Electronic Invoice Presentment and Payment (EIPP)

The invoicing of clients is one of the most important aspects to running a business as it initiates the payment process for goods or services. When carried out by post, invoicing can be slow and long winded, especially if follow up dunning letters are required. Electronic invoice presentment and payment (EIPP) provides a less complicated and more secure method of invoice distribution and payment. EIPP is a type of electronic invoicing where a company will invoice its clients and is able to collect payments electronically, using the internet. Invoices can therefore be paid automatically and from any computer with internet access, so e-billing is often more convenient for the client.

Electronic Invoice Presentment

Presenting invoices electronically requires a company to have a compiled mailing list of clients. Each client should have a file with continually updated details of their present invoicing requirements. When an invoice is due, an email will be sent to the client. This will either contain their invoice as an email attachment, or contain a link directing them to a secure web page where their invoice can be viewed.

Electronic Invoice Payment

Electronic invoice payment can take various forms. Although traditional methods of posting a cheque or through a bank branch are still in use, it is becoming more common to pay bills using the internet. Clients are able to make payment using a feature on a specific company website. Often, the company receiving payments will outsource another company, who specialise in electronic invoicing and the technology involved, to set this system up for them.

Alternatively, a client can make bill payments using an outside website, for example, that of their bank. The client will send the money from their online bank account directly into that of the owed party. This method can be of great use to all businesses as can facilitate the electronic payment of multiple invoices from companies who they have indexed to receive payments on a regular basis. The money is therefore removed automatically from a client's bank account, saving them further time.

Advantages of EIPP

When compared with traditional methods, electronically presenting an invoice to a client (and the subsequent electronic payment of that invoice) is seen to be fast, inexpensive and secure. Omitting the need to print invoice documents and send them by post allows a company to achieve a faster invoicing process as exchanges between company and client are available to the other party as soon as they are sent. Companies are therefore able to receive payment for services more quickly, allowing their business to run more efficiently. At the same time electronic invoice presentment and payment saves a company the need to print and post invoices, which saves a lot of money.

Postal invoicing offers no confirmation that a client has received their invoice until payment is actually received from the customer. With electronic invoicing, a client can receive an email directing them to a secure web page where they can view their invoice. The company who sent that invoice is then notified once this page has been viewed. This leaves no scope for the customer to deny having seen their invoice, or for it to become lost.