Paper checks are becoming relics of the past. As finance teams search for smarter, faster, and safer ways to pay vendors, ePayables are stepping into the spotlight. They don’t just eliminate manual effort, they unlock better control over cash flow, strengthen supplier relationships, and even return money to your bottom line through rebates.

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What this blog covers:

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• What ePayables are and how they work
• A breakdown of common ePayables fees and how they're applied
• The differences between EFT, ACH, and ePayables
• Top benefits of using ePayables for accounts payable teams
• Emerging trends shaping the future of electronic payables
• How Spendflo supports businesses in optimizing the ePayables process
• Frequently asked questions on ePayables and their business impact

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What Are ePayables and How Do They Work?

ePayables are virtual card-based payment solutions that allow businesses to pay suppliers electronically. Each payment is tied to a unique virtual card number, offering enhanced security and automation. These virtual cards are issued and processed through a partnering financial institution. 

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Once approved, the supplier receives the card details, processes it like a credit card, and gets paid, usually faster than traditional methods. This system streamlines AP workflows, ensures compliance, and opens up rebate opportunities for buyers.

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Breaking Down ePayables Fees

ePayables offer plenty of upside, but let’s talk brass tacks, what’s the cost? While buyers often benefit from cashback or rebate incentives, suppliers usually incur fees to process virtual card payments. Understanding the fee structure is key to evaluating the full value of any ePayables program.

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Common Types of ePayables Fee Structures

The most common fee is the interchange fee, which is charged by the card network and deducted from the supplier’s payout. Depending on the provider, these fees typically range between 2% to 3%, similar to regular credit card processing fees.

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How Fees Are Charged to Buyers vs. Suppliers

Here’s the upside for buyers: most ePayables programs don’t charge them directly. Instead, they often earn rebates based on spend volume. The suppliers, however, absorb the processing fees. This trade-off is often justified by faster payments and fewer payment disputes, which are common with checks or ACH.

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Factors That Influence ePayables Costs

Not all fees are set in stone. Variables like transaction volume, industry type, and supplier tier can influence rates. Enterprise-level suppliers often negotiate lower fees, while smaller vendors may pay closer to the standard rate. The payment timeline, net-15 vs. net-45, can also impact cost.

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Ways to Minimize ePayables Transaction Fees

Want to reduce friction with your suppliers? Offer faster payment terms in exchange for fee acceptance, or assist them with onboarding to preferred processors that charge less. Clear education upfront also helps minimize concerns and increases adoption.

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So, while there are costs involved, the net value of ePayables, when implemented strategically, far outweighs the fees.

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EFT vs. ACH vs. ePayables: Key Differences

When it comes to digital payments, it’s easy to confuse EFT, ACH, and ePayables, they all move money electronically. But the way they work (and what they cost) can vary significantly. Choosing the right method depends on your priorities: speed, control, cost-efficiency, or cash-back incentives. Businesses should align their choice of payment method with an overarching payment strategy. 

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Here’s how they stack up:

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Top Benefits of Using ePayables for AP Teams

For accounts payable teams juggling vendor relationships, payment approvals, and month-end close, ePayables can feel like a superpower. They don’t just digitize payments, they optimize the entire AP process from approvals to cash flow. That optimization begins from the moment of invoice receipt and continues through final payment. Here’s why more finance teams are making the switch.

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Improves Payment Efficiency

Manual payment processes are slow, error-prone, and resource-intensive. With ePayables, AP teams can automate payment approvals, initiate payments directly from their ERP or procurement system, and eliminate the need for paper checks or bank transfers. The result? Faster processing, fewer bottlenecks, and more time for strategic work. AP automation helps eliminate repetitive tasks, freeing up resources for higher-value activities. 

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Enhances Security and Reduces Fraud Risk

Each ePayables transaction uses a single-use virtual card number, which makes fraud nearly impossible. Unlike checks or even ACH, there’s no reusable routing data or account number to steal. Plus, real-time tracking and configurable controls mean you always know who’s paying what, when, and to whom.

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Strengthens Supplier Relationships

Faster payments, clear reconciliation, and reliable remittance data make life easier for suppliers. While some vendors may hesitate at the processing fees, many value the predictability and speed of ePayables, especially when it helps them get paid quicker without chasing down late checks or lost wires.

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Offers Better Cash Flow and Rebates

Because payments are made via a virtual credit card, the buyer’s cash isn’t immediately withdrawn. This creates a short-term working capital buffer, and in many programs, buyers can earn cash rebates based on their spend volume. The extended payment cycle gives finance teams more room to manage liquidity. It’s a win-win: improved liquidity and additional income.

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In a world where AP is under pressure to do more with less, ePayables deliver speed, control, and tangible financial gains. For any AP department, the move to ePayables can significantly streamline operations. 

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What the Future Holds for ePayables and Digital Payments

The digital payments landscape is evolving fast, and ePayables are right at the center of it. With CFOs pushing for real-time visibility, tighter cash management, and fewer manual workflows, the future of payables is shaping up to be smarter, faster, and far more connected than it is today.

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The Shift Toward Digital-First AP Processes

Organizations are steadily phasing out paper checks and legacy systems. In their place? Fully digital AP workflows with integrated tools that manage everything from purchase requests to final payment. ePayables are becoming a critical part of this shift, offering automation, transparency, and control without the manual grind.

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Emergence of Virtual Cards and Dynamic Discounting

Virtual cards aren’t just a trend, they’re becoming the new standard. They're also increasingly being adopted for secure global payments across supplier networks. And now, companies are layering on dynamic discounting, where vendors get paid faster in exchange for offering a discount. With ePayables, these strategies can be automated and scaled, benefiting both sides of the transaction.

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AI and Automation in Payables

AI is making its way into AP, not just to route invoices or flag errors, but to predict payment timing, suggest optimal cash allocation, and even automate vendor negotiations. These innovations are reshaping the future of financial operations within enterprise teams. ePayables systems will increasingly use AI to offer strategic insights, not just process payments.

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Growing Supplier Adoption and Expectations

As more suppliers get familiar with ePayables, they’re starting to expect this level of speed and reliability. Payment terms may stay negotiable, but the format, digital, secure, and trackable, is becoming the default.

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Tomorrow’s payables aren’t just about sending money. They’re about creating smarter, value-driven relationships between buyers and suppliers.

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How Spendflo Helps Streamline the ePayables Process

Managing ePayables across a growing vendor network can get complex fast, from handling approvals to making sure payments align with budgets and contract terms. That’s where Spendflo steps in.

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Spendflo consolidates procurement and payables into a unified workflow. It also supports faster invoice processing by automating key checkpoints and validations. Our platform integrates directly with your existing ERP or finance systems, making it easier to initiate and track ePayables without leaving your core tools. A well-integrated ERP system ensures seamless handoffs between procurement and finance functions. By automating approvals, syncing contract data, and maintaining visibility into spend, Spendflo ensures your AP team never loses control, even as transaction volume grows.

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You also get expert support. Our embedded procurement team helps you onboard vendors, negotiate better terms (including discounts or preferred fee structures), and optimize payment timing to improve working capital and rebate potential. Spendflo also simplifies vendor onboarding through guided workflows and documentation support. 

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With Spendflo, ePayables become more than just a payment method, they become a strategic advantage.

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Frequently Asked Questions on ePayables

What are the main differences between ePayables and ACH payments?

ACH payments are batch-processed bank transfers, typically low-cost and slower (2–5 days). Many businesses rely on ACH for direct deposits and payroll transactions. ePayables use virtual cards that offer faster payments, greater security, and rebate potential, but suppliers pay a processing fee.

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Can ePayables improve cash flow for small businesses?

Yes, buyers can delay cash outflows thanks to card billing cycles, while suppliers often get paid faster, improving cash position for both parties.

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Are ePayables secure for large-volume transactions?

Very. Each transaction uses a one-time virtual card number, reducing the risk of fraud or unauthorized access.

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How do suppliers benefit from accepting ePayables?

Suppliers enjoy faster payments, reduced paperwork, and fewer payment disputes, despite the processing fee. This makes ePayables an ideal choice for managing vendor payment more efficiently.

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