Efficiency of B2B bill payments in the U.S. : case checks and an organization in a foreign environment
Ali-Raatikainen, Anetta (2016)
Ali-Raatikainen, Anetta
Turun ammattikorkeakoulu
2016
All rights reserved
Julkaisun pysyvä osoite on
https://urn.fi/URN:NBN:fi:amk-2016062913417
https://urn.fi/URN:NBN:fi:amk-2016062913417
Tiivistelmä
This thesis focuses on the business-to-business (B2B) check payment process and outlines the most commonly used B2B bill payment methods, processes and systems in the United States of America (US). The purpose of this thesis is to provide information on American B2B payment instruments, from which especially a check is different from Finnish payment instruments, and hence describe how a finance office of a Finnish government organization X, where the staff is Finnish, has succeeded in integrating the U.S. modus operandis into its operational environment in the United States.
The theoretical framework of the research is based on the open systems theory, bill payment supply chain and literature reviews. The open systems theory studies an organization as an open system, which interacts with its environment and absorbs, acts and responds to external factors. The theory refers to an organization’s ability to identify, adjust and use knowledge from its external factors and subsystems. With the open system approach, organization X’s ability to recognize and apply new information and technologies is studied through the organization's specific and general environments. The supply chain approach is applied to the accounts payable (AP) process and the check payment process. Payment systems operate on the open loop model and also are studied from the supply chain perspective.
The general part explains the automated clearing house (ACH) network, which is the most important payment system in the United States regarding B2B payments. Furthermore, the payment instruments i.e. check, Bill Pay and ACH transfer are described, including the organizations and regulations behind them. The findings shall, with theoretical background, create a framework for Finnish organizations to understand the challenges generated by culturally and technologically different environmental factors and what the payment culture is like in the United States.
The study is based on a single case study, which is the result of observations that I made when I worked at the finance office of organization X in the United States. The applied part, my thoughts and knowledge, is a discussion of the theory. Therefore, the improvement suggestions for X’s current procedures are strongly based on my experience and own point of view.
The theoretical framework of the research is based on the open systems theory, bill payment supply chain and literature reviews. The open systems theory studies an organization as an open system, which interacts with its environment and absorbs, acts and responds to external factors. The theory refers to an organization’s ability to identify, adjust and use knowledge from its external factors and subsystems. With the open system approach, organization X’s ability to recognize and apply new information and technologies is studied through the organization's specific and general environments. The supply chain approach is applied to the accounts payable (AP) process and the check payment process. Payment systems operate on the open loop model and also are studied from the supply chain perspective.
The general part explains the automated clearing house (ACH) network, which is the most important payment system in the United States regarding B2B payments. Furthermore, the payment instruments i.e. check, Bill Pay and ACH transfer are described, including the organizations and regulations behind them. The findings shall, with theoretical background, create a framework for Finnish organizations to understand the challenges generated by culturally and technologically different environmental factors and what the payment culture is like in the United States.
The study is based on a single case study, which is the result of observations that I made when I worked at the finance office of organization X in the United States. The applied part, my thoughts and knowledge, is a discussion of the theory. Therefore, the improvement suggestions for X’s current procedures are strongly based on my experience and own point of view.