Understanding managed payables

Applies to:DevelopersPartnersPaypoints

Payabli’s managed payables feature lets you pay your vendors quickly via the payment method that they choose. This guide explains the payment enablement process, sending payments, and handling payment exceptions for managed payables.

Vendor enablement process

This section explains the general process the payment enablement follows.

Payout captured

After the payout is captured in Payabli, the payments enablement team calls the vendor within 36 business hours of capturing payments to verify their preferred payment method.

Payment enablement team call

The payment enablement team calls the vendor from a phone number with an (801) area code. They ask for the accounts receivable department and introduce themselves with:

“My name is [name] and calling on behalf of [name of merchant]”

Sometimes the vendor doesn’t answer the call, or the payment enablement team can’t reach the right person. In this case, the team will try to call one more time, or they will leave a message and wait 1 day for a return call.

If the vendor doesn’t return the call, or the team can’t reach the vendor on the second attempt, the team automatically dispatches the payment as a physical check. The team will try vendor enablement again on the next payment to that vendor.

vCard attempt

The payments enablement team first offers to pay the vendor by vCard.

If the vendor accepts payment by vCard, then the payment is completed by vCard.
If the vendor wants to accept a vCard, but they charge a service fee above 1.2%, the payment enablement team then suggests ACH instead.
If they don’t want to take vCard, either because they don’t have the ability to or the fee is too high, then the payment enablement team will suggest ACH.

ACH attempt

The payment enablement team offers to pay the vendor via standard ACH. If the vendor accepts, then they must complete an ACH/Direct Deposit enrollment form and submit one of the following documents that includes their business name, business address, and account information:

Printed voided check from the banking institution
Account information on official bank letterhead
First page of a bank statement

It can take 1-3 days to review the documentation and process the vendor’s ACH enrollment. After the vendor is enrolled, payments typically take between 3-5 business days to process, depending on the financial institution.

If the form is completed and enrollment is successful, the vendor is paid via ACH.
If the form is returned incomplete, then the payment is sent as a physical check.
If the form isn’t returned within 2 days, then the payment is sent as a physical check.

Paper check

If the vendor doesn’t accept ACH, then they’re mailed a physical check. The check is processed within 2 days and mailed. Delivery is subject to US Postal Service operations, and the recipient must deposit the check into their bank.

This diagram shows the enablement process from a high level.

Required vendor information

To ensure successful enablement, Payabli requires the following information for each vendor:

Contact name
Phone number
Email address

Make sure this information is current and accurate.

Payabli also needs the correct remittance address to ensure check payments are properly delivered.

Sending payments

Payments in the Payabli managed payables system follow this timeline:

Payments captured before 3:30 PM ET typically pull funds from the payer’s account by the next business day
A two-day hold is applied to ensure all funds clear
Once funds clear, payment is sent through the method selected during enablement

The specific delivery method and timing depends on the payment method:

VCard: Payments arrive by email
ACH: Typically arrive within three to five business days (timing depends on the banks)
Check: Sent through USPS First Class Mail, typically taking five to ten business days to arrive

Canceling payments

You can void or cancel a payment before it’s processed or captured, but only before the 3:30 PM ET capture cutoff. After this cutoff:

The bank draw happens automatically
Cancellations are still possible, but require the funds to arrive in the FBO holding account before they can be reversed
To cancel a payment that’s already been sent, contact Payabli’s payment support team

Updating vendor information

To update a vendor’s address or remittance information:

Make the change on the next payment submitted for that vendor when the payment enablement team calls
Note that updating this information in the Payabli portal won’t automatically update the remittance address

See How do I change a vendor name with managed payables? for complete details.

Payment exceptions

Lost or delayed checks

If a check is lost or not received:

Contact Payabli’s payment support team to stop payment on the original check and issue a new one
The reissued check will be sent within two to three business days of your request
Wait at least two weeks from the date your check was sent before requesting a replacement check due to potential USPS delays

Undeposited checks

If a check is received but not deposited:

The Payabli client success team will attempt to determine if it should be cancelled and reissued
If the check remains undeposited for 190 days, Payabli cancels it and returns the funds to the sender
Checks deposited more than 180 days after issuance are subject to review

Payabli must make contact with the vendor before sending a replacement check. The merchant should contact the vendor for instructions on re-sending the payment.

vCard payment issues

If a vCard payment is made but not received:

Contact Payabli’s payment support team to resolve the issue
Credit card payments that are received but not processed remain open in Payabli’s systems for 180 days
Consider adding reminders in your platform when showing an open vCard payment with a status of “processed”
If a vCard payment is only processed for a partial amount, that vCard can’t be used again. If you need to run more partial payments on that vCard, contact Payabli’s payment support team.

Considerations

Canadian vendors are paid only by paper check, and don’t go through the full vendor enablement process.
If a vendor doesn’t accept an electronic payment method and instead receives a mailed check, the payment enablement team will attempt to enable electronic payments on the next submitted invoice.
For banks that require a allowlist or positive pay, the sender must approve the funding account to draft funds from their account. Contact your bank and give them the Repay bank ID: 2820959731.
Payments worth hundreds of thousands of dollars or more, or payments that look suspicious, may be flagged for review by the bank or Payabli’s risk department.