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

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

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

4. 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

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

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

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

8. 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

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

10. 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

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

12. 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

13. 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

14. 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

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

16. Additional Resources Foreign Wires
Prior to initiating a wire, you can validate the IBAN and SWIFT at:
IBAN:
SWIFT

17. Additional Resources Domestic Wires
Prior to initiating a wire, you can validate the ABA at:
ABA:

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

19. Summary Tables
What’s most important for your payment?

20. Please e-mail the cash management office at:
Questions?
Please the cash management office at:
Or call us at: