In this section, we explain how AP payments work at BILL. This includes funding payment methods, and delivery options, timing, and status tracking.

Flow of funds with BILL AP payments

At BILL, each AP payment consists of two components.

For example, you pay a vendor using funds from your bank account (Funding), and the vendor receives the payment with a paper check (Disbursement).

BILL typically operates on a good funds model.

1. BILL gets funds from your specified funding payment source, and
2. When BILL receives the funds, BILL starts moving funds to the vendor using the given disbursement method.

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The flows for accelerated AP payments may be different

See AP payment acceleration options for more information.

AP payment funding methods

You can set your BILL funding payment method as a US-based bank account, credit card, or debit card.

Bank account

A US-based bank account is a BILL funding payment method. There is no limit to the number of bank accounts you can add.

You can add an organization bank with the Add funding Element (automatically with Plaid or manually) or with the Create a bank account API endpoint.

NOTE: Only the user who added the account can complete verification.

NOTE: The user that manually added a bank account must be the one to complete verification.

Important notes about bank accounts

Pay by card

Credit card and debit cards are BILL funding payment method. You can fund vendor payments with a credit card or debit card even if the vendor does not accept card payments.

BILL processes a card payment with your card provider and then disburses the vendor via check, ACH, or virtual card.

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BILL does not set any additional temporary authorizations

When you pay by card, BILL authorizes only the payment & transaction fees. BILL does not set any authorization more than the payment amount.

Pay by card benefits

Important notes about pay by card

• Transaction fees: You will pay an industry-standard transaction fee for each transaction (usually ~2.9%).
• Compliance: Some card providers do not allow payments to specific vendor industries. When this is the case you will be required to provide the vendor industry prior to submitting the payment.

AP payment disbursement methods

BILL supports multiple ways to deliver payments to vendors. To know more about pricing for each delivery method, see BILL Pricing for more information.

Check

You can pay private vendors via paper check. BILL prints and mails the check on your behalf. The check includes your contact info, account number, and invoice number to help the vendor identify the payment.

Key features

• Security: Checks are written off a BILL account, keeping your bank details private.
• Expiration: Checks expire on the 91st day after issue. Expired checks are automatically voided, and funds are returned to you. Users with view payment permissions receive an email notification when this occurs.
• Reconciliation: BILL makes a single debit from your account for all payments processed on a day, simplifying reconciliation. You do not need to match individual check numbers.

Restrictions

• Pay To field: 60 character limit.
• Invoice Number field: 20 character limit (printed on the check, stub, and confirmation email). If the invoice number exceeds 20 characters, BILL prints the last 20 characters.
• Paper checks can only be issued to US vendors.

Important considerations

• Tracking: Checks are sent via USPS First Class mail and do not have tracking numbers.
• Limits: Maximum check amount is $99,999,999.99.
• Images: You can view images of the front and back of cashed checks once they clear. Leverage Get check image data API gather the check image or the Payments Element.

ACH (ePayment)

You can make ACH payments to private and public vendors.

• Private vendors: You manage their ACH information.
• Public vendors: The vendor manages their own bank information.

Process

1. Payment initiation: On the processing date, BILL will debit your account and send a payment notification email to the vendor, which will include remittance information as well as an estimated payment arrival date.
2. Processing and delivery: BILL will wait 2–3 days for the settlement of the debit and once BILL receives your funds, will credit your vendor’s bank account.

Benefits

• Cost: Flat fees for standard ACH transactions (unlike percentage-based fees on other platforms).
• Speed: Average ACH processing time is 2–5 days. Same day and next day ACH options are available to accelerate funding. See Acceleration options for more information.

Important considerations

• Private vendor bank verification: After manually adding a private vendor’s bank info, BILL posts a test deposit within 1–2 business days to perform verification on their account. If a payment is sent to the vendor during this verification period, the payee may experience a 1-2 day delay in delivery until BILL verifies the account.

Virtual card

Virtual cards are a free, easy, and fast way to make payments with confidence. If a vendor accepts virtual cards, BILL sends them a single-use, 16-digit Mastercard or Visa number for the specific payment amount that they can process just like a credit card.

Benefits

• Free: You pay no transaction fees
• Fast: Delivered to the vendor the same day or next business day
• Easy reconciliation: Includes rich remittance info (invoice numbers, customer details) to make reconciliation easy for you and your vendors

Process

1. Issuance: BILL sends the virtual card using the delivery method specified by the vendor (usually via email).
2. Processing: The vendor will process the 16-digit card number in their merchant processing system.
3. Expiration: Cards expire 20 days from the issue date. Unprocessed cards are voided, and the payment is reissued as a check or ePayment (whichever payment method the vendor has before opting into virtual card).

Important considerations

• Single use: Virtual cards are single use for the full amount of the bill/payable. That said, there is an ability for your vendor to process for less than the full amount. In the event this occurs, the payment's status will reflect accordingly. The vendor has until card expiration to process the card for the full amount. Any amount remaining on the card at expiration (full or partial) will be voided and returned to the payer
• Vendor fees: While BILL does not charge fees for payees to send virtual cards or for vendors to receive, the vendor’s merchant card processor may charge card processing fees however this would apply to any card payment they process from their customers, not just from BILL customers.
• Vendor enrollment in Virtual Card: As a payer, you don’t need to do anything to opt a vendor into virtual card. BILL has a robust network of virtual card vendors and will send a virtual card if we know your private or public vendor accepts.

International payments

BILL supports payments in over 100 currencies to 130+ countries. Compared to your bank, BILL is a more cost-effective way to make international payments and by paying with BILL you can integrate international payments seamlessly into your existing accounts payable workflow.

Configuration options

When creating an international vendor, you define the Bill Currency and Payment Currency.

Delivery methods

Local transfer

• Local transfer allows for faster payment delivery, upfront exchange rates, fewer errors, and easier reconciliation.
• Local transfer payments can be delivered up to 4 days faster than wire transfers via BILL (local currency only).
• Availability depends on the recipient’s country & payment limit threshold. If available, BILL will default the payment to local transfer.

Wire transfer

• Wire transfers are delivered via the SWIFT network or through intermediary banks.
• Available to send in more currencies than local transfer (USD & local currency).
• Payment delivery timing depends on the recipient’s country.
• Important considerations:
  • Available funding methods: International payments can be funded via bank account or credit / debit card. If using a credit / debit card, only Visa, Mastercard, and Discover are available.
  • BILL Network: The BILL network extends to international vendors as well. Currently BILL has network support in many countries and this list continues to grow. See Network-supported countries for more information.

Payment timing

When you schedule a payment, the earliest process date you can select is the next banking day. The system automatically pushes process dates to the next available banking day if you select a weekend or bank holiday. Future dated payments are supported as well.

Acceleration options

BILL does offers ways to speed up payment delivery when needed:

• Acceleration on BILL’s behalf: Based on internal risk rules and the payment’s specific details, BILL will choose to accelerate the payment in order to benefit both the payer and receiver at no additional cost. When payments are accelerated, they will be delivered in 2 business days vs the regular 3-4+. Any disbursement method is eligible to be accelerated on BILL’s behalf.
• Payer choice: You choose Fast Check or Fast ACH at time of scheduling for an additional fee as follows:

• Vendor choice: Vendor accepts an email offer for instant transfer.

If a payment fails due to insufficient funds (NSF) after BILL has accelerated payment to the vendor:

1. Payment status changes to FUNDING_FAILED_ACTION_NEEDED.
2. You will receive an email from BILL outlining next steps to resolve.
3. If unresolved, BILL attempts a re-debit, reverses the payment, or disables money movement.

Cancels and voids

Understand the difference between canceling and voiding a payment.

Cancel (No money movement)

• Status: Can only be done when payment is SCHEDULED
• Impact: No funds have been deducted

Void (Money movement started)

• Status: Can be done after processing but before funds are sent to the vendor.
• Check/Virtual Card: You can void until the Delivered status (before the check is cashed or card is processed).
• ACH/RPPS/Wallet: Cannot be voided once funds enter a sent state as funds have already begun moving to the end vendor (Sent status).

If a request is sent to cancel or void a payment and the payment status is too far along, BILL’s API will reject the request and return an error.

Core payment status values

See Single status payment values for the complete list of payment status values different stages of your payment lifecycle.

Developer implementation details

This section is for developer integration.

Bank account management

• Add bank account: Use the API (POST /v3/funding-accounts/banks).
• Verify bank account: Use the API (POST /v3/funding-accounts/banks/bankAccountId/verify) to confirm trial deposits.
• Element options: Use the Add funding Element and Manage funding Element to securely add (Plaid / Manual / Card), verify, and manage bank accounts.

Managing payments

• Cancel payment: Use the API (POST /v3/payments/paymentId/cancel) to cancel a scheduled payment before funds are deducted.
• Void payment: Use the API (POST /v3/payments/paymentId/void) to void a payment after processing but before funds are sent.
• Element option: Use the Payments Element to manage payments.

Check images

• Retrieve images: Use the API (GET /v3/payments/paymentId/check-image) to gather check images once the status is CLEARED. BILL attempts to retrieve images every 30 minutes.
• Element option: Use the Payments Element to view check images.

Vendor setup (Domestic and International)

• Create vendor: Use the API (POST /v3/vendors) with domestic or international fields.
• Element option: Use the Vendor setup Element to add domestic or international vendors.

Payment status reporting

• Best practice: Use real-time calls to the BILL Payments API (GET /v3/payments/paymentId) or the Payments Element for the most up-to-date status.
• Webhooks warning: Some statuses are temporary. For example, Virtual Cards move from Sent to Delivered instantly, so you may only receive the Delivered webhook.