A survey by Nacha and Blueflame Consulting and Research found that Accounts Payable (AP) operations face challenges collecting, verifying and maintaining data, which is adding costs and increasing fraud exposure.
The survey, which coupled a questionnaire with in-depth interviews of businesses, banks and payment providers, found that a robust vendor master is vital to achieving payment efficiencies and mitigating fraud risk for AP operations. In response, the industry is calling for better automation of these processes, and the research shows that a tool like Phixius is critical to answering that call.
Responses related to vendor onboarding also cite difficulties with tracking new vendor requirements, which can require system and reporting re-configurations, and confirming vendor information changes. In particular, validating vendor bank account change notifications, a key control for mitigating fraud, is manually intensive.
Additionally, respondents shared that they faced increasing fraud attempts aimed at compromising the AP processes. While current fraud tools are helpful, there is no systematic or automated option for accomplishing this.
With these challenges in mind, survey respondents said they want help with the collection, verification and validation of vendor information. That’s where Nacha’s Phixius comes in.
“By leveraging an inter-connected platform, standardization and rules, Phixius creates interoperability between trusted providers of vendor information and seekers of vendor information,” said George Throckmorton, Nacha Managing Director and Executive Director of Afinis Interoperability Standards. “Through this, Phixius automates the exchange and maintenance of trusted vendor information to reduce fraud. It’s one of the reasons Nacha created Phixius.
“These survey results are exciting because they show, with Phixius, we have created a new utility that will answer the need for better AP controls the industry has asked for,” said Throckmorton.
Phixius is a subscription-based data service platform, available now, that facilitates the trusted exchange of vendor information, as well as other pre- and post-payment information. It connects two parties securely, easily, and effectively utilizing a model built on established rules, technology, and six core principles: security, privacy, standardization, authentication, trust and auditability.