Even in the new digital world, paper checks remain a stalwart method for Accounts Payable teams to pay vendors. This is not surprising since it has been the go-to method for both AP payments and for vendors to receive payment for decades.
Despite this longevity, a Payments.com survey shows that paper checks are the 7th favorite method of paying vendors. In fact, only 63.5 % of respondents said that they are satisfied with paper check payments, but about 81% continue to use them as a primary payment method.
The only method that elicited less satisfaction than checks was paying through cryptocurrency (48.8%).
Same-day ACH was the most satisfying AP payment method with an 83% satisfaction rate and ACH in general showed about a 77% satisfaction rate.
Despite the clear advantage of ACH, most AP professionals still don't view paper checks as a “far better” or “far worse” method of payment.
If you are planning to invest in a new AP automation solution, these numbers are an important consideration. The right AP solution will not only support both ACH and paper checks, it will help streamline both.
Direct ACH payment straight from your bank account to your vendor's
Automatic creation of the ACH file and delivery to the bank
Secure way for vendors to opt-in (store data in an encrypted way)
Payment approval that works like a “virtual signature” for people that are used to (and comfortable) manually signing checks.
Learn More About ACH Direct Payments »(Link when ACH Direct Post is Published)
Positive Pay is an automated system designed to stop fraudulent check payments from being processed and is offered by the cash management department of most banks.
The Fidesic Accounts Payable solution supports the creation of the Positive Pay File and automates delivery to the bank to reduce the added time and effort that Positive Pay may create, so you can move forward with peace of mind and efficiency. Benefits include:
Significant mitigation of risk
User friendly
Low cost