Provider Insight

Don't forget to subscribe to the blog (no charge) to receive educational content!

Portions of the following content were featured within the November 3, 2014, blog post, Recast your ballot: Does BIP or SIP win your vote? In addition, learn why one bank opted out of Virtual Cards and obtain an end-users insight on the two primary types of ePayables.

ePayables: BIP vs. SIP

Recharged Education’s Lynn Larson asked Bora Payment Systems LLC (“Bora”) about their views of the two primary types of ePayables solutions: buyer-initiated payments (BIP) and supplier-initiated payments (SIP). The following content reflects their opinions. Bora is a business-to-business BIP solution provider, as described at the end of this page.

According to Bora, the “best” AP system is one that matches the needs of the buying organization (end-user).  When it comes to making AP payments, most end-users are interested in security, scalability and swift reconciliation. Because these payments are commonly linked to a pre-existing contractual arrangement between the parties (end-user and supplier), the system must deliver on that promise. That said, there are certain payer and payee attributes that lend themselves to a supplier-initiated payment (SIP) system. For example:

End-User (Payer) Profile for SIP

  • Less than $5 million in annual AP card spend
  • Many non-recurring payments to suppliers
  • Web-based and T&E purchases

Supplier (Payee) Profile for SIP

  • Often paid infrequently
  • Interchange is not key determinate of P-Card acceptance
  • Does not receive aggregated or high volume payments

When these two profiles exist, the “better” AP system for the end-user will be SIP. Conversely, different profiles make a buyer-initiated payment (BIP) solution a better solution for the end-user. Project scale alone can render any SIP solution unwieldy, all else held equal, since reconciliation capability decays rapidly in the face of an email based delivery system. As a generic guide, attributes that lend themselves to a BIP system include:

End-User (Payer) Profile for BIP

  • Greater than $3 million in annual AP card spend 
  • Recurring payments to the same suppliers
  • 10% to 20% of suppliers receive 80% to 90% of payments

Examples of end-users who benefit from BIP: healthcare/medical industry, universities, large corporations, small corporations with concentrated suppliers, and government agencies who want audit features.

Supplier (Payee) Profile for BIP

  • Receives at least $30,000 in annual AP payments
  • Not offering early payment terms already
  • Ideal if accepting card payments already

As Bora noted, BIP also uniquely provides suppliers with quantifiable reasons to participate: lower transactional cost, less AR effort and control over payment timing. Yet not all BIP systems are the same.

Bora’s Payer Direct Hub® is one option; the distinguishing features are listed in the table below.

Payer Direct Hub® (PDH)  

To learn more about the patented Payer Direct Hub  ®, visit:  .

To learn more about the patented Payer Direct Hub®, visit:

About Bora Payment Systems

Bora Payment Systems LLC, owns and operates the Payer Direct Hub® (PDH), a business-to-business Buyer-Initiated Payment service for purchase cards. PDH allows commercial card clients and resellers to pay invoices from a single website with minimal or no integration. The system reduces AP expense and boosts P-card revenue share for payers, while helping suppliers cut costs through reduced labor and precise control over interchange rate qualification. Payer Direct Hub® provides significant cost incentives for suppliers resistant to P-card transactions.