We are moving from ACH to virtual payments ...

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Q. (cont.)

How do you get vendors to agree to virtual payments (that charges fees) after they've had the luxury of ACH payments? Do you change the terms for ACH payments, etc.?\

 

A.

We consulted with our practitioner expert, Judy Bicking, who offered the following recommendation:

A best practice approach would be to offer pay terms based on pay method. For example: Net 30 for ACH (represents their normal terms); Net 1 for V-cards (since they have to pay a 2-3% fee). This enables them to have their money on day one in place of no fees. It should be a win/win, but of course, if you commit to net 1, you'll need to follow through on that.

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