Paymode-X
Make and receive secure and convenient electronic payments using a solution trusted by 550,000+ member businesses.
Discover how three organizations use the Paymode-X payment network to elevate efficiency and improve the bottom line.
Read the case study ebook to learn how:
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
1: Automating Check Payments, Gaining Financial Returns
2: Increasing Efficiencies, Improving Vendor Satisfaction
3: Enhancing Security, Cutting Costs and Complexity
Sixty-three percent of businesses still make at least half of their AP payments by paper checks, 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-X 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-X processes $400 billion in payments annually. Paymode-X 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 the Paymode-X Intelligent Engagement model, which removes the burdens of vendor ACH enrollment and bank account maintenance.
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.
Within a few months, the organization automated nearly 15,000 of its 50,000 check transactions as a result of its Paymode-X network matches and the vendor enablement support provided by the Paymode-X team. This helped optimize its working capital and earn significant cash-back rebates – a result applauded by its procurement and executive teams.
“We chose Paymode-X 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.”
Because Paymode-X 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.
“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."
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.
“We were able to go paperless on a significant portion of our check run,” says Allyson Hicks, director of finance at the hospital. “I think the most significant impact of Paymode-X has been that efficiency for our accounts payable team.” The hospital can also easily opt to use corporate credit cards or, when needed, printed checks to make payments.
Paymode-X cash-back rebates have enabled the hospital’s AP department “to transition from a cost center to a revenue center,” says Hicks.
“Our vendors have been pleased because they’ve been getting priority in terms of the payment process,” says Hicks. “They’ve also received the benefit of electronic remittance information. Paymode-X has taken on the responsibility of securing our vendors’ confidential information and their banking information. That was paramount and enhances our vendor relationships.”
The organization needed to manage nearly 100 disbursing bank accounts across various properties. With an average of 1,500 checks issued per week requiring manual review and mailing to more than 3,000 vendors, the finance team was concerned about high per-payment costs, their inefficient payment process, and the risk of check fraud.
By reducing labor-intensive check-processing requirements through Paymode-X, 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-X is now included as a measurable in our performance reviews.”
“Paymode-X 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.”
Paymode-X enabled the organization to outsource the risk and full-time responsibility of acquiring, validating, and maintaining vendor bank account information.
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