The P.E.R.K.S of Electronic Bill Collection for Your Company.
Electronic Bill Collection (EBC) is a service Commerce Bank provides that allows bill payments originated through bill payment providers (BPP) to process electronically instead of as checks. A BPP is typically a financial institution that offers online bill pay services to its customers.
The process for EBC is simple. A payer logs into their bank’s online banking website or app, then signs up to pay specific bills via online bill pay. The bank will decide how to send the funds based on different criteria (i.e. which aggregators does the sending bank use and which aggregator does the receiving bank use, is the customer that will receive the money contracted with the appropriate aggregator). If each bank uses the same aggregator, Fiserv for example, then the sending bank will debit the payer’s account and send the money to the receiving bank via ACH.
There are many reasons why Electronic Bill Collection could be a value add for your business.
- Price. EBC is cheaper than having those items process through Lockbox.
- Effective. EBC can reduce exceptions and improve accuracy of payments.
- Runs efficiently. EBC is a product that runs itself which could mean a reduction in errors. And, when all payments have been received for the day, you’ll receive a recon file that can be ingested into your AR system.
- Known in the industry. Online bill pay has been around since the mid 90’s and doesn’t seem to be going anywhere.
- Swift funds availability. You can receive your money faster with EBC compared to a paper check.
If you would like help understanding how EBC can perk up your business, reach out to a member of our team to discuss if EBC is right for you.
- Focus on these 3 business strategies and you will be primed for growth.
- What can small businesses learn from 2021?