Supplier payments solutions help businesses execute supplier payments in a digital, secure and efficient process. Supplier invoices are processed and approved as part of the accounts payable process often using an accounts payable automation solution. Once invoices are approved the next step is to authorize and transfer the payment to the supplier according to the agreed payment method.

In many organizations, the payment process is fragmented, fractured and open to the risk of error or fraud due to inefficient manual touchpoints. This is where supplier payments solutions can support by removing manual steps and consolidating processes into a single digital payments channel.

Many supplier payment solutions include automation functionality to further accelerate the payment process. These systems may also offer risk scoring features to help identify potentially fraudulent invoices and prevent payment mistakes.

Supplier payments solutions digitize and consolidate disparate processes into one streamlined channel for all supplier payments. When a supplier invoice is approved and posted to the ERP system a payment file is transferred to the supplier payment solution. Then the supplier payments solution will conduct an automatic risk scoring and payment review before initiating the payment approval process.

Once everything is clear and authorized payments may be released via a file integration to the organization’s bank.

The main functions of supplier payments solutions include digital approval processes, automatic risk scoring, fraud detection, and bank file integrations.

With supplier payments solutions, businesses can remove lengthy and error-prone manual approval processes via email or signature on paper. Instead, all review and approval steps are conducted in a secure online tool allowing for full visibility and audit trail of payment transactions.

Digital supplier payments solutions also include risk scoring functions that automatically identify anomalies – such as a new supplier, changed supplier banking details or duplicate payments –to stop potential fraud.

Bank integration is another important function where supplier payment solutions can offer a secure and fast data flow from the business ERP system directly to the bank enabling faster payment transactions.

There are many reasons for businesses to use supplier payments software. Firstly, it will remove manual touchpoints and digitize the entire payment process. Not only does this enable a fast and efficient payment execution, but it also removes the risk of errors and mistakes.

Secondly, supplier payments software can be used to automatically identify invoice anomalies to reduce the risk of fraud and duplicate payments.

Thirdly, businesses that use supplier payments software will generate important cost savings. Internal efficiency gains allow staff to spend their time on more value-added tasks. And timely payments to suppliers will remove late payment fees as well as potentially generate early pay discounts. There may also be opportunities to avoid cross-border bank transfer fees if the supplier payments software is connected to an international bank network.

Businesses can automate supplier payments processes using a digital payment solution, preferably integrated with the accounts payable system to allow for a streamlined invoice to pay process.

Traditionally many steps of the supplier payments process, including uploading transaction files to bank portals and obtaining payment authorization, have been managed manually.

A supplier payment solution can automatically conduct a risk review and flag potential fraudulent invoices as well as manage the payment approvals in a fully digital process. Once payments are authorized a transaction file can automatically be transferred to the bank via a file integration.