The Effortless Transition from Manual to Electronic Payments
The shift from paper checks to electronic payment methods represents one of the most impactful changes an accounts payable department can make. Yet many organizations struggle with the transition, facing resistance from internal stakeholders and external suppliers alike. This article explores practical strategies for making the move to electronic payments as smooth as possible.
Why Organizations Delay
Despite well-documented cost savings, the transition to electronic payments faces several common obstacles. Supplier enrollment is often the largest barrier — many vendors, particularly smaller ones, may be reluctant to share banking information or change established payment processes. Internal resistance from staff comfortable with existing workflows adds another layer of complexity.
A Phased Approach
- Phase 1 — Virtual cards: Start with suppliers who already accept card payments. Virtual cards offer immediate rebate benefits and require minimal supplier setup.
- Phase 2 — ACH: Transition high-volume suppliers to ACH payments, reducing per-transaction costs while maintaining predictable payment timing.
- Phase 3 — Supplier portal: Implement a self-service portal where suppliers can view payment status, update banking details, and choose their preferred payment method.
Measuring Success
Track electronic payment adoption as a percentage of total payments, not just total volume. Cost-per-payment metrics should decline steadily as electronic methods replace checks. Early payment discount capture rates typically improve as automated payment scheduling becomes the default.
For more on payment automation trends, see our 2017 Electronic Payments Report.