Expand Electronic

Payment to Increase
Revenues
Cheryl Shanaberger, MPA, CPPO
Deputy Director
Office of Management and Budget
City of Port St Lucie
March 22, 2013
 Our Purpose Today:
Discuss payment options that generate
revenue

Discuss strategies to implement to

encourage the vendor community to
accept alternate payment methods
 Electronic Payments
E-payables (Electronic Payables)
• Payables automation
• Push payments
• Pull to pay
• STP (Straight-through payments)
• BIP (Buyer-initiated payment)
• EAP (Electronic Accounts Payable)
• SUA (Single-Use accounts)
• EIPP (Electronic Invoice Presentment &
payment)
 Electronic Payments
Procurement Cards
• Travel Cards
• Fuel Cards
 Electronic Payables
Payment systems:

•Initiated & managed centrally within

•Utilize some part of traditional P2P

process
•Suppliers still utilize the card network

•E-Payables are about the payment process

 Electronic Payables
(E-Payables)

• Agency approves invoice

• Agency Notifies provider for payment
• Notification is usually an uploaded file
• Most cases suppliers receive remittance
information from the end-user’s provider
 E – Payables
Supplier gets paid:

• Pull model- by charging a designated card

account # (can be the same or different
each time); Supplier must process a charge
and retain card #
• Push model- (STP) a deposit into it’s
merchant account; similar to an ACH
payment; Supplier does not process charge
 Benefits
• Occur faster than check payments

• Provides more budget control if

incorporated with an encumbrance
process

• Streamlines the payment process

 Challenges

• Slower than traditional P-Card Model

• Less process savings than P-Card

• Less Cash flow savings

• Less beneficial to supplier

Benefits to end-user E-Payables
& P-Card
• Increase days payable outstanding
• Advantage of Early payment
• Eliminates need to retain suppliers’
banking information
• Reduction in check payments and cost
• Reduced exposure to fraud
• No federal 1099 reporting
• Timely reporting & tools for reconciliation
• Increased spend/payment visibility
 Agency Challenges
• Incorporate electronic payable into a
payments strategy
• Supplier enrollment
• Internal resources
• It Support
• System integration issues
• Proper data transmission for all parties
 Supplier Barriers

• Cost, Cost, Cost

• Concerns sharing bank account details
• Fear of change
• Concern of retaining card #
 Overcoming Supplier Barriers

• Offer multiple options for invoicing &

payment
• Simplify & promote enrollment
• Know your suppliers
• What offers and incentives can your
agency offer
• Include in all RFP’s & Bids
 Think E – Payment
 Profit Margin
 Retainage
 Mobilization
 Payment Terms
 Rebate sharing
 Bonds
 Fees are deductible by vendor
 Points for Award in RFP
• Rebate considered in award
 Questions?

Ref: Bank of America Merrill Lynch, Driving

automation in the payable process June
2012
Ref: NAPCP.org, Electronic Payables