So you're pretty sure you've examined all the electronic solutions for your organization's accounts payable and just haven't made the leap to virtual card-based payments. Or maybe you're not sure you even know what virtual cards are, but you're determined to improve the efficiency and efficacy of your AP process. Regardless of the camp you fall into, consider this: Thousands of organizations of all sizes, and tens of thousands of their suppliers, find virtual cards extremely rewarding. Here's the first of three surprising reasons why:
Surprising Angle #1: It's about optimizing the payment mix, not dropping checks altogether.
You want to streamline your AP process to best serve your organization's needs...but you're worried about alienating those trusted suppliers that REALLY only want to do business by check.
I get it. You'd never send your Great-Aunt Mildred anything but a handwritten, paper thank you note, and you're never going to send some of your vendors anything other than a paper check. Or maybe an ACH payment.
That doesn't mean you can't use virtual cards to pay those vendors that will readily accept them, and reap all the benefits card-based virtual payments have to offer. Aim for a goal of 60% virtual payments (for most expenses) to 35% distributed card payments (for small-ticket items) to 5% checks (for when you absolutely have to use them). It's about moving your payment mix to a happier ratio of virtual card payments to p-card payments to paper checks, not being locked into one type of payment.
Next post: Surprising Angle #2 (Sneak preview: If your suppliers already accept credit cards, it's just as easy for them to accept your virtual card payments.)
Want to know ALL the angles on virtual cards? Check out our 101 guide to Virtual Payments Technology: