ELECTRONIC CHECKS OVERVIEW OF GVSU 4 4 yea ear publ ublic U Uni - - PowerPoint PPT Presentation

ELECTRONIC CHECKS

OVERVIEW OF GVSU

4 4 yea ear publ ublic U Uni niver ersity

• 1 of 15 in state of Michigan
• 1 of 12 in the country in the public liberal arts education space
• Tuition is in the lower half of all Michigan public universities
• Receives the lowest level of state funding of the 15 universities

Grand nd V Valley’s ef efficient o

• per

erations have been e been no noted ed i in n Michigan a and i in n nation

• nal r

l rankings. Grand nd V Valley h has a an eco n econo nomic i impact in n the e Wes est Mi Mich chigan reg egion o

• f more

e than $730 m $730 million d dol

• llars.

Grand nd V Valley w was na named ed o

• ne

ne of the e co count untry’s g greenes eenest uni univer ersities es by Sier erra Club. ub.

OVERVIEW OF GVSU

GVSU w was as founde ded in in 1960 Curre rrent E ERP ( (Banner) r) s system w was i imple lemented i in 2005

• Investment i

initially w lly was $ $7.4 milli llion

• n
• Sh

Shar ares o

• ne dat

datab abase b between st students an and d vendo dors

• Ban

Banner is o is only t the se second E ERP sy system in in our h his istory

OVERVIEW OF GVSU

5, 5,500 v 500 ven endors

• 90,000 invoices in Fiscal year 12/13
• 30,130 (53%) were ACH payments
• 27,072 (47%) were check payments
• Added 664 new vendors in the last fiscal year
• 177 (27%) signed up for ACH payments
• 72 (9%) signed up for VerifyValid checks

30, 30,448 p 48 purch chasing car ard d pay ayments

OVERVIEW OF GVSU

24, 4,500 s 500 students

• 75,000 payments in fiscal year 12/13 for over $118 million
• 42% with electronic checks
• 30% with credit cards
• 21% with paper checks
• 5% with cash
• 2% with wires
• Issued 50,000 Financial Aid refund checks
• 61% with ACH
• 39% with paper checks

OVERVIEW OF GVSU

2, 2,400 400 full & l & part t time e emplo loyees 2, 2,200 200 st stude dent emplo loyees

• 115,207 (86%) ACH payments
• 18,904 (14%) paper checks

Ev Even n th thoug ugh G GVSU have e been en using g AC ACH since e 1996, we still ill have not elimi minated ed paper chec

• ecks. Adding new forms

ms of elec ectronic paymen ment should d help r redu duce t that numb mber er.

CASE STUDY EXPERIENCE WITH ELECTRONIC CHECK

Wh Why d did id GVSU e U even en cons nsid ider er a a chang ange? e?

• Improve efficiency
• Improve the sustainability pledge
• Reduce the time of printing and delivery
• Reduce the cost of printing and postage
• Reduce the chance of fraud
• Reduce the number of phone calls about validity of checks
• Reduce the number of paper checks
• Complete the electronic invoice process system

CASE STUDY EXPERIENCE WITH ELECTRONIC CHECK

How d doe

• es

s VerifyVali lid’ d’s el elec ectronic nic c chec eck work?

• Vendor is set up with a payment email in our ERP system
• Payments are created in our accounting system based on bank code
• Process the VerifyValid bank code like our regular paper checks
• Create a file of payment information and remittance information
• Upload the file to VerifyValid
• Click one button to sign and send emails
• Payee receives a notification email
• Payee clicks the link to view a pdf that

at i is a a ch check with remittance data

• Payee either prints check for deposit or deposits directly into their

bank with remote deposit capture

CASE STUDY EXPERIENCE WITH ELECTRONIC CHECK

Impl plica cations for G GVSU a and d Vendo dors

• Reduces paper use – improves our green initiative
• Completes the ability to receive and pay invoices electronically
• No software implementation costs – just per item fees which are less than cost of

paper check

• Little IT investment
• Vendors recognize a check
• Vendors get paid faster – bigger economic impact with the same dollars
• Vendors can deposit with remote deposit capture same day as university creates

the check

CASE STUDY TAKE AWAYS

 Go Going e electronic requi uires t thought o

• n

n how it w will i impact systems a and nd pr processes  Decrease ses s costs  Decreases t time for

• r vendors t

to

• receive p

paym yment  Improves acce ccess t to data ta  Im Improves security y  Ban Banks p process r remai emains t the e sam ame

CASE STUDY TAKE AWAYS

 Little effort o

• n

n our ur pa part to convert v vend ndors t to t this type pe o

• f e

electronic check  No

• me

merchant f fees  Autom

• mates the receiving of
• f these payme

yments  Payer a and P Payee benefit

Why? y? IT IT IS IS J JUST A A CHEC ECK!