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Duplicate Payments: How Much is Your Company Losing? And How to Stop It

Written by ExpensePoint | Dec 12, 2025 1:03:22 AM

Duplicate payments are one of the most common yet overlooked sources of financial leakage inside organizations. Many leaders assume these errors start in accounts payable (AP), but a large portion actually comes from expense management, where manual submissions, inconsistent workflows, weak policy controls, and fragmented systems make duplicate charges easy to miss.

Research shows that duplicate payments aren’t rare exceptions; they’re a predictable outcome of manual processes. According to American Productivity & Quality Center (APQC) research, organizations see 0.8%–2% of total disbursements as duplicate or erroneous payments. The Institute of Finance and Management (IOFM) reports that companies may lose up to 1.5% of outgoing cash flow to duplicate payments alone. For mid-market and enterprise businesses, those numbers scale quickly.

What Are Duplicate Payments?

Duplicate payments occur when a company pays the same invoice or expense more than once. Common causes include:

  • Employees submitting the same receipt multiple times
  • Vendors issuing duplicate invoices
  • Manual data entry inconsistencies
  • Corporate card transactions entered again as reimbursable expenses
  • Spend tracked across disconnected systems

When AP, corporate card data, and employee expenses sit in separate tools, duplicate payments become nearly impossible to catch manually.

The True Cost of Duplicate Payments

1. Direct Financial Loss

Even small duplicate payment rates translate into larger losses.
Using industry benchmarks:

  • APQC: 0.8–2% of disbursements are duplicate or erroneous
  • IOFM: Up to 1.5% of outgoing cash flow lost to duplicate payments

For a company with $10M in annual spend, that could mean $80,000 to $200,000+ lost every year - much of it is completely avoidable.

2. Increased Fraud Exposure

Fraudsters know manual AP and expense workflows are vulnerable. Without protection, companies face:

  • Altered receipts
  • Duplicate submissions with slight changes
  • Small recurring charges that escape notice
  • Expense reimbursements layered on top of vendor invoices

IOFM notes that duplicate payments often stem from weak audit controls and siloed systems which are exactly the conditions that increase fraud exposure.

3. Operational Inefficiency

Each duplicate payment creates ripple effects:

  • AP and finance teams spend extra time reconciling discrepancies
  • Vendors issue credits or refunds that you must track
  • Month-end close slows down
  • Employees and managers spend more time resolving issues

4. Vendor Relationship Issues

Overpaying vendors can lead to:

  • Confusion about account balances or project spend
  • Delayed approvals for future invoices
  • Administrative back-and-forth
  • Loss of confidence in your financial operations

Why Duplicate Payments Aren’t Just an AP Problem

Traditional AP teams often get blamed for duplicate payments, but research and industry analysis show that expense management plays a major role.

Expense Systems Are Disconnected

Employees often submit expenses through:

  • Email
  • Paper receipts
  • Mobile apps
  • Corporate card portals
  • Manual spreadsheets

When you spread spending across multiple systems, you create blind spots where duplicate payments slip through unnoticed.

Manual Review Can’t Catch Most Duplicates

Even the best AP teams struggle to identify at scale:

  • Near-matching invoice numbers
  • Slightly modified expense details
  • Reused image files, receipts, or invoices

Without help from automation, your reviewers simply can’t see every pattern.

How to Prevent Duplicate Payments in Accounts Payable

The most effective organizations use automations, policies, and centralized workflows to prevent duplicate payments.

1. Adopt Automation

Automation tools (like ExpensePoint) use:

  • AI-based pattern detection
  • OCR-powered receipt and invoice scanning
  • Real-time duplicate alerts
  • Standardized approval workflows
  • Out-of-policy flagging and control

These capabilities dramatically reduce duplicate payment risk long before AP processes the payment.

2. Implement Duplicate Detection Technology

Effective duplicate detection systems identify:

  • Same vendor, date and same amount combinations
  • Duplicate receipt images
  • Duplicate invoices
  • Repeated corporate card transactions
  • Employee reimbursements that mirror vendor invoices
  • Match invoices and receipts to their respective credit card charges

These tools flag similarities even when details are slightly modified.

3. Centralize All Spend in One Platform

One of the biggest drivers of duplicate payments is fragmented spending tools.
Centralization prevents:

  • A team paying the same invoice twice
  • An employee expensing the same charge
  • A recurring subscription billed to a card and invoiced again

When you bring your expenses and card transactions into a single system, you restore full visibility.

4. Strengthen Policy Controls

Policies work best when they support automated controls. Examples include:

  • Requiring unique invoice numbers
  • Restricting manual edits to expense data
  • Mandating digital submission instead of paper copies
  • Adding approvals, policy stops, or explanations for high-risk categories
  • Setting clear reimbursement rules and timelines

With the right configuration, your system enforces these rules automatically.

5. Conduct Regular Spend Audits

Even with automation, regular interna; audits provide an extra safeguard. Audits help you catch:

  • Overlapping subscriptions
  • Vendor overbilling patterns
  • Out-of-pocket reimbursed items that also appear on corporate cards
  • Duplicate entries across departments
  • Reuse of similar invoices or receipts

What is the Double Entry for Accounts Payable?

Many finance teams ask about the correct accounting for AP processes.

The double entry for accounts payable is:

  • Debit: Expense (or asset)
  • Credit: Accounts Payable

If your team processes a duplicate payment, you double-record the expense. That overstates total expenses and creates reconciliation challenges later. Automated systems prevent duplicates from ever entering the ledger.

How ExpensePoint Eliminates Duplicate Payments

ExpensePoint helps organizations prevent duplicate payments through technology and workflow controls such as:

  • Real-time duplicate entries detection
  • AI-driven invoice, transaction and receipt reading
  • Integrated expense workflows
  • Fraud detection alerts for suspicious payments
  • Automated approvals to ensure compliance
  • Audit-ready reporting
  • Full visibility across employees, vendors, and departments

By eliminating manual processes and unifying expense data, ExpensePoint significantly reduces duplicate payments and minimizes financial risk.

Invest in Your Bottom Line

Duplicate payments may appear to be small errors, but they add up to major financial loss; often 1–2% of company spend, according to industry benchmarks.

By adopting automation, using duplicate detection technology, and centralizing expense data, organizations can fully prevent duplicate payments and protect their bottom line.

If your company is ready to eliminate duplicate payment risk and tighten financial controls, ExpensePoint provides the tools you need. Request your ExpensePoint demo today