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Education

entire authorized payment batch. In the latter sce-
nario, if you authorize 12 payments for a total of
Unlock Your $25,000, a single ACH debit of $25,000 will be drawn
from your account. While this simplifies things for
Growth Potential accountants managing AP across multiple clients,
it makes it much more difficult to reconcile indi-
vidual supplier payments in the accounting system.
With a BCP Loan Direct debit AP solutions record a debit for each

individual supplier payment. This simplifies recon-
ciliation with accounting and is preferred by most
accounting teams.
4. Bank flexibility and payment security controls:
Intermediary account models draw checks from
the provider's FBO account, meaning the business's
bank account information isn't on every check go-
ing to suppliers. This may offer a greater sense of
security, though with obvious drawbacks like slow-
er payment timelines and more difficult reconcili-
ation.

In addition, businesses using intermediary ac-
counts have no control over which bank the account
is with, a seemingly minor detail that becomes criti-
cal in the event that funds are frozen, or the bank
fails.

Direct debit AP solutions typically offer positive
pay integration with the business's bank of choice,
mitigating the risk of B2B check fraud. Some provid-
ers also allow businesses to view check images, giv-
ing comfort to CFOs and controllers. Lastly, direct
debit solutions allow businesses to easily switch
banks without any interruption to your payments.

Automating AP processes at any level is a step in the
right direction. Businesses do not always have a choice
between direct debit and intermediary payment ac-
counts. Newer organizations or those with a poor fi-
nancial history may only qualify for an intermediary
account model that uses a good-funds approach. But for
most, the extra steps created by the FBO account model
elongate payment timelines, complicate reconciliation,
BOCA reduce control over funds and potentially jeopardize
CAPITAL vendor relationships.
PARTNERS
Jill Rosenthal is Vice President of Payment Operations for MineralTree,
a Global Payments company. In her role, she leads the teams respon-
Get a loan from $100,000 to sible for optimizing customers' payments and providing value to
their vendors. She has spent over 20 years in the payments industry.
$5,000,000 for your ISO today Prior to MineralTree, Jill spent 14 years at JPMorgan where she held
leadership and strategy roles in their commercial payments business.
Contact her at linkedin.com/in/jill-rosenthal-966948139.

Call Now: 844-531-4957
bocacapitalpartners.com

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