Improve Business Cash Flow With e-Payments Using Commercial Cards
A business can benefit significantly with the integration of a commercial cards program into its electronic payments strategy. Besides improving processes, a business can experience lower payment fraud and reduced risk and improve customer experience.
Here is a list of benefits of making e-payments with commercial cards:
Better Cash Flow
You can manage Accounts Payable(AP) and Accounts Receivable(AR) more strategically by accepting payments by card. Commercial cards are designed to allow enterprises to make timely payments to suppliers while ensuring optimal management of working capital.
Related: A Brief Introduction to Electronic Payment Systems
Support for Overall Financial Strategy
It offers insight into a company’s progress, giving it ample information as to where its money is going and which strategic initiatives will work the best toward the accomplishment of the broader financial strategy. Rich, Detailed Transaction data like item description and quantity can be captured with card payments thus offering a goldmine of data to support extended financial plans of a company’s growth strategy.
Fraud Protection
A number of check fraud incidents have been reported from all over the world. In fact, check fraud is the biggest vulnerability for payment transactions, with 82% of enterprises becoming targets for fraud. On the contrary, according to a survey by Aberdeen Group, there were almost 82% fewer fraud incidents with the usage of p-cards (Purchasing Cards) to make e-payments.
An increase in card fraud was reported in 2013 by various financial professionals. However, it is expected that the implementation of commercial cards, with more secure microchip/PIN security, would help ensure reduction in card fraud in the U.S. Statistics reveal a reduction in card fraud by 26% in the UK from 2008 to 2013 following the implementation of EMV and other measures.
Streamlines Business Operations and Reduces Costs
The adoption of p-card programs as a substitute for manual processes eliminates the time-consuming purchase order process, while enabling automated payments and reconciliation. This frees up employee resources, helping shift the focus from tactical to strategic activities. Not only this, companies are able to redeploy or reduce staff and streamline business operations.
According to RPMG Research Corporation:
- There is a significant reduction in the procurement cycle by nine days with the use of p-cards while the report processing time and cost can come down by 44% with the implementation of T&E card programs.
- The purchase of p-cards can lower the cost of administration by $74 per transaction.
Related: Our No Obligation, Free Merchant Account Anaylsis could help lower your processing costs.
Improves Compliance
The use of commercial cards also helps businesses capture the data required for Sarbanes-Oxley compliance. In order to comply with Sarbanes-Oxley, organizations must publish “the scope and adequacy of the internal control structure and procedures for financial reporting.”
Today, an organization is expected to report regularly, provide easy access to data, detect and prevent fraud, standardize purchasing and payment processes, and take measures to reduce e-payment risk and monitor compliance by employees.
As consumers demand more flexible, safe, and secure payment options, commercial cards promise to change the payment landscape and make it more customer friendly.
Contact Us for more info on Purchasing Card Processing for Your Business. Or take us up on our FREE Merchant Account Analysis offer. We’ll analyze your merchant account rates and let you know how to Save! If you are ready, you may be able to Switch and Save!
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