Is your e-payments strategy keeping pace with your business?

  • When it comes to payables solutions, one size does not fit all.

Each type of e-payment plays a specific role in reducing expenses and directing capital, so it's important to understand what the differences are and when to use them.

1. Automated Clearing House (ACH) payments

Advantages: ACH payments are easy to manage and will soon offer same-day processing in addition to the existing next-day processing.

Best for:  Automated and recurring payments like direct payroll deposits, taxes, bill payments, vendor payments, and subscriptions.

2. Wire transfers

Advantages: Wire transfers are the fastest payment solution available  often near real-time within the U.S. (deadlines apply). Wires transfer also can't be canceled by the sender without explicit permission from the receiver (a big difference from ACH).

Best for: Large payments that require greater speed and a guarantee of funds, international payments.

3. Commercial cards

3.1 Travel and entertainment cards (T&E card)

Advantages: T&E cards provide detailed transaction data that simplifies reconciliation and expense management, and can be used to negotiate with suppliers for discounts on airfares, hotels, and car rentals.

Best for: Gaining more control and insight over travel and entertainment spend.

3.2 Purchasing cards (p-card)

Advantages: P-cards can reduce administration costs, eliminate the need for paper invoices and purchase orders, and increase working capital.

Best for: Purchasing goods and services, repetitive non-direct spending, and buying inventory.

3.3 Virtual card numbers (VCN)

Advantages: VCNs can optimize cash flow and working capital; provide higher levels of control, efficiency and security while avoiding the risks associated with outdated payment methods.

Best for: Post-invoice accounts payable payments, online payments and real time payments.

Recalibrating your e-payments program

With a deep expertise in your industry, SVB can help you customize and implement an e-payments program to fit the needs of your organization and manage your supply chain using a variety of solutions  from payment methods like ACH, wire transfers, and commercial cards, to payment channels including online bill pay, electronic accounts payable, and direct file transmission.

Please contact your SVB Global Treasury and Payments Advisor to learn more and get started. 


About the Author

Jason Carone is a Senior Product Manager for Silicon Valley Bank focused on ACH and Emerging Payments. He has also spent time with SVB as a Director of Business Planning and Support, as well as managing their Payment and Cash Management Operations. He has over 20 years of experience in Banking, Product Management, Sales Engineering, Operations, Consulting, and Internet Banking for various firms including Zions Bancorporation, P&H Solutions, Financial Fusion, and US Bank.

Jason received his undergraduate degree in Economics from the University of Utah. He holds the Accredited ACH Professional and Certified Treasury Manager certifications, as well as serving on a variety of industry forums, including NACHA’s Product Innovation working group, the Federal Reserve Customer Advisory Group, and NACHA Mobile Payments Working Group. In addition, he serves as the president of the Wasatch Luge Club. He resides in Park City, Utah with his wife and 2 children.