Turn Your Accounts Payable Function Into a Profit Center!
It's a fact that U.S. businesses still, on average, pay 70% of their Accounts Payable invoices by check! And, checks are the most expensive way to pay suppliers. Of course, there’s the obvious costs of: the check stock, the envelopes, and the postage, but then there’s also the time spent: printing, signing, stuffing, and mailing the checks, then there’s reconciliation and bank fees.
ACH, on the other is less expensive than processing checks, but there is still a cost.
In both cases there are other downsides regarding; remittance advice, reconciliation, cash-flow, security and A/P department productivity
Enter Virtual Payments...
First, the best way to understand Virtual Payments is to look inside your own wallet. You probably have some sort of reward credit card in there - most Americans do. You spend money on that card and you receive something; points, mileage and even cash-back.
So, take the rebate concept and apply it to a vehicle strictly for businesses that is akin to your rewards card, but there is no plastic. As a matter of fact, the sixteen-digit number on this "virtual credit card" rotates "randomly" on every transaction, and is likely not to repeat for a long, long time. This creates a very high level of security as any fraud is simply limited to a single transaction at most.
Then, think about the number of checks that will not need to be processed, saving (based on recent studies) $6 - $10/check, if payments are made this way.
And, this payment vehicle produces a rebate of 1 - 1 1/2% on every transaction, creating up to $150,000 for every $10 million of A/P spend!
But wait, there's more...we know that not every vendor you have will want to take your credit card, virtual or not, so the system can actually create a payment file that will pay vendors, with a click of the mouse, in Virtual Payments, checks, ACH, foreign exchange and even private networks.
All this is providing incredible transparency into the settlement staus of all of your payments!
Here is the best part - the setup and light integration are free, and there is never a cost to use this platform, except for a very nominal charge to process checks...far outweighed by the revenue generating potential of this program, and far less than processing checks yourself.
Who can benefit from Virtual Payments?: hotels, retailers, manufacturers, sports teams, charities, schools...any entity that pays a good deal of money each month in A/P.
If your A/P department is writing hundreds of checks each month, reach out to us and we'll fill you in on all the details. You could be up and running in as little as two weeks with four phone calls.