How Paymode Helped 3 Organizations Reduce Costs, Earn Rebates and Boost Efficiency

Discover how three organizations use the Paymode payment network to elevate efficiency and improve their bottom lines. 

• A manufacturing company overcame its ERP integration and remittance delivery challenges to scale payment automation in response to growth demands
• A hospital finance team got out from under its pile of paper checks—and improved vendor relations
• A healthcare management company with 44 properties and 95 bank accounts reduced complexity and cut costs by more than $75,000.

Table of contents

1: Automating Check Payments, Gaining Financial Returns
2: Increasing Efficiencies, Improving Vendor Satisfaction
3: Enhancing Security, Cutting Costs and Complexity

Just nine percent of companies consider their AP teams fully automated, with check payments proving to be a practice that costs more time and money than necessary in the digital age. Switching to electronic payments uses fewer resources, but some electronic payment approaches present technical challenges and costs of their own.

Paymode is a secure, cloud-based integrated payment network that helps businesses transition to electronic payments quickly and cost-effectively.

More than 550,000 member organizations make and receive electronic payments to each other. Paymode processes $450 billion in payments annually. Paymode integrates easily with existing enterprise resource planning (ERP) systems and bank accounts, and earns companies cash-back rebates on ACH transactions. The biggest hurdle to electronic payment success – vendor adoption – is overcome with an engagement and enrollment model that emphasizes benefits, which removes the burdens of vendor ACH and card enrollment, as well as bank account maintenance.

Automating Check Payments, Gaining Financial Returns

Why Paymode

The company’s paper-check payment process would not support its rapid business growth or corporate “cost down” initiatives. Automating payments could help the organization scale cost-effectively, but only if a solution could meet its requirements. The organization’s raw components vendors needed more robust electronic remittance formats than its Oracle ERP system could support. They needed a solution that integrated with Oracle, provided value to its vendors, and supported both domestic and international electronic payments.

“We chose Paymode because we knew that all of the included services would allow us to automate payments, achieve significant financial returns, and go green with minimal effort on our part.”

Immediate Payment Automation

Within a few months, the organization automated nearly 15,000 of its 50,000 check transactions as a result of its Paymode network matches and the vendor enablement support provided by the Paymode team. This helped optimize its working capital and earn significant cash-back rebates – a result applauded by its procurement and executive teams.

Labor-saving services

“We chose Paymode because we knew that all of the included services would allow us to automate payments, achieve significant financial returns, and go green with minimal effort on our part,” says Jerry Johnson, senior director of finance. “You can’t beat that.”

Increased AP productivity

Because Paymode handled all the maintenance and verification of vendor bank details as well as electronic remittance delivery, the AP team could be more productive and focus on value-added tasks.

Savings and cash back

“Thanks to the high levels of payment automation, cash-back payments, and early payment discounts we capture, AP is no longer viewed as a cost center, and I can focus on strategic financial initiatives,” says Johnson.

"Thanks to the high levels of payment automation, cashback payments, and early payment discounts we capture, AP is no longer viewed as a cost center, and I can focus on strategic financial initiatives."

Increasing Efficiencies, Improving Vendor Satisfaction

Why Paymode

A leading regional healthcare organization’s AP team was bogged down in paper and needed to transition to electronic payments to maximize efficiencies and streamline payments to vendors.

“Our vendors have been pleased because they’ve been getting priority in terms of the payment process. They’ve also received the benefit of electronic remittance information.”

Reduced costs

By reducing labor-intensive check-processing requirements through Paymode, the organization cut its per-payment costs and associated banking fees by more than $75,000 while also earning rebates. “The AP department can now be a revenue generator,” says Carol Ann Shively, AP manager. “Paymode is now included as a measurable in our performance reviews.”

Streamlined processes

“Paymode is bank-agnostic, and the network did all the work to enroll vendors,” says Tom Paget, controller. "In addition, we liked the fact that the vendor doesn’t have to do anything. The money just ‘appears’ in their account, and the remittance is delivered electronically. Really very efficient.”

Enhanced security

Paymode enabled the organization to outsource the risk and full-time responsibility of acquiring, validating, and maintaining vendor bank account information.