The Biggest Barrier to Entry for Electronic B2B Payments in the US
April 4, 2018
Accounting teams across North America rely too heavily on paper checks as their primary form of payment to vendors. Not only does check processing involve plenty of manual work, but at high volumes check runs can be a large drain on a company’s resources and time. Electronic payments are a much-needed alternative to checks, but in the United States in particular, companies have been reluctant to get on board.
Up until now, the biggest barrier to entry for electronic payments in the U.S., according to a CGI report, was actually quite practical. For business-to-business (B2B) transactions, paper checks are typically issued with remittance details attached, and these details are a required component for many accounting and auditing processes.
Manual processes, and the legacy accounting systems that have sprung up to facilitate these processes, have all been built around paper checks and the data they contain. However, payment types like ACH (Automated Clearing House), virtual credit cards, and EFT (in Canada) have come a long way over the last few years. Now all the remittance data that currently travels through fax machines and in emails can be included with electronic payments.
Similarly, automation technology offers an alternative to the traditional payment process by bringing everything into the cloud and expediting key parts of the process. Not only does automation expedite approval process, by making the entire interaction digital, but it also cuts down on the time spent shuffling papers.
Right now, businesses in the U.S. are at a tipping point for B2B payments, where the benefits of adopting electronic payments and automating the payments process far outweighs any potential advantage of sticking to checks. In a new infographic, Manual Payments vs. BeanPay, we explore exactly how the manual payment process stacks up against BeanPay, the cloud payment solution built by Beanworks. With BeanPay, paying your invoices has never been easier. Download the infographic now to see how you can start saving time and money paying your vendors.
The Game-Changing Cross-Border Payments Every AP Team Needs
The B2B cross-border payments market is predicted to reach USD $35 trillion by 2022. The partnership between Beanworks AP automation and global payments provider, Cambridge can help companies move in that direction.
What is a Virtual Credit Card? 3 Things You Need to Know
One research study found 9,708 instances of compromised credit card data in only the first quarter of 2019. Right now, one of the biggest financial risks is credit card fraud.
Getting Ready for the Digital Payments Phase
Payments trends from the past decade indicate that businesses are turning away from checks. According to the Association for Financial Professionals, 81% of B2B organizations used checks in 2004. In 2019, this was down to an all-time low of 42%.
Straight To Your Inbox
Stay up-to-date on top accounting and finance trends
Sign up for our newsletter and receive our latest resources, news and insights.
Learn More About Beanworks
Discover how AP automation can free your accounting team from manual data entry, delays, and paper-based processes.