With pull pay, the traditional model of B2B card transactions, suppliers have the payment control. But with push pay (also known as buyer-initiated payments and straight-through processing), buyers have the control and more security.
1. Pull Pay
Supplier sendsinvoice to buyer. Buyer receives invoice from supplier.
1
STEP
1
STEP
Push Pay
Supplier Submits Payment Buyer Initiates Payment
2
STEP
After buyerapprovesinvoice,
supplierreceivesthe following from buyer:
creditcard number,remittanceinfo and
paymentinstructions.
2
STEP
After approving invoice,buyer submits
creditcard number for paymentthrough
card network on behalfof supplier
(supplier neversees cardnumber).
3
STEP
Supplier usesexistingcard
paymentinfrastructure to
submitbuyer’screditcard
number for payment
throughcard network.
3
STEP
$
Supplier receivesfunding
(payment)into business
checking account.
4
STEP
$
Supplier receivesfunding
(payment)into business
checking account.
4
STEP
$
Reconciliationis
automatically balanced
for both buyer and
supplier,because
amountbuyerpays
always matches
amounton invoice.
2
5
STEP
$
If transaction amount
equals invoiceamount,
then both buyerand
supplierreconcile.
Transaction
Complete!
If transaction amount
doesn’tequalinvoice
amount,then the variance
must be accommodated
within both buyer’sand
supplier’s accounting
systems.
Transaction
Complete!
...or…
Infographic by AOC Solutions Inc., 04/2015. All rights reserved.
Questions?
To learn more about buyer-initiated
payments (push pay), please
Contact Us.