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U-M offers multiple supplier payment methods. Payment terms vary based on the payment method and applicable supplier agreement.
U-M’s standard supplier payment terms are Net 45, with payment by U-M-issued check. Alternate electronic payment methods are available through U-M’s banking partners and provide accelerated payment terms.
Availability of payment methods and associated terms may vary based on the supplier, agreement, and type of transaction.
Description
Standard Payment Terms and Check
Unless otherwise negotiated, U-M’s standard payment terms are Net 45. Payment is not due prior to forty-five (45) days from receipt of a valid invoice, subject to applicable purchase terms and conditions. The standard payment method is a U-M-issued check.
Accelerated Electronic Payment Programs
U-M offers several electronic payment programs through its banking partners, J.P. Morgan Chase and American Express. These programs eliminate paper check payments and provide accelerated payment terms.
Depending on the program and supplier configuration, payment may be delivered through a virtual account or deposited directly into the supplier’s designated bank account. Benefits may include improved cash flow, reduced check-processing effort, enhanced payment security, and simplified reconciliation.
Available programs include:
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J.P. Morgan Chase Virtual Payment Program – Offers accelerated payment to participating suppliers immediately following invoice approval. Payment delivery may vary based on the supplier’s enrollment and configuration, including virtual account payment or other electronic payment options.
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American Express Buyer Initiated Payment (BIP) – BIP provides accelerated electronic payment through American Express, with funds deposited directly into the supplier’s designated bank account.
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American Express vPay – vPay is a virtual payment solution through American Express that provides accelerated electronic payment using a virtual account.
U-M does not charge suppliers a fee to participate in these programs. Any supplier fees associated with accepting or processing a particular payment method are governed by the supplier’s agreement with its financial institution, merchant processor, or the applicable banking partner.
EFT/ACH
EFT/ACH may be available to suppliers with negotiated supplier agreements and may require deferred and/or discounted payment terms.
Wire Transfer
Wire transfer is available for select international payments. Any fees associated with the transfer are charged to the originating university unit.
Additional Information
Refer to the applicable U-M program endorsement letters for additional information and enrollment details regarding electronic payment programs.