Four Differentiators For Choosing An Electronics Accounts Payable Provider

A transition in the way companies are making payments is taking shape, and it’s helping today’s businesses modernize their B2B corporate payments.

But, what’s behind the massive push toward electronic payments in the B2B world?

The answer—according to David Disque, VP of operations at Florida-based CSI Enterprises—is the need for companies to embrace alternatives to traditional automated clearing house (ACH), bank wires and checks.

“There’s been a significant push in the last four or five years to integrate the card payment mechanism within the back-office accounting and software systems as an electronic alternative for a paper check,” Disque told PYMNTS.com.

Disque cited research that suggested 50 percent of all large-market, Fortune 500 companies have moved away from paper-based corporate B2B payments. These top U.S. businesses, he said, have either implemented an electronic card-based solution or are in the process of doing so.

CSI expanded its product offerings to include corporate purchasing and electronic payable solutions in 2006. Since then, the company has worked to perfect its technology for integrating with accounts payable to automate backend payments processes. CSI’s Virtual MasterCard (vCard) for Accounts Payable, for example, allows companies to embrace this transition. Disque said the vCard has a slick interface, easy integration and lets users index the transaction based on check reference numbers.

Despite the benefits of electronic payments, though, there has been slower adoption among small- and mid-sized companies. Many of these companies, Disque suggested, are holding on to their established B2B payments process in fear of what a change could bring.

These companies are concerned that such a transition will upset their internal process, risk their vendor acceptance or drain time and resources. Disque agreed with these concerns, but suggested the market is already adapting solutions that meet these needs.

“With five years of experience in this space, we’ve been able to package this up where it’s a commitment of three to four calls that last about 30 minutes and you’re processing a good amount of your payments on electronic cards,” Disque said.

Disque said that there are certain providers that can help companies avoid these hardships. He stated that by looking at four key differentiators, CFOs can confidently make the switch without detrimental interruptions.

Disque advised CFOs to first look for a provider that has great end-to-end technology built for enabling electronic payments. Next, he said they should evaluate whether this provider can offer a single-source platform. Even the best providers, he cautioned, may only be able to electronify 40 to 80 percent of their payments. Disque stressed that in light of this reality, businesses decision makers needed to search for “holistic solutions” that could also process ACH, checks and plastics.

What are Disque’s final two differentiators? For the answer to this question, listen to the full podcast here.

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