Virtual cards have been available for six years, but there is still a large percentage of corporations and mid-sized companies that have not incorporated the use of V-Cards into their AP model. However, the spread of awareness of how virtual cards benefit companies is generating a steady increase in usage.CFO magazine cites a study that states in 2013 18% percent of AP managers used virtual cards. According to an analyst from the same article, using virtual cards for AP is "- a good idea with a good value proposition".Companies may be holding back from using Virtual Cards may be that they do not understand the potential benefits involved. Find out below how virtual cards can benefit you, - from increasing efficiency to saving money.
Two Reasons Why Virtual Cards are Essential:
FOR PAYEES (VENDORS): No Paper Chasing - Virtual cards take less time as well as less paper. CFO of Fortessa Tableware Solutions, Jeff Smith, states that "...there is no check to receive or take to the bank, and you don’t have to worry about the payment getting lost, mishandled, or misplaced.” Therefore, with virtual cards, getting the payment to the bank is guaranteed.
As the PAYER you also gain the benefit of an enhanced relationship with the vendor who will know where they stand and who won't be calling looking for a payment.
FOR PAYERS: No Vendor Overcharging - Since virtual cards will only carry the exact amount you wish to pay, there is no chance for vendors to overdraft and misuse the card. Traditional credit cards provide no protection from this. Smith states that with credit cards “that’s an error that would get corrected down the road, but the virtual card prevents the error in the first place."
The Explosive Growth of Virtual Cards:
It seems that it is only a matter of time before awareness spreads from those early adopting companies who are already reaping the benefits of Virtual Cards, - to small and large companies alike. They save paper, money, and provide added security for your credit payments...not to mention that they earn cash rebates for each transaction and contribute to the PAYER company's bottom line.
In today's digital world, no one really uses checks regularly for their personal transactions. Ask anyone outside of the finance industry the last...
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