Order-to-Pay Banking: What kind of extortion is this?

Another “tool” for banks to get paid on both sides of a commercial transaction, the Order-to-Pay process sets a new scheme in motion.

a) Sell corporations on the idea that the bank will manage your supplier payments and provide liquidity to pay your bills so corporations don’t have to worry their pretty little heads on 24-hour temporary loans if funds are not there.

b) Have corporations force their suppliers to comply with Order-to-Pay so that the banking industry -in general- can extort extract funds on both sides of a commercial transaction between buyer and seller.

c) Entice corporate suppliers to sign-up with promises to pay in 15 days rather than the recent shift to 60-day terms for payables. An incredible inducement to cause a company to sign-up.

d) Oh, by the way, if you are unable to accept credit card payments direct to an account, sign here for the ability to do so and pay 3% for receiving your money that you billed the company for. Giving banks 3% of every invoice you issue to the BIG BOYS, what kind of deal is that?

e) Oh by the way, if you don’t comply with Order-to-Pay then you won’t get paid for 60-days. Period. No matter what.

And, of course, the whole thing is too good be true. We know, don’t we, that the 15 days will later shift to 21 days and then to 30 days and finally it will be back to 60 day terms for payment. Nobody wants to honor 30-day terms in contracts anymore. Why in the world would banks give you money in 15 days unless they expected to extract money on both sides of that commercial transaction sooner?

The banks are gaming the system with large corporations. You, the consumer, the small business,  will pay the BIG BOYS upon invoice (immediately) with credit cards while the BIG BOYS will eventually pay the company’s suppliers in 60 days. Wrestling the time element of money away from business and into banks is literally worth a fortune. It is insidious and breaks the buyer-seller relationship into buyer-broker-seller.

The money changers are back in the financial temple….Do you have your mark of the beast yet?