NEWARK, N.J. (3/25/16)--More than half of companies still make at least 75% of their business-to-business (B2B) payments by check.

This despite most organizations currently have the functionality to do so electronically, according to the 2016 Payment Survey by Accounts Payable (AP) Now.

Only 45% of heavy check users indicated they want to reduce the number of paper checks they issue. “This is unfortunate,” said AP Now’s Mary Schaeffer, the survey’s sponsor, “as paper checks are expensive, inefficient and create extra work on several levels.”

Electronic forms of payment that are being used for B2B include:

• Automated clearing house (ACH): 83% of respondents’ organizations use ACH to varying degrees; and
• Commercial or purchasing cards:  79% have issued cards to employees for the purchase of goods or services.

“I was encouraged by the number of organizations who are equipped with ACH and commercial card functionality,” said lead analyst Lynn Larson, “but usage of these two electronic payment methods definitely has room for improvement. Checks retain a stronghold in too many organizations.”