Payment Options Presented by: The Office of Cash Management To: UIUC Business Managers Group October 2, 2007

Effective University Payments – Why You Should Care Cost Speed/Urgency Security – Recall/Repair Payee Requirements

Benefits of Payment Options – Which is Best? Check Purchasing Card (P-Card) Wire Transfer Automated Clearing House (ACH) Foreign Draft

Check Small dollar amount within the U.S. Unable to obtain banking instructions from vendor Vendor may not accept credit cards Costly internal processing Susceptible to check fraud

Benefits of Payment Options – Which is Best? Check Purchasing Card (P-Card) Wire Transfer Automated Clearing House (ACH) Foreign Draft

Purchasing Card (P-Card) Simple, quick & convenient Good alternative to checks Reduces costly internal processing Susceptible to credit card fraud

Benefits of Payment Options – Which is Best? Check Purchasing Card (P-Card) Wire Transfer Automated Clearing House (ACH) Foreign Draft

Wire Transfer Same day transaction (USD) Two days for foreign currencies Preferred method for large dollar amounts Greater than $500,000 Expensive transaction Excellent Security Minimizes payment fraud Difficult to repair / recall

Benefits of Payment Options – Which is Best? Check Purchasing Card (P-Card) Wire Transfer Automated Clearing House (ACH) Foreign Draft

Automated Clearing House (ACH) Cost effective Increased efficiency Improved cash flows Amount known in advance No float / settlement date is specified Fraud resistant Quick notification of payment problems

Benefits of Payment Options – Which is Best? Check Purchasing Card (P-Card) Wire Transfer Automated Clearing House (ACH) Foreign Draft

Foreign Draft “Check” mailed to a foreign country Preferred payment type when: Vendor requests draft payment format, OR Vendor can not receive a wire transfer, OR Amount is too low to efficiently use a wire May be “last resort” payment Difficult to repair / recall Costly to process Susceptible to delay / loss

Important Information Needed From Vendors Account number of payee IBAN if sending to Europe CLABE if sending to Mexico Payee name or bank account title Payee bank name and address

Important Information Needed From Vendors Specify amount of payment & currency ABA (a.k.a. “Routing Number”) Foreign Banks: SWIFT/BIC Currency (USD or foreign) Exchange rate based off the University’s bank when the wire is executed

How to Initiate an Electronic Payment Wire forms can be found at OBFS Forms – Cash Handling www.obfs.uillinois.edu/obfshome.cfm Fill out all information and attach supporting document Retrieve appropriate signatures and phone numbers Send to accounts payable for processing

Additional Resources Foreign Wires Prior to initiating a wire, you can validate the IBAN and SWIFT at: IBAN: www.apacs.org.uk/payments_industry/ibans_4.html SWIFT www.swift.com/biconline

Additional Resources Domestic Wires Prior to initiating a wire, you can validate the ABA at: ABA: www.fedwiredirectory.frb.org/search.cfm

Additional Resources When expecting an incoming wire, contact: Cash Management (cashmgmt@uillinois.edu) or University Accounting (uas@uillinois.edu) What you will need to provide: Vendor name Approximate amount Date of expected transfer CFOAPAL for credit posting to Banner

Summary Tables What’s most important for your payment?

Please e-mail the cash management office at: Questions? Please e-mail the cash management office at: cashmgmt@uillinois.edu Or call us at: 217-333-2400