Earn rebates on spend
Companies that deploy card payment strategies have the potential to share revenues earned from the program with their bank issuer. This rebate is typically a percentage of the annual spend transacted by a company, after minimum spend thresholds are met. Typically, companies may receive benefits in the form of rebate tiers – the higher the spend, the greater the amount of the incentive. These rebates are usually made annually by the bank and can easily benefit Treasury’s bottom line.
Reduce processing costs
Cards-based payments deliver significant savings in processing costs as well. By using cards for business expenses, you’ll effectively replace hundreds of invoices and individual payments with a single, automated process each month. You’ll also reduce the number of purchase orders that need to be handled and approved by multiple personnel in an organization.
Virtual cards can offer similar cost savings. When used as a method of payment, rather than as a procurement tool, purchase orders and invoices are still present in the payment flow. However, because payments that would traditionally be made by check are now converted into card transactions, the savings and cost efficiencies can be significant. And because there is no physical card as individual account numbers are generated for each transaction, virtual card programs offer an added layer of security.
Most companies that deploy these card strategies see the benefits of improving cash flow, earning rebates, and reducing processing costs. They impact the bottom line significantly for Treasury organizations and empower employees to work more efficiently by using card-based payment tools on a daily basis.
To learn how you can use payment card strategies to work harder for your company, visit our website.