electronic payment system will integrate well with your current accounting system, making the decision to transition easier. AvidXchange has already built over 220 integrations between our AP automation solutions and the accounting software systems that you and your colleagues are already using. This feature should be one of the results when you search Google for “requirements of electronic payment system”. This means that we’ve most likely already built an integration with the accounting system you’re currently using. The point is that switching to an electronic payment system is important because it is an easy way to bring in all kinds of benefits and reduce your overall costs. Electronic payment systems are also important because they allow you to use a more secure system of payment.
Our goal today has been to answer the question, what is electronic payment system? Electronic payment systems allow you to pay bills to your vendors instantly through the power of automation instead of relying on slow, challenging paper-based methods. We’ve also briefly discussed some of the different types of electronic payment systems. B2C e-payments are now normal for the average consumer, but B2B payments are still being paid through paper far too often. A general electronic payment system definition is that it is a system that allows you to pay your bills 100-percent electronically. A solid e-payment system like AvidPay from AvidXchange provides complete visibility into the entire bill payment process and reduces the processing costs and delays caused by paper-based processes. When combined with our other effective solutions, you can bring the power of automation to your AP team, eliminating the work that’s holding you back so that you can get to the work that matters most to your organization.