Decreased paper use - in the accounting office, that is - can equate to better cash flow. How much better? Try an average of 15 days per month with the help of an electronic settlement tool from GE called vPayment.
"Using this type of electronic settlement tool, we can more precisely forecast and manage cash flow," said Sean Wille, Hallmark Cards Disbursements Manager. "In addition, our vendors may receive improved and more predictable cash flow as well."
Hallmark began researching vPayment in mid-2003 as it was looking for strategies that would save processing time and the cost of producing manual checks. The system went online a year later, and now about 400 of its vendors utilize vPayment.
Using patented technology, vPayment works like a MasterCard account number, only without the card. Each time an invoice is ready for payment, vPayment sends Hallmark a new credit card number with specific amount and time period parameters. Hallmark then provides that number to its vendor - say a provider of office supplies -- who applies the invoice amount to the credit card number. In essence, Hallmark "charges" its payments to the account number - so any vendor who accepts credit cards can use vPayment. Currently, vPayment is accepted by more than 23 million suppliers worldwide. Then Hallmark makes one payment to GE each month for all of the vendor invoices.
"Because vPayment functions like a credit card account, there's very little training required for suppliers," Wille said.
Hallmark isn't the only company jumping on the paperless payment bandwagon. A Federal Reserve study released in December 2004 shows that electronic payment transactions have surpassed check payments for the first time. U.S. e-payment transactions totaled 44.5 billion in 2003, compared with 36.7 billion checks. Electronic payments grew an average of 13.2 percent annually from 2000 to 2003, and check payment volume declined an average of 4.3 percent per year.
"vPayment fits well with corporate end-to-end spend management," said Jeffery R. Dye, President and CEO of GE's Corporate Payment Services unit. "vPayment will prove attractive to organizations because it offers financial incentives similar to purchasing cards, but it delivers more capabilities for control and data capture."
About GE Corporate Payment Services
Corporate Payment Services, the commercial card unit of GE Consumer Finance, develops and markets corporate bank cards and e-settlement tools designed for small-, medium- and large-sized companies and organizations. Cards are issued by GE Capital Financial Inc. For more information, visit www.gebusinessmarketplace.com/int_vpayment.htm.
GE Consumer Finance, a unit of General Electric Company, with more than $150 billion in assets, is a leading provider of credit services to consumers, retailers and auto dealers in 47 countries around the world. GE Consumer Finance, based in Stamford, Conn. (USA), offers a range of financial products, including private label credit cards, personal loans, bank cards, auto loans and leases, mortgages, corporate travel and purchasing cards, debt consolidation and home equity loans and credit insurance. More information can be found online at www.geconsumerfinance.com.
GE (NYSE: GE) is Imagination at Work -- a diversified technology, media and financial services company focused on solving some of the world's toughest problems. With products and services ranging from aircraft engines, power generation, water processing and security technology to medical imaging, business and consumer financing, media content and advanced materials, GE serves customers in more than 100 countries and employs more than 300,000 people worldwide. For more information, visit www.ge.com.
Contacts
Tag Team Global, New York
Rebecca Cisek
Mobile: 913-963-3344
[email protected]
or
GE Consumer Finance, Corporate Payment Services,
Salt Lake City
Michael O'Malley
Office: 801-517-5711 or Mobile: 801-652-5578
[email protected]
Jeff Wilson
GE Capital Corporate Finance
[email protected]
1-203-749-6340