Effortless Payments with H2H Integration
Automate vendor payments and customer receipts with direct ERP-to-bank connectivity—no manual work, no errors.
Fully automated & secure | ISO20022 PAIN & MT940 compliant | Real-time reconciliation
Host-to-Host (H2H) Bank Integration
Ports and Terminals, basically, businesses handling shipping and cargo need to pay their vendors (service providers) and also receive payments from customers. To make this process smooth and automated, banks provide a direct connection between the company’s ERP system and the bank’s system. This is called Host-to-Host (H2H) integration.
Workflow:
Paying Vendors (Outgoing Payments)
- The company’s finance team creates a bulk payment batch in the ERP (accounting software).
- This batch is sent securely to the bank in a standard format called ISO20022 PAIN (Payment Initiation)—PAIN 1, 2, or 3.
- The bank processes the payments and pays the vendors automatically.
- No one has to manually enter payment details or approve each transaction—it’s all automated.
Receiving Payments (Incoming Transactions)
- When customers pay the company, the bank sends back a statement to the ERP.
- This statement follows another ISO standard called MT940.
- The ERP automatically updates the accounts, matching payments with invoices (bank reconciliation).
- This helps finance teams track who has paid and who hasn’t—without manual work.
Workflow:
✅ Saves time – No need for manual data entry.
✅ Reduces errors – No risk of typing wrong payment details.
✅ More security – Transactions are encrypted and automated.
✅ Better cash flow tracking – The company knows exactly what payments are in and out.
Basically, it’s like setting up auto-pay and auto-reconciliation between your ERP and the bank—so finance teams don’t have to manually handle every transaction.
You can easily get started with Envecon’s Host to Host Bank Integration
Frequently Asked Questions
What is Host-to-Host (H2H) Bank Integration?
H2H integration is a direct connection between a company’s ERP system and its bank to automate vendor payments and customer receipts without manual intervention.
How does H2H Bank Integration work?
H2H integration allows businesses to:
- Send bulk payments to vendors securely via ISO20022 PAIN files.
- Receive bank statements in MT940 format for automated reconciliation in the ERP.
What are the benefits of implementing H2H integration?
- Saves time – Eliminates manual payment processing and reconciliation.
- Reduces errors – No risk of incorrect payment details or duplication.
- Enhances security – Transactions are encrypted and automated.
- Improves cash flow visibility – Real-time tracking of payments and receipts.
What file formats are used in H2H integration?
- PAIN (Payment Initiation) – Used for sending bulk payments to banks.
- MT940 – Used for receiving bank statements and automating reconciliation.
Can H2H integration work with any ERP system?
Yes, Envecon’s H2H solution is compatible with major ERP systems, including IFS, SAP, Dynamics 365, and Oracle.
Is H2H integration secure?
Absolutely. H2H uses encrypted and secure data exchange protocols to ensure transactions remain protected.
How does H2H integration improve bank reconciliation?
When customers make payments, the bank sends transaction details in MT940 format, which the ERP automatically matches with invoices—eliminating manual reconciliation.
What industries benefit from H2H integration?
H2H is ideal for businesses handling high transaction volumes, including:
- Ports & Terminals
- Manufacturing & Distribution
- Retail & E-commerce
- Large Enterprises & Multinational Businesses
How can I get started with Envecon’s H2H Bank Integration?
You can reach out to Envecon for a consultation, where our experts will assess your specific needs, seamlessly integrate the solution with your ERP, and ensure a smooth transition. Get started by filling out the consultation form.
