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Calculate the Costs and Savings

Get a quick estimate of the costs and savings of using Direct Payment via ACH. Our Direct Payment via ACH calculator uses industry-average data for over thirty variables to provide you with a quick estimate.

Accounts Payable This Year % Change Projected
About this section

AP Operations is an accounting area ripe for automation, because processes typically are labor intensive. Cost barriers are beginning to disappear as enrollment, imaging and workflow solutions become more wide spread and affordable. Automation, including supplier enrollment through electronic channels and electronic invoice receipt and payment, reduces checks and paper throughout the accounts payable process chain from supplier enrollment to post-payment maintenance and support. Automation reduces your company's energy footprint and reduces business costs. Good for the environment. Good for your business.

Suppliers This Year Next Yr Projected
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Enrollment: Automating enrollment through electronic channels such as an enrollment portal, email or fax allows workflow engines to quickly provide and process onboarding credentials and can assist in supplier verification.

Fraud: Increasingly, Accounts Payable (AP) fraud begins at the point of supplier enrollment. Busy AP departments often do not confirm/verify enrollment credentials or if they do, they use the same channel through which the enrollment request was received (e.g. e-mail) or do not perform an alternate channel telephone verification.

Invoices This Year Next Yr Projected
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Automating invoice receipt and processing can greatly improve productivity of the AP department. In the largest companies, invoice automation (electronic invoices, scanning invoices into workflow) can nearly double productivity (IOMA).

Payments This Year Next Year
About this section

The check remains the dominant form of payment form of payment of invoices (schedules and rushed), yet checks are expensive to produce, process, and reconcile and they are prone to tampering, fraud, and duplication. ACH payments are easier to embed in workflow, reconcile, avoid duplication, and are very difficult to alter. Some industry sectors have embraced electronic payments. According to IOMA, 35.8 % percent of tech sector invoice payments were made via ACH, another 5.4% were made via wire transfer or other EFT.

Post-Payment & Maintenance This Year % Change Default Costs
About this section

Post Payment: Much of the processing that occurs after an invoice is paid is related to checks: replacements, stop payments, reconciliation, escheatment, and duplicate check issuance. Paying with ACH Credits eliminates or reduces many of these costs, although certain types of maintenance (e.g., supplier address, bank account, etc.) may remain the same for checks and ACH Credits.

Supplier Maintenance: Maintaining supplier records is part of doing business, but typically cost a significant amount of labor and paper. Phone and manual maintenance request processing costs twice as much as more automated e-mail and fax, but together, they represent processes where paper is generated (a printed email or fax, a photocopy, etc.). Providing automated or electronic means of supplier self service, can greatly reduce both environmental and business impacts.

Report Card

Summary Scorecard Reports

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Business Cost Summary

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Business
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Business Scenario Details

Current Scenario Projected Scenario

Environmental Savings Summary

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Consumption
Projected
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Environmental
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Detailed Scorecard Reports

Detailed Scorecard Reports Overview

Business Cost Analysis

Current Costs Total Pre-Payment Processing Invoice Processing Payments Processing Post-Payment Processing Supplier Maintenance Acct/Service Maintenance Other Costs incl. Fraud
Congratulations! Electronic processes are greener, too. Environmental results below.
By using electronic processes, you can close this distance to the all industry median. See below.
About this section
Projected Costs Total Pre-Payment Processing Invoice Processing Payments Processing Post-Payment Processing Supplier Maintenance Acct/Service Maintenance Other Costs incl. Fraud
Congratulations on potential progress of reducing check float! Reducing float, lowers the cost of funds.
Congratulations! Electronic processes are greener, too. Environmental results below.
Great job. Use this metric to help benchmark your progress.

Environmental Analysis

Environmental Analysis Overview
Environmental Savings Total Pre-Payment Processing Invoice Processing Payments Processing Post Payment Processing Supplier Maintenance
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Current Environmental Consumption

Your Current B2B Invoice to Pay Resource Consumption Total Pre-Payment Processing Invoice Processing Payments Processing Post Payment Processing Supplier Maintenance
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Projected Environmental Consumption

Your Projected B2B Invoice to Pay Resource Consumption Total Pre-Payment Processing Invoice Processing Payments Processing Post Payment Processing Supplier Maintenance
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Environmental Assumptions | Calculator Assumptions (PDF)

Set up Direct Payment via ACH and Start Saving

After the initial costs of setting up a Direct Payment via ACH program, your company will begin to realize savings. Direct Payment services are available from numerous financial institutions and payment providers, and might be bundled with other services depending on the account relationship.

Costs will vary but may include:

  • Setup—Your financial institution may charge you a fee to cover the setup and processing of Direct Payment transactions in a prescribed file format, known as an ACH-formatted file. Many business accounts receivable systems and electronic payment services offered by your financial institution are designed to produce this file.
  • File Transmission—Typically determined by how often your company transmits a file to your financial institution.
  • Transaction Fee—Based on the number of transactions (payments) in your transmission file. Many financial institutions offer volume-based discounts.
  • Returns—Fees may be incurred for payments returned due to NSF or account closed, much like for returned checks.
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