A payment model where the purchaser controls the timing and amount of funds transferred to a vendor is increasingly common. This approach empowers the buyer to authorize transactions based on pre-approved agreements or invoices. For example, a large corporation might utilize this method to pay suppliers only upon verification of goods received, directly debiting their own account to remit funds.
This payment strategy offers several advantages, including enhanced control over cash flow and improved reconciliation processes. It reduces the risk of unauthorized payments and allows for greater transparency in transactions. Historically, vendor-initiated payments dominated, but the rise of sophisticated payment platforms and the need for enhanced financial control have spurred adoption of this method.
