Choosing Your Path: A Guide to Vendor Payment Options at VCU
At VCU Procurement Services, we strive to provide a transparent and efficient experience for our campus departments and the businesses that support our university. A frequent question we hear from staff and faculty is: “How is a vendor’s payment method determined?”
The answer is simple: The vendor is always in the driver’s seat. They choose their payment method and must agree to making a change.
VCU and our banking providers do not sign up companies for specific programs unilaterally. Instead, we offer a “continuum” of options, and each vendor opts into the method that best aligns with their business goals.
The Payment Continuum: Benefits for Our Vendors
Our goal is to pay our suppliers in the most efficient and timely way possible—virtually. By choosing electronic methods over traditional checks, vendors can significantly improve their cash flow and security.
- Virtual Payment Card
- The Advantage: This is the fastest payment method VCU offers, typically featuring Net 20-day terms.
- Why Vendors Choose It: It provides immediate access to funds and enhanced security, as vendors do not need to share or maintain bank account information with the university.
- Paymode-X (ACH)
- The Advantage: Offers expedited Net 20-day terms.
- Why Vendors Choose It: It is ideal for businesses looking to streamline their bookkeeping. This service provides enhanced digital data that helps vendors automatically match payments to their outstanding invoices without manual research.
- Standard ACH
- The Advantage: A secure, paperless alternative to checks with Net 35-day terms.
- Why Vendors Choose It: It eliminates the risk of mail delays or lost checks, ensuring funds are deposited directly into their bank account.
- Mailed Check (Default)
- The Terms: This is the default selection for vendors who do not opt into an electronic program, featuring Net 35-day terms.
- Note for Departments: Mailed checks are the most expensive payment method for VCU to process. We always encourage exploring electronic options to help the university operate more efficiently.
How Enrollment Works
Vendors can update their preferences at any time. There are two primary ways this happens:
- Direct Opt-In: Vendors can visit the VCU Vendor Invoicing & Payment page for instructions.
- Targeted Outreach: Periodically, we work with Bank of America to coordinate payment method campaigns to highlight the benefits of electronic payments. We are currently wrapping up our most recent campaign, during which many of our vendors have successfully transitioned to electronic methods.
Even during these outreach efforts, enrollment is never automatic. A vendor must always take action to opt into a new program. By providing these choices, we ensure that doing business with VCU is as flexible and efficient as possible for everyone involved.
Categories Procurement Services