First Data Launches Online Freight Payment System for Shipping Industry
First Data has launched PayCargo, a global online freight payment system for the maritime shipping industry. The PayCargo system is an electronic invoice presentment and payment (EIPP) tool that helps reduce the cost of approving and disputing payments. It also helps prevent expensive demurrage and storage charges that often result from inefficient payment processes and procedures.
According to Aberdeen Group, companies pay an average of US$18 to process an invoice, and some companies pay US$40 or more. Disputes can cost up to an additional US$15 in personnel expenses due to ongoing long-distance phone calls, e-mails, and fax charges between the shipper and carrier to approve, question, and dispute payments and deal with last minute exceptions.
Econocaribe Consolidators, a large non-vessel operating common carrier company, has already signed an agreement with PayCargo after seeing initial success with a pilot project. Econocaribe’s president John Abisch said: “Disputes are a major issue in this industry. PayCargo gives people on both sides of a transaction insight into the billing so issues can be addressed and payment can be made efficiently.”