Procure to pay in five stages. Most of the work is proving the invoice is right: matched to the purchase order and the goods receipt before anyone approves it. The buyer then sets the payment date, and changed bank details are the moment fraud gets in.
The textbook flow is requisition, order, receipt, invoice, match, approve, pay. In practice it's eleven steps, three teams outside AP own some of them, and the "cycle time" most people quote starts only at step 4.
Requisition. Someone asks to buy; a budget owner approves. Non-PO spend (services, utilities, software) skips steps 1 to 3 and is approved once the invoice arrives.
Purchase order. Procurement issues the PO (the buyer's written commitment: item, price, quantity, terms) by EDI 850, PDF or a supplier portal.
Receipt. The dock records the goods, or the requester confirms the service. Stalls: nobody enters the receipt, so step 5 can't pass.
Invoice capture. The invoice arrives on paper, as a PDF or EDI 810, through a portal or an e-invoice network, and gets keyed, scanned or ingested. Stalls: it lands in a shared inbox without a PO number, addressed to the wrong legal entity or (in Canada) without a valid GST/HST number, and goes back.
Match. Two-way (invoice against PO: price and quantity) or three-way (invoice against PO and receipt).
Exceptions. A variance beyond tolerance, no receipt, a closed PO, unexpected freight, wrong or short goods. Fixed by auto-approving inside tolerance, routing to the requester, asking for a credit memo, or waiting. Stalls: this is the backlog, about 18% of invoices at most enterprises.
Approval. Routed by amount, cost center and category under a delegation-of-authority matrix (who may approve what, up to how much), then posted as a liability. Stalls: non-PO invoices waiting on business approvers who don't see AP as their job.
Scheduling. A payment proposal picks invoices for the next run: on the due date, early for a discount, or later. Fraud and tax holds sit here: newly changed bank details, a name that doesn't match the account, a missing W-9.
Payment run. Treasury or AP approves it, two people release it in the bank portal, and payments go out by check, ACH, wire, instant payment or virtual card. Stalls: a weekly or twice-monthly run can add up to two weeks, whatever happened upstream.
Remittance. The supplier is told which invoices the payment covers: a check stub, ACH addenda, an email, a portal. To AP, the invoice is now "paid".
Reconciliation. The payment clears, the bank statement is matched to AP's payments, and year-end tax reporting runs off the totals.
On timing: APQC's median from invoice receipt to payment is about 15 days, and top performers take about half that. A second APQC measure stops at "approved and scheduled": under three days for the top quarter, a week or more for the bottom, which is why the bottom misses 10-day discounts. So before comparing two "cycle times" I'd ask where each one starts and stops.
Ways to pay a supplier, compared
Rail
Cost to the buyer
Speed
Reversible?
Remittance it carries
What the supplier pays
Fraud exposure
Best for
Check
A few dollars, plus postage and Positive Pay fees
Mail and clearing days; the buyer keeps the cash meanwhile
Stop payment until cashed; Positive Pay can reject an altered item
The paper stub
A dollar or two to deposit, plus lockbox fees and float
Most targeted: mail theft, washing, alteration, counterfeits
Suppliers who insist on checks
ACH credit (CCD, CCD+, CTX)
Well under a dollar
Next day; same day up to $1M per payment
Effectively final; reversal only for duplicates or errors within 5 banking days, or a return request
CCD+: one 80-character field. CTX: up to 9,999 addenda records, a full X12 820
Well under a dollar, plus any "enhanced ACH" fee a network charges
Main target of fake bank-detail changes
The default for domestic suppliers
Wire (Fedwire)
Roughly $10-15
Minutes, operating hours
Final; a recall is only a request
Structured ISO 20022 since July 2025; portals often allow only short text
Roughly $10-15 to receive
The rail most targeted in BEC
Large, urgent or cross-border payments
RTP / FedNow
Bank-priced; FedNow charges banks a few cents
Seconds, 24/7; $10M network limits, banks may set lower
Final; return only by request
ISO 20022 remittance in the message
Typically nothing at network level
Irrevocable: gone in seconds
Urgent or deadline payments
Virtual card
About zero, plus a rebate (about 1.2% blended in the US federal card program, FY2025)
Supplier charges it when it processes the card; funded 1 to 2 days later
Card disputes; Visa straight-through limits them to duplicates, paid by other means and late presentment
With the card number by email or portal; Level 3 line items if sent
Roughly 2-3% in Visa interchange; on large straight-through payments, under 1% plus a flat fee of tens of dollars
Rarely targeted
Enrolled suppliers, small and mid-size tickets
Canadian EFT (AFT)
Per bank, unpublished
Next day
Unconfirmed; assume final and ask the bank
Limited; ISO 20022 planned, no date
Per bank, unpublished
Same bank-detail exposure as ACH
The default Canadian supplier payment
Lynx wire (Canada)
Bank-priced, unpublished
Real time, operating hours
Final
ISO 20022 since November 2025
Bank-priced, unpublished
Like a US wire
Large, urgent CAD payments
Check
Cost to the buyer
A few dollars, plus postage and Positive Pay fees
Speed
Mail and clearing days; the buyer keeps the cash meanwhile
Reversible?
Stop payment until cashed; Positive Pay can reject an altered item
Remittance it carries
The paper stub
What the supplier pays
A dollar or two to deposit, plus lockbox fees and float
Fraud exposure
Most targeted: mail theft, washing, alteration, counterfeits
Best for
Suppliers who insist on checks
ACH credit (CCD, CCD+, CTX)
Cost to the buyer
Well under a dollar
Speed
Next day; same day up to $1M per payment
Reversible?
Effectively final; reversal only for duplicates or errors within 5 banking days, or a return request
Remittance it carries
CCD+: one 80-character field. CTX: up to 9,999 addenda records, a full X12 820
What the supplier pays
Well under a dollar, plus any "enhanced ACH" fee a network charges
Fraud exposure
Main target of fake bank-detail changes
Best for
The default for domestic suppliers
Wire (Fedwire)
Cost to the buyer
Roughly $10-15
Speed
Minutes, operating hours
Reversible?
Final; a recall is only a request
Remittance it carries
Structured ISO 20022 since July 2025; portals often allow only short text
What the supplier pays
Roughly $10-15 to receive
Fraud exposure
The rail most targeted in BEC
Best for
Large, urgent or cross-border payments
RTP / FedNow
Cost to the buyer
Bank-priced; FedNow charges banks a few cents
Speed
Seconds, 24/7; $10M network limits, banks may set lower
Reversible?
Final; return only by request
Remittance it carries
ISO 20022 remittance in the message
What the supplier pays
Typically nothing at network level
Fraud exposure
Irrevocable: gone in seconds
Best for
Urgent or deadline payments
Virtual card
Cost to the buyer
About zero, plus a rebate (about 1.2% blended in the US federal card program, FY2025)
Speed
Supplier charges it when it processes the card; funded 1 to 2 days later
Reversible?
Card disputes; Visa straight-through limits them to duplicates, paid by other means and late presentment
Remittance it carries
With the card number by email or portal; Level 3 line items if sent
What the supplier pays
Roughly 2-3% in Visa interchange; on large straight-through payments, under 1% plus a flat fee of tens of dollars
Fraud exposure
Rarely targeted
Best for
Enrolled suppliers, small and mid-size tickets
Canadian EFT (AFT)
Cost to the buyer
Per bank, unpublished
Speed
Next day
Reversible?
Unconfirmed; assume final and ask the bank
Remittance it carries
Limited; ISO 20022 planned, no date
What the supplier pays
Per bank, unpublished
Fraud exposure
Same bank-detail exposure as ACH
Best for
The default Canadian supplier payment
Lynx wire (Canada)
Cost to the buyer
Bank-priced, unpublished
Speed
Real time, operating hours
Reversible?
Final
Remittance it carries
ISO 20022 since November 2025
What the supplier pays
Bank-priced, unpublished
Fraud exposure
Like a US wire
Best for
Large, urgent CAD payments
The check, ACH and wire costs are survey medians from 2021, and labor has risen since. I couldn't find Canadian per-item prices.
Why do checks survive? They were still about a quarter of US and Canadian business payments in 2025, and two-thirds of organizations paying by check in AFP's 2026 fraud survey said vendors require it. Buyers have reasons too: "reluctance to see funds leave their accounts instantly", and trouble confirming bank details. In Canada, about a fifth of commercial firms value being able to stop a cheque (2024 data). From inside AP a check looks cheap, stoppable and good for cash, and the cost and the fraud risk land somewhere else.
What the buyer gains and the supplier pays
Almost everything AP controls shows up as a supplier cost. Read this next to the order-to-cash guide.
Choice
Buyer (procure to pay)
Supplier (order to cash)
Who captures the spread
Virtual card interchange
Earns a rebate: about 1.2% in the US federal program; more in large public contracts
Pays roughly 1-3% plus a small fixed fee (Visa, April 2026); "accepting" means enrolling with that issuer
Issuer and AP network keep interchange minus the rebate; the acquirer keeps its markup
Payment timing and float
Pays at the end of terms; check mail and clearing add days; on a card, pays the issuer later still
DSO rises; a card pays fast but net of the fee
The buyer, or a provider holding funds "pending disbursement"
Rail choice
Picks the rail; a check is cheap to send and can be stopped
Bears lockbox and handling costs
Banks (lockbox, Positive Pay fees); an AP network if it routes
"Free" ACH
Free to the buyer
Pays a per-payment fee for "enhanced ACH" or faster funds on some networks
The AP network
Early-pay discount
Earns it (2/10 net 30 is about 37% a year)
Gives up margin for cash
The buyer, or the funder in supply chain finance
Remittance data
Sends it, or doesn't
Needs it to apply cash
Whoever owns the portal
Surcharge
Pays it or refuses it by contract
Recovers the card fee: credit only, up to 3% (Visa US) or 2.4% (Canada), banned in some states
Shifts the fee back to the buyer; the pending card settlement may widen this
Fraud loss on a push payment
Bears a BEC loss under UCC 4A
Invoice still open; relationship strained
The fraudster; banks are shielded if they followed agreed procedures
Duplicate payment
Overpays; recovers through audits
Holds a credit balance it must refund
Recovery-audit firms take a contingency share
Virtual card interchange
Buyer (procure to pay)
Earns a rebate: about 1.2% in the US federal program; more in large public contracts
Supplier (order to cash)
Pays roughly 1-3% plus a small fixed fee (Visa, April 2026); "accepting" means enrolling with that issuer
Who captures the spread
Issuer and AP network keep interchange minus the rebate; the acquirer keeps its markup
Payment timing and float
Buyer (procure to pay)
Pays at the end of terms; check mail and clearing add days; on a card, pays the issuer later still
Supplier (order to cash)
DSO rises; a card pays fast but net of the fee
Who captures the spread
The buyer, or a provider holding funds "pending disbursement"
Rail choice
Buyer (procure to pay)
Picks the rail; a check is cheap to send and can be stopped
Supplier (order to cash)
Bears lockbox and handling costs
Who captures the spread
Banks (lockbox, Positive Pay fees); an AP network if it routes
"Free" ACH
Buyer (procure to pay)
Free to the buyer
Supplier (order to cash)
Pays a per-payment fee for "enhanced ACH" or faster funds on some networks
Who captures the spread
The AP network
Early-pay discount
Buyer (procure to pay)
Earns it (2/10 net 30 is about 37% a year)
Supplier (order to cash)
Gives up margin for cash
Who captures the spread
The buyer, or the funder in supply chain finance
Remittance data
Buyer (procure to pay)
Sends it, or doesn't
Supplier (order to cash)
Needs it to apply cash
Who captures the spread
Whoever owns the portal
Surcharge
Buyer (procure to pay)
Pays it or refuses it by contract
Supplier (order to cash)
Recovers the card fee: credit only, up to 3% (Visa US) or 2.4% (Canada), banned in some states
Who captures the spread
Shifts the fee back to the buyer; the pending card settlement may widen this
Fraud loss on a push payment
Buyer (procure to pay)
Bears a BEC loss under UCC 4A
Supplier (order to cash)
Invoice still open; relationship strained
Who captures the spread
The fraudster; banks are shielded if they followed agreed procedures
Duplicate payment
Buyer (procure to pay)
Overpays; recovers through audits
Supplier (order to cash)
Holds a credit balance it must refund
Who captures the spread
Recovery-audit firms take a contingency share
Row by row, the buyer's best deal is the supplier's worst, and an AP fintech's revenue often sits in the gap between them.