Does your business hire independent carriers? Do you know the best way to pay for the services? This is a very common practice in the logistics industry due to the ease of hiring drivers. However, there are rules regarding the form of remuneration for this activity, including Electronic Freight Payment (EFP).
We can view the PEF as a reliable solution to ensure that all legal requirements are met. Due to its importance for the operation, we have created this content so that you can clarify your doubts and know the main advantages.
Read on to learn more about this method!
What is electronic shipping payment?
Hiring independent drivers is a different relationship than the professional who works as CLT. This makes the remuneration for the provision of services to be performed in a differentiated manner.
For many years, the most common practice was to pay in cash or by means of a freight charter that covered freight charges and fees. However, today we have more effective and safer alternatives. This is the case with electronic freight payment, which is an exclusive system for these professionals.
The payment flow follows these steps:
- the contractor creates a payment order for the amount of the service;
- the order is sent to the payment company authorized by the National Agency for Land Transport (ANTT);
- the intermediary company issues the identification code of the transport operation (CIOT) and receives the payment;
- the amount is transferred to the hired driver by bank transfer or a lived-in card for withdrawal.
The creation of the PEF represented a positive change in the working relationship between companies and self-employed drivers, in addition to being a less bureaucratic alternative.
What are the main advantages of the PEF?
In addition to understanding how the practice works, it is important to know what are the main benefits that generate productive impacts for both the independent driver and the contracting company.
Allows the driver’s income to be calculated
In this way, there is an electronic and reliable record of the amounts received by the driver for the provision of services. This is an important advantage, as self-employed professionals, for example, find it difficult to prove their income and access credit services.
Increase road safety
Once the need to carry large amounts of cash was eliminated, the driver was no longer the target of criminal action. In addition, this transaction becomes simpler and more flexible when payment is made electronically.
Improves the relationship with the company
The electronic medium is one of the main attributes of the PEF, as it allows the transparency of payments. As the processing is automated, there is less incidence of errors, inconsistencies in values and attempted fraud.
Ready! You now know how electronic freight payment works in practice and you know how your business can benefit from this method. It is worth joining the evolution of the logistics operation and relying on safer and more efficient solutions.
This article is only an introduction to the subject of payment methods. If you want to learn more, just visit our article on the risks of mismanagement of payments and how to optimize it. Enjoy!