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Often times, we see automation technology implemented in the same sequence as A/P processes. Areas such as document scanning, OCR, e-Invoicing, imaging, workflow and payment approval are addressed before payment execution. But did you know that payment execution
has the potential to fund other A/P automation efforts?
The latest trend among corporations when it comes to payment execution is to pay invoices electronically by card using virtual card technology. Adopting an electronic B2B payment strategy that takes advantage of highly secure virtual cards will enable your
company to reduce its A/P costs, streamline A/P processes, and generate revenue through card rebate programs.
Rebates from card payments can turn your A/P cost center into a revenue generator. Your company can earn rebates from check disbursements that are migrated to card payments. These rebates are based on a defined percentage of your total monthly spend and
are paid to you monthly. This contributes directly to your company’s cash flow. You can use these rebates to fund your A/P automation initiatives upstream. Using card rebates to offset the cost of additional automation makes the ROI in your business case even
stronger and more compelling!
What do you think of virtual cards? Do you use them? Do you have colleagues in other companies that use them?
@Mathew: Not sure what are Virtual Cards. I'm sure they're not the same as Corporate Cards that have been used by corporates to settle Travel & Entertainment expenses for a long time. In case virtual cards mean the same as p-Cards (Procurement Cards) issued
by banks and used by corporates for making payments for their direct and indirect materials, then the benefit analysis needs to factor in merchant fees attracted by p-Cards, which diminish the potential for ROI, if not undermine it altogether.
19 Mar 2009
05 Dec 2019
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06 Nov 2019
This post is from a series of posts in the group:
Payments systems visions, strategies, trends, pilots, forecasting, and planning for the short-, medium-, and far-term.