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Insights and Expertise

tokenization, encryption, firewalls, AVS/CVV, and more
AP automation + fraud prevention to protect every payment. Storing data off your server
a smart synergy ensures robust security and compliance. By utilizing fraud
tools, greater operational efficiency can become the norm.
Accounts payable (AP) automation and fraud
prevention go hand in hand, offering a powerful Challenges and considerations
defense against rising threats in digital payments. of AP payment automation
Automation not only streamlines processes—from
invoice receipt to payment execution—but also Implementing payment automation presents several
fortifies them with security features that reduce challenges, with one of the most significant being the
human error and prevent unauthorized access. integration of legacy systems (see http://bit.ly/4lb5k0j). This
process can be intricate and time-consuming, especially
Modern AP systems integrate seamlessly with ERP without the guidance of an expert partner.
platforms to support real-time monitoring, automated
invoice matching and secure data handling. Fraud Ensuring these systems are compatible with new
mitigation tools within these platforms include ACH automation technologies is crucial to minimizing
validation, custodial accounts, dual-permission disruptions. Organizations often struggle to achieve
controls and positive pay services. seamless compatibility between modern automation
solutions and outdated infrastructure.
For example, custodial accounts isolate funds
from main business accounts, shielding sensitive To overcome these challenges, organizations should adopt
banking data. ACH validation screens out fraudulent best practices such as conducting thorough assessments of
transactions before processing, while positive pay their current systems, planning for phased implementation
ensures only verified checks are cleared. and investing in comprehensive training programs for
their staff.
Crucially, AP automation platforms enable permission
control and separation of duties, reducing internal Continuous monitoring and updating of fraud prevention
fraud risk by limiting access to sensitive information. strategies are crucial to stay ahead of evolving threats.
Secure off-site data storage with encryption and Regular audits, real-time monitoring and leveraging
tokenization ensures regulatory compliance and data advanced analytics can help organizations identify and
protection. mitigate potential risks effectively.
Protecting AP payment automation
The bottom line? AP automation, when paired with with fraud prevention
smart fraud tools, transforms vulnerable payment
processes into efficient, transparent and secure The shift toward digital payments and AP payment
financial ecosystems—strengthening trust with automation technology offers significant benefits,
vendors and business partners alike. including enhanced efficiency, cost savings and, most
importantly, fraud detection. However, organizations
Another crucial tactic is ACH validation. Screenings must navigate challenges such as integration complexities
for account status, payment history, ownership, and with legacy systems and initial implementation costs.
consistency of personal identifying information (PII)
intercept fraudulent ACH transactions before processing. By adopting best practices, engaging an expert partner to
This helps lower ACH return ratios, speed up responses guide implementation and continuously updating fraud
to unsuccessful payments and gain deeper insights into prevention strategies, organizations can maximize the
customers. advantages of payment automation.

Permission control and separation of duties are also Looking ahead, the future of payment automation and
essential to avoid assigning sensitive payment information fraud mitigation is promising, paving the way for more
access to a single individual. Secure platforms allow secure and efficient processes. Organizations must
organizations to establish permission hierarchies, enable embrace AP payment automation technology to safeguard
dual control mechanisms and implement contingency their digital payment processes, protect their revenues and
plans. build stronger relationships with customers and vendors.

Additionally, positive pay services can be employed. Darin Horrocks is the executive vice president of business payments at
Banks verify the legitimacy of checks before processing REPAY, https://repay.com, a company dedicated to guiding businesses
them, preventing fraudulent payments. through the ever-changing world of payments while providing innova-
tive and trustworthy technology. Contact Darin via LinkedIn at linkedin.
Finally, data storage is vital for compliance and regulatory com/in/darin-horrocks-9a240b7.
reasons. Secure data storage solutions utilize gateways,

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