One of the most common add-on solutions that our customers use, is Electronic Bill Payment. In this article, I am going to cover what are some reasons for choosing Electronic Bill payment vs. cheques, and two Electronic Bill Payment options.
What are some of the reasons you would consider for choosing Electronic Bill Payment?
- Cheaper than cheques, a cheque is approximately 82 cents, while a direct deposit works out to as low as 13 cents to process
- Eliminate your risk of Cheque fraud
- Green way to go, uses less paper (no envelopes or cheque paper stock required)
- Allows for remote authorization of payments
Two Electronic Bill Payment options:
We recommend either an EFT solution or Telpay – an electronic payment company. EFT is an acronym for Electronic Funds Transfer. The basic difference between the two options, is that with EFT, the application creates a payment file, which you upload to your bank, and the bank distributes the funds. You must have all your vendors banking information for this to work. One then informs their vendors that a payment has been made, and for which invoices, by emailing a remittance notice.
With Telpay, a similar process exists, except that Telpay allocates the payments to the applicable vendors. If Telpay doesn’t have the banking information for a particular vendor to do the direct deposit, they will send them a cheque with a form, requesting the vendors banking information for future. This step saves you from having to track and maintain your vendor’s banking info.
Here is a document from Telpay that goes into further detail with the differences.
You are now familiar with reasons to consider choosing an Electronic Payment solution, and the differences between the two options we recommend.
Contact Peak Business Solutions for further information and to see which solution is best for you.