ePayables, also known as virtual payments, is a growing trend for business-to-business companies. Imagine turning your accounts payable system into an efficient, streamlined operation that establishes a controlled payment cash flow to your suppliers, all while reducing direct costs and improving your cash management. It is possible!
ePayables by definition is a virtual credit card payment. Similar to traditional physical credit cards these virtual cards have a 16-digit card number, an expiration date and a card verification code (CVC). The key here is this payment type is ‘virtual’ or ‘electronic’ or known as a no-card-present type of payment.
Typically, a virtual card is designed to be a single-use account (SUA) and is assigned by the buyer to a supplier as an approved payment for a specific dollar amount. For increased security and to minimize fraud, these SUA’s are issued for a specific supplier, for a specific dollar amount, and once the payment is made the unique card number is then terminated and are not reused.
Currently, virtual cards are the largest electronic payment growth segment in the B2B commercial card space. It is also becoming the preferred payment option with suppliers. ePayables acceptance is growing at a steady rate of more than 9% and is expected to reach over $350 billion by year-end 2018. The B2B overall payments space is estimated to be $450 trillion, which is still dominated by paper checks.
The ePayables solutions that are possible for businesses are possible for health care systems and hospitals. As a health care system that is always looking for new ways to improve efficiency, reduce costs, and streamline processes, ePayables will allow your health care system to improve its cash management and reduce unnecessary AP costs.
To learn more about HealthSpire’s ePayables solutions, visit our ePayables solution page. Have questions? We may have the answer for it on our FAQ page. Ready to get started on implementing an ePayables solution in your health care system? Contact us here.