Virtual credit card payment solutions are an emerging trend in the B2B space. There’s continuing pressure on procurement and accounts payable to improve processes and “do more with less”. Virtual payments provide an avenue to not only help accounts payable streamline processes, but also generate cash rebates simply from paying everyday bills.
A virtual payment program enables a company to pay invoices via a ‘virtual’ credit card. Doing so has a variety of benefits:
- Greater control over payments by establishing exact transaction amounts and controls over expiration dates
- Automation of payment processing though electronic file request and delivery of card numbers and remittance information
- Simplification of reconciliations through enhanced payment transaction detail
- Alignment with existing processes in the accounts payable department
- Cash rebates on amounts paid through virtual payments
Here is a good video overview on how virtual credit cards work from one of the biggest vendors in the space – Comdata.
If you are interested in exploring exactly how virtual payments can benefit your organization, email me at firstname.lastname@example.org. Our team is currently working on some very exciting projects around virtual payments – I’d love to share what we are learning.
Author: Tom Rogers
Tom is the founder and CEO of Vendor Centric, he has been a trusted advisor to nonprofit organizations for 30 years, with a focus on helping them align the right people, processes and systems to mitigate third-party risk and drive more value from third-party contracts and relationships.