Businesses are shifting to electronic payments to reduce costs, improve efficiency, and enhance security. However, misconceptions still prevent many companies from making the switch. Don’t let outdated myths hold your business back! Here are five common electronic payment myths—and the truth behind them.
Myth #1: Suppliers Won’t Accept Electronic Payments
Many businesses believe their suppliers prefer checks. In reality, over 80% of businesses want to increase the percentage of electronic payments they receive, according to the Remittance Coalition.
The Truth:
- Suppliers want faster payments. Electronic payments reduce Days Sales Outstanding (DSO), improving cash flow.
- Processing electronic payments costs less than handling paper checks.
- Suppliers gain real-time visibility into their payments, eliminating follow-ups about payment status.
How to Make the Switch:
Automate payments using a centralized payment platform like EZConnect from ACOM Systems. Give suppliers the visibility and flexibility they need while streamlining your AP operations.
Myth #2: Electronic Payments Are Risky
Many executives feel paper checks are safer because they have physical control over them. However, checks are actually the most fraud-prone payment method. According to the Association for Finance Professionals (AFP), checks cause 10 times more fraud losses than ACH and card transactions.
The Truth:
- Electronic payments provide greater security through encryption, authentication, and compliance with PCI DSS (Payment Card Industry Data Security Standard).
- Automated fraud detection flags suspicious transactions before payments are processed.
- Multi-level approvals and Positive Pay prevent unauthorized transactions.
How to Stay Secure:
EZConnect’s payment processing software ensures secure, automated transactions with fraud monitoring, multi-factor authentication, and detailed oversight for every transaction.
Myth #3: Paying Suppliers Electronically Is Expensive
Some businesses hesitate to switch, thinking electronic payments are costly. But the reality is that paper checks are much more expensive.
The Truth:
- Printing, mailing, and processing checks is costly. According to NACHA, check payments cost 30 times more than ACH transactions.
- Electronic payment automation saves time and resources, allowing AP teams to focus on value-added tasks.
- Virtual card payments provide cash-back rebates, turning accounts payable into a profit center.
How to Reduce Costs:
With EZConnect, businesses eliminate manual check handling costs while optimizing AP workflows for cost efficiency and rebate earnings.
Myth #4: Transitioning to Electronic Payments Is Too Difficult
Businesses worry that switching to electronic payments will be complex and time-consuming.
The Truth:
- Leading electronic payment providers handle supplier onboarding for you, ensuring a smooth transition.
- Spend analysis reports identify suppliers who already accept electronic payments.
- Comprehensive supplier support manages vendor updates, banking details, and payment inquiries.
How to Make It Easy:
EZConnect simplifies electronic payments by offering seamless integration with ERP systems, supplier onboarding assistance, and automated payment workflows.
Myth #5: Senior Management Won’t See the Value
Executives may hesitate to prioritize electronic payments, but the financial benefits go far beyond convenience.
The Truth:
- Extending Days Payable Outstanding (DPO) improves cash flow without impacting payment terms.
- Early payment discounts help businesses save an average of 2% per invoice.
- Virtual card rebates generate revenue, making AP a profit-generating department.
How to Get Leadership Buy-In:
Position EZConnect’s payment automation software as a cash flow optimization tool that reduces costs and enhances financial control.
Ditch the Myths. Automate Your Payments with ACOM Systems.
Paper checks are slow, costly, and prone to fraud. ACOM Systems’ EZConnect payment processing software enables secure, automated transactions that save time, reduce costs, and boost efficiency.
Ready to streamline your payments? Contact ACOM Systems today for a free consultation and see how EZConnect can revolutionize your AP processes.
