How payment processing in StrongRoom/AvidXChange works:
In addition to the below explanation, AvidXChange has provided this presentation.
The CAM division of Westward360 uses "global vendors" in Buildium / Strongroom. This means that the vendors in Strongroom are common for all W360 customers - there is a single vendor record for each vendor we have in Buildium, and that vendor is available to be assigned to invoices for all 500+ properties we manage.
The first time we approve a payment to a vendor on behalf of any of our properties (i.e., the first time the invoice is "released for payment" by the assigned accountant, after verifying availability of funds), the payment processing arm of Strongroom (called AvidXChange) tries to contact the vendor by e-mail and by phone. If they reach the vendor, they ask the vendor to select their preferred payment method. Vendors may choose from the following payment methods:
- "Virtual credit card" (VCC). This is a one-time credit card number that processes just like a credit card from the vendor's standpoint, but is not actually a credit card; rather, AvidXChange pulls the funds out of the Association's bank account and puts them in an AvidXChange clearing account, and the virtual credit card pulls the funds out of that clearing account to pay the vendor. The only fee charged is whatever fee the vendor's merchant charges them for receiving credit card payments; there is no additional fee charged by AvidXChange.
- AvidPay Direct. This is similar to ACH or "e-Check" payments, in that the vendor only needs to provide AvidXChange with bank account information (routing number and account number) and a signed form authorizing AvidXChange to make payments. AvidXChange charges a $1.00 fee + a 1.55% transaction fee for any payments under $10,000 or 1.05% for any payments betwen $10,000 and $25,000. The maximum fee for any transaction is $262.50 (1.05% x $25,000), so any transactions over $25,000 carry a flat fee of $262.50.
- AvidPay HOA Check. In this case, AvidXChange issues a check using the Association's bank account number for payment by mail. The check is mailed out within 24 hours of "final release" of the invoice (which happens as soon as the W360 accountant verifies funds availability). Like any other check, the funds are pulled from the Association's bank account only when the check clears.
Please note that if we cancel a check, we need to void it in Strongroom AND void it in Buildium - it is not automatically voided in Buildium.
If AvidXChange cannot reach the vendor within 7 days of the invoice being approved for payment, they default to payment by check. However, they continue to try to contact the vendor for several weeks after that. Until they actually make contact with the vendor and verify payment preference, the vendor could continue to receive phone calls and/or emails.
For any vendor who selects "check" as their payment preference, AvidXChange puts them on a schedule and reaches out again every 6 months to verify that payment by check is still their preference. However, there is no additional delay associated with the process of re-contacting the vendor.
Given this, there are three possible reasons a vendor might be contacted multiple times to verify payment preference:
- The vendor didn't respond to earlier inquiries.
- We had duplicate vendor records in Buildium. In this case, different vendor records may have been selected for different invoices, and AvidXChange may not have understood them as duplicates.
- The vendor selected payment by check, but 6 months have passed since AvidXChange verified that payment preference.
Invoices are submitted to Strongroom through email@example.com or by mail through this address -
P.O. Box 4579, Dept. 246
Houston, TX 77210-4579