Purchasing cards are prevalent in the B2B payment world because they are convenient and they offer cash-back rebates. They are used by many companies despite there being another, better and more secure option. Because purchasing cards have become somewhat the standard for credit payments, the risks and adverse affects of have been disregarded.
But they shouldn't be.
Virtual cards have been available for use for some time, and the security and rebates they offer far outweigh the perks of using a purchasing card for issuing Accounts Payable payments.
According to the NAPCP, here is the positive aspect of using a purchasing card for PAYERS:
- Handling and mailing cost reduction.
But, MOST of the PROS for P-Cards are on the PAYEE side of the transaction:
- Electronically deposited funds.
- Faster receipt of payments and improved cash flow.
- Increased sales, as many organizations solicit only suppliers that accept P-Cards as payment.
As you can see, most of these positives, are for the PAYEE and not the PAYER. In addition, there is the impression that using a purchasing card is as SAFE for PAYERS as the alternative, virtual cards.