The Benefit of EPayables on Business Operations

The use of ePayables and virtual cards for B2B payments is growing, and they are quickly becoming an alternative to checks and ACH in the accounts payable payments process. A 2021 study by Juniper Research predicts Certified Bookkeeper that the global value of virtual card transactions, including ePayables, will grow from $1.9 trillion in 2021 to $6.8 trillion in 2026. And a 2022 report by PYMNTS.com indicates that 55% of CFOs now use ePayables more frequently, and 40% have reduced their paper check usage. EPayables are essentially virtual cards that act as electronic payment alternatives to paper checks, where each vendor is assigned a card. A company’s AP department will send an electronic file to their bank once an invoice has been approved, notifying the bank how much money should be added to a vendor’s card. Third-party platforms are often white-labeled by financial institutions offering other essential treasury services, such as ACH, wire transfers, and check processing.

Check Out the Future: B2B Digital Payments

Maximize efficiency and control in your payment processes with our robust Treasury Management payables solutions. A steep learning curve may also pose an issue for those unfamiliar with electronic payment processing on both the buyer and the vendor side of the equation. The introduction of credit cards allowed businesses to pay for items without the use of either. Before electronic payments, most things were paid for with cash or a check payment.

Configurable approvals

Once you’re set up, you’ll have access to virtual cards that can be connected to vendors, protecting you against fraud attempts in addition to making payment processing a breeze. With the invoice approved, the AP team submits an electronic request to the bank to fund the vendor’s unique virtual card with $1,000. Now that the funds are on the virtual card in the exact amount owed on the invoice, the vendor can process the payment.

What About Fees?

EPayables cards are usually provided by credit card providers such as Visa, Mastercard, or financial institutions like Bank of America. Fortunately, ePayables can transform how your business handles accounts payable, replacing outdated processes like check payments and ACH with faster, more efficient workflows. Electronic payables rely on virtual card platforms, secure vendor portals, AI-based invoice matching, and API integrations with ERPs. Machine learning aids fraud detection and predictive analytics, while cloud platforms enhance scalability, enabling smarter, faster, and more secure financial operations. While the transition may involve some upfront effort, like vendor onboarding and system integration, the long-term benefits make it worthwhile. With better cash flow control, enhanced security, and even potential rebate earnings, ePayables turns accounts payable from a back-office function into a strategic advantage.

The ability to instantly execute payment means that an organization can hold on to cash for a longer period, still paying on time, and contribution margin still reap discounts. This allows the company to collect more return on those funds as working capital. To gain deeper insights into how various players in the space compare, Javelin Strategy & Research released its 2024 Commercial ePayables Scorecard.

• To illustrate the process of an ePayables payment, let’s walk through an example of an ePayables workflow.
• Faster reconciliation and better visibility also help suppliers plan their cash flow more confidently.
• Fortunately, ePayables can transform how your business handles accounts payable, replacing outdated processes like check payments and ACH with faster, more efficient workflows.
• EAP spending is expected to rise to $127 billion by 2022, a 42% increase from 2017.

ePayables and Your Payment Strategy

• Control your electronic payment timing to improve finances and reduce the need for checks.
• FHB ePayablesSM is an electronic payment solution that applies your Corporate Card program benefits to your Accounts Payable.
• The entire transaction process is more secure by nature, decreasing the chance of fraudulent payments.
• The virtual card is only used for the assigned vendor; no other transactions are run through the virtual card.
• The University of Mary Washington offers an electronic payment option to all vendors and suppliers through Bank of America’s ePayables virtual card solution.
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Choosing the right payment method is critical for optimizing your AP operations. While all three—ePayables, ACH, and checks—can be used to pay vendors, each method comes with distinct capabilities, risks, and strategic advantages. Digital payments ensure vendors receive funds quickly and accurately, reducing late payments and dispute risk. Faster reconciliation and better epayables visibility also help suppliers plan their cash flow more confidently.