There are many challenges to running a business, but suffering from accounts payable inefficiencies should not be one of them. Businesses not currently using electronic payments are discovering and adopting ePayment options as a way to better manage and monitor payments, while also generating income. These solutions can eliminate slow and costly paper-based payment procedures.
Virtual card payments are single-use or vendor-specific account numbers that are sent to your suppliers through the credit card network. They’re being used by many types of organizations as an effective way to pay invoices for professional services, inventory, and operating goods and services.
Traditionally, businesses have had a limited number of payment products to consider in developing their AP processes, such as paper check, wire transfers, ACH (Automated Clearing House) transactions and plastic purchasing cards. Each of these payment methods has limitations for tracking, settlement times, fees, and data availability. Virtual payments via commercial cards are a more comprehensive payment tool, which can support strong reporting capabilities, working capital improvement, and the elimination of process-heavy and slower paper checks.
Benefits of virtual commercial cards
The benefits of using virtual commercial cards include:
- Increased working capital.
- Greater efficiency compared to traditional methods.
- The opportunity to settle payments with suppliers on terms you control.
- Simple integration into your current system.
- The ability to initiate business- to-business payments as you do today. Only the payment method changes.
- A free solution with no setup cost or recurring fees.
Another big benefit of virtual payments using commercial cards is that with every transaction, you can earn cash rebates and rewards for your business like traditional commercial credit cards. Introducing virtual commercial cards also won’t require a change to your current approval process, and you don’t have to replace all traditional payment methods. With virtual commercial cards, you simply submit payment instructions online, through an automated file process or via a web service. Payment is then sent to suppliers securely and provides complete remittance information. You can then monitor your payments with automated reconciliation and reporting capabilities.
Making virtual commercial cards a part of your payment mix will enhance what you’re already doing today, but with increased efficiency. You’ll realize the benefits even if you convert just a small portion of your payments.