An analysis of the potential use of corporate trade payments by the Navy.

Abstract

Corporate Trade Payments (CTP's) are a recent development in electronic funds transfer (EFT) technology. Essentially they are a commercial payment system that replaces paper checks with electronic data which are transmitted via the automated clearing house system. This thesis analyzed the potential use of CTP's by the Navy for making vendor payments. The thesis reviewed EFT in general and CTP's in particular. It performed a cost comparison between checks and CTP's, and predicted whether using CTP's would be cost beneficial to the Navy. A survey of private sector companies was conducted to solicit primary market data about using CTP's. The respondents' data were statistically tested to identify possible vendor concerns and needs.