The Benefit of ePayables

While only 2% of consumers use paper checks, over 80% of small businesses are still holding on. Why? Manual processes slow everything down. Paper documents create excessive risk, require more labor, and drive invoice costs through the roof.

Despite the obvious preference for sending a check, AP teams are under pressure. New technologies are fueling digital transformations that are creating competitive pressure. These tools for payment automation enable continual efficiency by digitizing the entire accounts payable process. 

ePayables (electronic payables) are gaining traction as the most promising contender to replace paper checks, thanks to their ability to lower costs, speed up turnaround, and provide safeguards against errors, fraud, and other cyberattacks. 

In this 5-minute guide, we take a closer look at payment automation, how it works, why ePayables matter, and what successful implementation looks like. You’ll see how ePayables compares to ACH, checks, and traditional cards, what suppliers need to know, and how to evaluate fees as a value trade-off.

What is ePayables? Defining Electronic Vendor Payments

ePayables are electronic vendor payments that replace paper checks with a secure digital payment method (like a virtual card). This one-time or controlled-use number is generated for a specific time, payment amount, and supplier. Think of an ePayable as a temporary digital key. It exists to unlock a payment, and then expires.

If you find yourself searching “What is ePayables?”, know that the goal is simple: to pay suppliers faster, reduce manual handling, and improve security and reconciliation. Whether it’s for online transactions, over the phone, or for setting up automatic payments, B2B virtual cards are a quick and easy way to pay.

One-Time Use vs. Virtual Cards

When it comes to ePayables, there are generally two ways to process digital vendor payments:

1. One-Time Use: A unique number is generated and sent to the supplier at the time of payment
2. Virtual Card: A virtual payment card is assigned to a specific vendor or department and helps track spending.

Real-World Scenario

A medium-sized distributor pays 1,500 invoices per month. Manual checks require printing, signatures, mailing, and time to clear. If a check goes missing, it can set the AP team back hours.

When you’re using ePayables, payments are issued can digitally with remittance details attached. This reduces cycle time and removes the operational headache of check-based exceptions.

Why ePayables Matter in 2026

So, why now? If checks are so prevalent, what’s the catch? In 2026, ePayables are a practical response to how finance is really happening. operates in the real world. People are not waiting by the mailbox to open a paper check and then drive to the bank. 

Why should a business keep operating this way? A survey from Citizens Bank found that 77% of businesses that still use checks plan to transition to digital payments in the next 1-3 years. Common drivers of this payment method for an ePayables solution include:

• Hybrid and remote brands who find paper-based approval and mailing workflows hard to manage
• Any digital transformation strategies that prioritize automation, visibility, and controls
• AP labor shortages and rising costs make manual invoice handling harder to justify
• Increased risks of fraud, especially check theft and payment redirection attempts
• Higher expectations from vendors vendorsfor speed, transparency, and predictable timing

The shift is less about trends and more about survival. AP teams are expected to do more with fewer resources while also improving controls. It’s a big ask. 

ePayables vs ACH, Checks, and Cards: A Comparison Chart

ePayables automation overlaps with other digital payment methods. Here is a simple chart to quickly compare a few of the different ways to virtually pay:

ePayables vs ACH

ACH payments benefit vendors in many ways. It’s the more widely accepted and cost-effective solution, but it also requires sharing bank details and managing supplier data. ePayables reduces exposure to sensitive data and simplifies remittances and reconciliations when paired with AP automation.

ePayables vs Traditional Virtual Cards

Traditional virtual cards are often used as a payment method. However, ePayables programs provide more AP workflow support, controls, remittance details, reporting, and reconciliation capabilities, making them a broader supplier payment solution rather than just a card number.

How ePayables Automation Works: A Step-by-Step Process

ePayables is most effective when it functions as part of a broader AP automation workflow. Here is how the process typically works.

Step 1: Supplier Enrollment

Suppliers are invited to accept ePayables as their payment method. They select how they want to receive payment data and remittance advice. Some suppliers choose a virtual card, while others prefer ACH.

Step 2: Invoicing

Invoices arrive by email, portal upload, EDI, or scan. AP captures the invoice and links it to the supplier record. It will also tie it to the PO (when applicable). 

Step 3: Approval Workflows

Invoices are routed for approval based on factors like:

• Spend thresholds
• Department rules
• Internal policy. 

All approvals are then tracked and logged in the system.

Step 4: Issuing Payment

Once the payment is approved, it is issued through the selected method. If the supplier is enrolled in ePayables, they will receive a notification with remittance data.

Step 5: Reconciliation and Reporting

Payment data and remittance details will then push into your accounting or ERP system. This always reduces manual posting and makes it much easier to answer questions like “Which invoices were paid, when, and how?”

Benefits of ePayables With Real Business Impact

Much like the benefits of electronic invoicing, going digital for payments is a smart move. As the industry moves toward this strategy at breakneck speed, it’s important to understand the value of this approach—especially if it’s the preferred method of the future. 

Make Faster Payments

Switching from manual checks to electronic payments accelerates vendor payments and reduces administrative workload. Automated accounts-payable systems can reduce invoice and payment cycle times by 60%-80% by eliminating manual printing, mailing, and follow-ups. 

Integration with ERP systems will automate reconciliation and free up employees for higher-value, more satisfying tasks. Automated payables often settle supplier payments in 1 to 2 business days compared with typical check cycles of 30+ days. This leads to quicker access to early-payment discounts without increased workload. 

Improve Cash Flow

Using electronic payables greatly improves cash flow by holding cash longer, while still paying suppliers on time, and capturing early-payment discounts. This, thereby, increases working capital returns. 

Some ePayables programs also offer rebates or cash-back rewards on business spending, effectively turning your AP from a cost center into a revenue driver. Faster receipt and settlement of electronic payments also improves Days Sales Outstanding for suppliers.

Reduce Your Costs

Manual AP and check processing create hidden costs from tasks like:

• Printing
• Postage
• Reissues
• Approvals
• Labor

ePayables moves payments into a digital arena. This means it reduces labor costs, reduces exceptions, and eliminates expenses associated with lost or stolen checks. The result is less follow-up work and shorter resolution time for payment issues.

Upgrade Security

Paper checks are stolen, altered, or misdirected. You cannot do that to a digital payment as easily.  ePayables replaces physical payments with secure digital transactions, including controlled payment limits and one-time cards. This creates a definitive audit trail, limits exposure of bank details, and reduces the risk of fraud.

Simplify Administration

Payment automation eliminates repetitive tasks like printing, signing, mailing, and tracking checks. Electronic payments are faster to process, require less manual management, and support remote teams by keeping the entire workflow online.

Enhance Reporting

ePayables come with detailed remittance data that is attached to each payment. This makes invoice matching and reconciliation much faster and more accurate. Automated schedules, digital audit trails, and recurring payment controls will reduce errors, prevent duplicates, and speed up your month-end close.

Strengthen Supplier Relationships

Suppliers value fast, reliable payments with clear remittance. ePayables delivers both, reducing disputes and building brand trust. With quicker settlement, traceable payments, and instant access to historical data, suppliers experience less friction and stronger confidence in your payment process. 

Common Objections and How to Handle Them

Stakeholders may hesitate to pull the trigger for ePayables because they anticipate supplier friction or worry about costs. These are real concerns and should be addressed accordingly. Here are some ideas:

Supplier Acceptance

• Concern: “Not all suppliers accept virtual cards.”
• Counter: “We can offer ePayables where accepted and ACH when preferred.”

Cost vs Value

• Concern: “Card-based payments have fees.”
• Counter: “We need to look at the total cost of payment operations. This includes manual processing, check costs, and time spent on exceptions.”

Integrations

• Concern: “This can complicate posting and reconciliation.”
• Counter: “Remittances will flow back into our accounting system, so we don’t have to input them.”

Compliance

• Concern: “Will auditors accept this?”
• Counter: Digital workflows leverage controls by adding logs, audit trails, and consistent policy enforcement.

Implementation Playbook for AP Teams

A strong rollout of any ePayables platform should be a short project, not a laborious change management effort. Here’s your quick implementation checklist:

Pre-Launch

• Identify vendor payment preferences: what will move to ePayables vs ACH
• Define approval rules and payment controls
• Confirm ERP integration needs
• Set enrollment targets for the first 30-90 days

Supplier Enrollment

• Send out a quick email invite that explains the benefits of the program
• Create a one-page FAQ for suppliers: how payment is received and reconciled
• Give vendors a fallback option 

Policy Checks

• Define who can approve changes in payment methods
• Establish thresholds for qualified payment methods (which vendors can use what)
• Ensure banking and supplier master data policies are openly documented

KPIs to Track

• Payment cycle time
• Cost per payment
• Supplier adoption rate
• Exception and dispute rate
• Reconciliation time 
• Month-end close 

What Does it Cost to Use ePayables?

There is no cost to create a virtual credit card; a small service fee applies and varies by merchant network, ranging from 1.29% to 3.5%. 

However, that cost needs to be put into perspective: the old way of manually handling invoices and checks costs an average of $12-15 per invoice, not including the additional work required when problems occur or payments go missing. It also doesn’t account for the logistical challenges of manual steps in a hybrid or remote work environment.

Automating the entire AP workflow will reduce invoice processing costs by 80% and eliminate the need for staff to correct errors or missing data on invoices. Thwarting fraudsters, who overwhelmingly use paper checks to attack, is another important cost-saving that’s often overlooked.

Understanding Fees: A Simple Chart for Cost vs Value

Like any other operational investment, fees for an ePayables platform should be evaluated on what you pay vs. what you save.

Think this through. A nominal service fee can be worth it if it replaces manual labor, reduces fraud exposure, and improves cash forecasting. Then, it becomes a strategic investment. The most effective way to compare fees is to look at the total cost per payment, not just the transaction cost.

What Suppliers Need to Know

When suppliers also understand what’s changing, adoption moves quicker. Suppliers generally want to stay in the loop on:

• How they receive remittance information and their payment details
• How to reconcile ePayables in their accounting system
• Who to contact if they have a payment question
• What alternatives can they choose if they do not want ePayables

When payment remittances are clear, and everything’s on schedule, suppliers spend less time chasing payment status and more time serving customers.

The Few Limitations of ePayables

There are a few limitations to using a virtual card for invoice remittances. They can only be used for online or phone transactions, so they’re not the right payment method for all B2B scenarios. Additionally, not all vendors will accept them. However, it’s only a matter of time.

The trend toward ePayables is clear. When Yooz polled 1,200 finance leaders in the latest State of Automation in Finance (SAIF) market research report in early 2022, almost a quarter (24%) of them said they have already adopted one form of digital payments or another, including virtual cards. And another 49% plan to follow suit this year, making 2022 the year to watch for virtual cards coming into their own. Because it quite literally pays to pay with them.

Yooz Elevates Your ePayables Process  

In a recent survey, more than 66% of AP teams reported lower costs after implementing an automated AP solution like Yooz. The system automates invoicing with no initial setup, streamlining your workflow from day one. 

Imagine starting your automation journey in under an hour, with no training required. Yooz combines real-time AI performance with comprehensive business functionality, making it the ideal dashboard for transforming your ePayables process.

The system was designed to automate every stage of your procure-to-pay (P2P) process, reducing manual work and eliminating costly errors. Yooz offers unmatched expertise in automatic document processing, with a robust cloud-based solution. 

Recognized by prestigious awards and trusted by the global financial ecosystem, Yooz stands out in the ePayables landscape. Choose Yooz to revolutionize your ePayables, because you’re not just upgrading your ePayables; you’re stepping into the future of financial management.

Summing it Up

In 2026, ePayables is no longer a future-state strategy. They’re happening right now. Companies that use AP automation reduce expenses and risk exposure, achieving processing cost reductions of up to 80%. 

Once payments are digitized and connected to approvals, remittances, and reconciliation, AP no longer becomes a bottleneck. It evolves into a lever for cash flow visibility, security, and operational scale.

The path forward does not have to be disruptive. Start with supplier segmentation, test a pilot group, track cycle time and exception rates, and expand based on measurable results. When payments, controls, and reconciliation are integrated into a single workflow, finance teams gain speed without sacrificing control.

See how Yooz can help your team reduce manual AP work and cut costs by up to 80%.