The study, carried out by PayStream Advisors, reveals that these practices cost organisations heavily in payment fees, time, and manual labour, and they can have negative impacts on supply chains and supplier relationships.
According to the study, 73% of US-based companies are now making some type of cross-border payments. However, international payment management entails taking on much more effort and risk than domestic payments in terms of compliance with international tax and regulatory requirements.
The report also finds that, amongst organisations making more than 2% of their payments cross-border, businesses are overwhelmingly making their international payments using wire transfers. These incur high processing fees and are now the second most targeted payment method by fraudsters, but they are still regarded as more reliable than paper checks.
Tipalti’s study trends over the past two years show that increasing Global ACH usage seems to be more of a priority for companies with higher amounts of cross-border spend. Global ACH also has the added benefit of having much lower fraud exposure than check and wire transfers. Thus, very few organisations are trying to increase the frequency with which they disburse funds via paper check.
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