Hello all. We are considering implementing bill pay, but have concerns about fraudulent checks and bank account security. I am curious what precautions have other Bill Pay users have taken and if anyone has found a good way to utilize Positive Pay.
Thank you!
Hi Christopher! Rehana here from the Customer Success team at Ramp. Ramp will withdraw funds via an ACH debit from your connected bank account on the scheduled date which can take 2-5 business days to process. Once Ramp receives these funds, we will issue and deliver a paper check to your vendor within 4-7 business days. If a check is not cashed within 180 days of its issuance, Ramp will automatically void the check. You can see more information by clicking here.
Christopher,
I have been using Bill Pay for the past few months. We have not been able to utilize positive pay, because the checks are drawn out of Ramp’s bank. They will debit your account with an ACH for each payment individually, which makes bank recs much easier. I have found that I am transitioning more of my vendors to ACH, which helps prevent check fraud.
Thank you very much for your response Roger. Are you able to provide me with a some insight into how your bank recs work now? When you match the payment, say for a payment made to Comcast, are you seeing Comcast on both your accounting system side and the bank transaction side of the rec or are they showing as payments to Ramp?
Thank you for the information Rehana.
Hi Christopher,
When you pay a Bill, Ramp does an ACH debit out of your bank account. My bank shows it as ACH Debit Comcast. It is a separate debit for each bill pay which makes the rec simple to match. Since they are writing the checks out of their account you do not have any outstanding checks. They keep track of outstanding checks and will notify you after 6 months if one does not clear, and give you an opportunity to reissue or get a refund, which would be an ACH credit back to your bank. I hope that helps.
Thank you very much Roger! I appreciate the information.