As there are minimal human touchpoints required for STP, the process is less prone to errors with less exception handling
AvidXchange, a US-based provider of accounts payable (AP) automation software and payment solutions, said that high-frequency supplier customers who are paid via the AvidPay Network can now avail its straight through processing (STP) solution.
AvidPay is a payment automation solution built by the company for automating bill payments to provide savings in payment processing costs.
According to AvidXchange, by completely automating the delivery and receipt of payments, the straight through processing solution gives a more convenient and reliable process.
After the buyer customer dispatches a payment, the funds directly flow to a merchant processer. The funds are then deposited into the bank account of supplier customer, thereby ensuring that funds are available faster compared to being issued a virtual credit card.
AvidXchange chief growth officer Dan Drees said: “STP is a great example of our continued dedication to the improvement of our automated AP and payment offerings for both buyers and suppliers.
“We began exploring STP in 2020 as a result of the feedback we received from our supplier customers with a high number of payment transactions, and we expect the appetite for this to continue both from our customers and the B2B industry at-large as the world continues to evolve.”
AvidXchange further stated that as there are minimal human touchpoints needed for straight through processing, the process is less prone to errors with less handling of exceptions.
In addition to that, straight through processing gives detailed remittance data through a daily remittance file to make bookkeeping easier, said the company.
Capital Lock vice president and co-owner Bryce Clark said: “With STP, I save at least one hour each week not having to manually enter dozens of check transactions and I receive payments much faster than using paper checks sent through the mail.
“I look forward to experiencing the additional time-saving benefits when apartment turnover season approaches and know I can rely on my AvidXchange team to help with any challenges I encounter.”