JPMorgan Chase & Co. has started offering an electronic settlement system called AP Trac, the first offering to result from its May purchase of the corporate invoicing and payments technology provider Xign Corp.
The New York banking company said Monday that the system, which is available now, is designed to replace paper checks.
When a company's accounts payable department approves an invoice, it sends the payment information to JPMorgan Chase, which settles the transaction across a commercial purchasing card network. Suppliers receive payment notification and remittance details electronically, and the funds are deposited into their accounts as quickly as two business days.
Both parties can track the payments online.
The vast majority of business-to-business payments are still made by check.
Many companies already use purchasing cards for small items, such as office supplies. Richard Erario, JPMorgan Chase's senior vice president and business executive for commercial card and electronic procurement, invoicing, and payables, said in a press release that AP Trac "extends the benefits of purchasing cards to accounts payable spend while maintaining the controls necessary for high-value payments."
