Payment Strategy
Being strategic about which payment methods to use can really pay off. More broadly, your organization should consider the entire purchase-to-pay (P2P) process and determine the best (i.e., least expensive and most efficient) option for various types of purchases; for example:
Recurring bills
Frequent and infrequent purchases/suppliers
Low-value and high-dollar purchases
Contract and off-contract purchases
Purchases initiated through an eProcurement system
Because paper checks are costly, strive to reduce check usage within your organization and increase electronic payments. Implement a mix that best supports internal goals and then turn your strategy into a policy.
Business-to-Business (B2B) Payments
A new addition to the list below is instant/real-time payments (RTPs), which are becoming more popular.
ACH payments—credit and debit—include “regular” and Same Day ACH.
The primary types of commercial cards include:
Purchasing cards (p-cards)
Corporate travel cards
Fleet cards
Electronic payables/electronic accounts payable (EAP) solutions, including virtual cards
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