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Vendor Banking Change: Safeguards and Payment Hold Guidelines
March 12, 2025
Q. Is there an industry standard that suggests payments should be held for a certain number of days following a banking change for a vendor? This policy would supplement the 2nd verification process performed on all banking changes. E.g. When a vendor updates their banking, is it an appropriate safeguard to hold payment for 30 days to ensure the banking change was not fraudulent?
A.
(Answered by IOFM's third-party Vendor Master File expert)
There is no industry standard for holding payments…
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