Another agency demands electronic payments
Dec 10, 2012 Dave King
Many experts from around the world are beginning to predict that within the next decade or two, society will be almost entirely cashless. Some nations have even tried to push markets in this direction, such as Canada which eliminated pennies from the currency because it felt it was simply inefficient to have it in place. Businesses are leading the way in adoption rates of electronic payments, while ACH cards are becoming especially common in accounts payable and receivable. Perhaps the most popular use of ACH and wire transfers is for payroll, though the applications continue to expand at a rapid pace. With governments also beginning to use electronic payment methods in higher numbers, security, especially to defend against ACH fraud, is becoming a higher priority of many public and private sector advocates. The benefits of electronic payments are undeniable, but the threats are perhaps even more widespread. Another agency switches to electronic
FCW recently reported that the United States Veterans Affairs Department (VA) is now demanding businesses submit required payments through electronic processing platforms. According to the news provider, the VA believes that switching its accounts receivable department to electronic processing will improve efficiency and efficacy of operations. The source explained that the new rule will go into effect at the end of December, while the announcement was made in November. Officials in the department have been working to get this requirement into action since April, when it gave a Federal Register notice citing the potential benefits of electronic payments. Additionally, FCW noted that a Government Accountability Office report from 2006 went into detail regarding the benefits of electronic invoicing, such as improve data accuracy, streamlined management, reduction of lost documents and the elimination of paper. The VA is the latest department of the government to launch this type of program, as Social Security and other agencies have already made electronic payments mandatory. What this means for businesses
Businesses that have not yet taken the leap into the electronic payments realm are putting themselves in a precarious position, as the rest of the world continues to move toward a cashless marketplace. With government offices now demanding certain payments from companies in electronic form, executives should brush up on cybersecurity responsibilities. ACH cards and wire transfers are common entry points for fraudulent forces, but with the right types of security software and protocols, businesses can mitigate the risks to capitalize on the vast benefits.
FCW recently reported that the United States Veterans Affairs Department (VA) is now demanding businesses submit required payments through electronic processing platforms. According to the news provider, the VA believes that switching its accounts receivable department to electronic processing will improve efficiency and efficacy of operations. The source explained that the new rule will go into effect at the end of December, while the announcement was made in November. Officials in the department have been working to get this requirement into action since April, when it gave a Federal Register notice citing the potential benefits of electronic payments. Additionally, FCW noted that a Government Accountability Office report from 2006 went into detail regarding the benefits of electronic invoicing, such as improve data accuracy, streamlined management, reduction of lost documents and the elimination of paper. The VA is the latest department of the government to launch this type of program, as Social Security and other agencies have already made electronic payments mandatory. What this means for businesses
Businesses that have not yet taken the leap into the electronic payments realm are putting themselves in a precarious position, as the rest of the world continues to move toward a cashless marketplace. With government offices now demanding certain payments from companies in electronic form, executives should brush up on cybersecurity responsibilities. ACH cards and wire transfers are common entry points for fraudulent forces, but with the right types of security software and protocols, businesses can mitigate the risks to capitalize on the vast benefits.
