Payables Automation

Automate your payment processes to optimise working capital.

Payables Automation

On an average 19.3% of payments in the region by transaction count are made by cheques. The figure is highest in India (44.8%) and lowest in New Zealand (7.8%). Majority of corporates in the region clearly recognise the benefits of being able to send and receive payments real time. 6 out of 10 say that real time payment solutions will enhance their cash flow capability.*
* Visa Cash Flow Visibility Index 2016 (A survey where a total of 806 of the top 1,000 revenue ranked corporations across Australia, Mainland China, Hong Kong, India, Indonesia, Japan, Malaysia, New Zealand, Singapore and Taiwan were interviewed)

Payables automation is software or technology capability that works independently or in conjunction with existing financial management systems. It automates accounting and payment processes that begin with information extraction from an invoice, verification against purchase orders, business systems, and approvals to making payments. Payables automation leads to cutting down of staff time, payment cycles and costs while increasing controls throughout the AP cycle.

How does Payables Automation work

Deploying payables automation capability allows you to send your account payables files directly to Visa or your financial institution from your Enterprise Resource Planning (ERP) system, eliminating processing steps.

Visa’s 16-digit accounts assigned to each of your key suppliers can help them to receive payment. A supplier onboarding process will also be managed so that they, in turn, can process card payments and reconcile receivables without altering existing business practices.

Benefits

Increase Efficiency by Decreasing Paperwork

Electronic processing is more efficient than paper-based systems. Payables automation substantially reduces staff time in manual processing. It requires less time and effort than traditional invoice processing and reconciliation, and avoids exposing reports to potential human error. Visa will send you reconciliation reports electronically so you can match invoices to payments more easily.

Control Spending, Credit Extension and Optimised Cash Flow

Payables automation enables you to adjust your Visa 16-digit account to match approved invoices, reducing the risk of unauthorised payments and increasing your control over spending. Also, compared to other electronic payment channels such as Electronic Funds Transfer (EFT), payment through your financial institution using a Visa’s 16-digit account can give you an on-demand, off-balance sheet credit for up to 55 days. Since your supplier will be charging a Visa account, pay only when the consolidated bill from your financial institution comes, allowing you more flexibility and access to funds as working capital.