What steps have companies taken to convert vendors to the Electronic Funds Transfer (EFT) payment method? We want to increase the number of vendors that we pay via EFT.

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Below are a few ways some companies have enlisted their vendors to an EFT payment method:

  • A company generating a significant volume of business with a vendor can require payment by EFT in order for the vendor to remain on a preferred vendor status. If a company does not have a preferred vendor program, then you may want to take this opportunity to develop one, whereby a vendor can get on the preferred list if they accept an EFT payment.
  • Some companies have sent vendors a general no obligation solicitation to sign up for their company's EFT payment program, pointing out the benefits to the vendors of switching to an electronic payment from a paper check (e.g. quicker settlement by EFT than mail, greater security, elimination of manual mail processing, etc.) This letter might be targeted to a certain group of vendors or all of the company's vendors. This solicitation message focuses on how vendors accepting an EFT payment would receive payment faster then under their current paper-based process.
  • Some large, market-dominant organizations simply require vendors to accept payment via EFT in order to do business with them.

 

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