The value of running a supplier analysis before virtual card adoption

The first thing we do with customers when they’re considering moving away from paper checks to a virtual card payments technology is to analyze the suppliers with whom they are currently doing business.

• How is the business paying suppliers in their day-to-day operations?
• Which of their suppliers are likely to accept virtual cards? Who would be willing to move away from current payment methods?

Some small businesses may be resistant to change. Despite the many benefits to virtual payments, risking moving away from traditional methods, like payments by check, ACH, or manual credit card entry, means spending valuable time learning a new system. It鈥檚 important to know ahead of time how many suppliers will convert. What will the annual spend be when transitioning to virtual card? This will allow you to quantify the value and financial impact of implementing a virtual card program for your business.

When choosing a virtual card offering, ideally your business would want to work with an organization that offers a thorough analysis of your supplier file. Every organization that is selling virtual cards or corporate cards does some version of an opportunity analysis for their customers. What you鈥檙e looking for in a virtual card partner is one that conducts the most comprehensive and thorough version of opportunity analysis. You’ll also want to partner with a company that conducts an analysis that produces realistic projections. Not all suppliers that accept card payments will accept virtual cards. Now that we have a sense of the value of this process, we can get to the five steps that 糖心Vloghas come up with to help assist clients with the transition. We鈥檒l get down to the nitty gritty details which allow our clients to feel protected in this process.

糖心VlogSupplier Enablement

Step 1: Select your virtual card vendor

Before you decide whether or not to transition to virtual payments, you need to determine which virtual card supplier is going to be the best fit for your company. There are a lot of options to choose from. It鈥檚 good to know how to narrow down the field of competitors.

First confirm the virtual payments provider has the necessary tools and technology you need. Then prioritize finding one with a system that is easy to use and quick to implement. Ensure their platform is also secure and flexible to meet your business needs. Flexibility is really important. Many platforms seem sophisticated but lack flexibility, making customization impossible for anything outside their pre-formatted options.

Finding a payment tool that鈥檚 flexible to meet your company鈥檚 unique needs allows you to get the most out of the transition to virtual payments.

Make sure you partner with a payments vendor who provides comprehensive supplier onboarding

Once you鈥檝e narrowed the field to a product that is easy, quick, and secure, it鈥檚 helpful to take note of how each company onboards its customers. You鈥檒l want to partner with a company that will effectively implement your virtual payments program to ensure you are able to pay your suppliers with a virtual card. A lot of organizations will run the necessary supplier analysis. They’ll set your business up on the platform. They鈥檒l show you how to facilitate payments. And then they鈥檒l pass you the keys and have you take things from there. This can be an issue if it overlooks the task of ensuring all suppliers are in your system and ready for the next pay cycle.

You want to be sure you partner with a vendor who will do a comprehensive onboarding, assisting you through each step of the process. There are steps that have to be taken that are better done with the help of your payments vendor.

Once you鈥檙e set up in the platform, you have to:

• Contact your suppliers to confirm they can be paid with a virtual card.
• Capture the supplier鈥檚 payment method.
• Activate the vendor in the payment software.
• Ensure the payments company supports you with post-implementation steps after the technology setup.

At WEX, we differentiate ourselves as a business through our team of on-shore resources. 糖心Vlogemployees are fully dedicated to working with our clients and onboarding as many of their suppliers on their behalf as possible.

To what extent should you expect your vendor to help you onboard suppliers?

Partner with a payments provider who will support you through the entire virtual card setup process. They should ensure your suppliers are enrolled and set up in the system. Working with a payments technology company that values supplier relationships will benefit you. At WEX, we believe the best way to help our customers is by assisting their suppliers in transitioning to virtual payments.

糖心Vlogengages with suppliers through whichever messaging you prefer. 糖心Vlogcommunicates with suppliers to inform them about your virtual card program and its benefits. We reach suppliers through physical mail, email, and follow-up phone calls. Our team ensures you are comfortable with the process every step of the way.

Through these communications, 糖心Vlogaims to collect the information you need to transition your suppliers to virtual payments. 糖心Vlogdifferentiates itself in the marketplace because we will go through the supplier onboarding process for your entire supplier file.

It鈥檚 important to find a virtual payments technology provider with a robust supplier enablement team. This team should have a dedicated process to seamlessly onboard all your suppliers.

How the customer can partner with the payments vendor to onboard those last hold-outs

After your vendor has onboarded the majority of your suppliers, focus on the unresponsive ones. Reach out to these suppliers directly. Emphasize the importance of virtual card payments and offer support from your payments consultant team.

Your payments technology partner should continue to support you in engaging the suppliers that were nonresponsive. When you are selecting a supplier to do business with you, you should select a supplier that has a process for converting those last stragglers into virtual card adopters.

Choose a payments technology provider that can support various payment methods

When a customer is selecting which virtual payments supplier they want to work with they should find a company that offers Agent Pay Service. This is a service which allows your business to pay suppliers that will not accept payment via email. Some suppliers may agree to take a virtual card as a form of payment, but request that instead of them receiving the payment from you via email, they want your company to take adjacent steps to ensure each payment is processed.

Your supplier might ask you to go to their website, click on a button that opens up a form, and fill that form out as part of the payment process. They may require you to pick up the phone and call them as part of the process or suppliers might ask that you use their system to make payments. It鈥檚 probably somewhere in the neighborhood of 20% of all the virtual card payments that fall into this category.

Managing unique payment requirements

At 糖心Vlogwe can relay that payment information to our client. If they have resources, and the time, then they can do it on their own behalf. 糖心Vlogalso offers to make it simple and easy for its customers and can manage those vendor processes that fall outside the steady stream of regular virtual payments. 糖心Vloghas a team that will go through those individualized, customized processes for your suppliers on your behalf.

Your payment technology partner鈥檚 capacity to plan for all possible payment relationships will be the determining factor in whether or not you鈥檙e able to make a seamless transition to virtual payments. Each step of the way鈥揻rom the opportunity analysis to the determination of whether or not virtual payments make sense for your company, all the way to the onboarding process鈥搚ou want to work with a company that will give you comprehensive and effective support. Keeping an eye on the strategies and resources of each payment platform will help you make a decision that will strengthen your business and make day-to-day operations more efficient and secure.

Step 2: Pre-opportunity analysis

Once you鈥檝e engaged with your payments technology partner of choice, you can then work with them to conduct an opportunity analysis. An opportunity analysis starts with providing your virtual card partner with your supplier file.

Typically that data comes in the form of a spreadsheet and the information includes:

• Supplier name and address
• How much your company is spending on an annual basis with that supplier
• The current payment terms
• The method of payment

Determine which of your suppliers already accept virtual cards

Next, your payments technology provider takes that information and runs it through a database. 糖心Vloghas proprietary tools that allow us to look at your supplier information in a holistic way. The first thing 糖心Vlogcan do is validate which of your suppliers is actively being paid via a virtual card by one of WEX鈥檚 customers. This allows your business an advantage by gaining insight into which vendors you immediately know will be amenable to the transition to virtual payments: if they鈥檙e already engaged in virtual payments with another 糖心Vlogcustomer it鈥檚 likely they will quickly jump on board with your company as well.

Just because a vendor accepts credit cards does not mean they are ready to accept virtual payments

One common misconception is that if a supplier accepts Visa, Mastercard, or American Express that automatically means they will accept a virtual card. At WEX, we are fortunate to have a 25 year history and track record as a Virtual Payments provider which allows for access to robust supplier information. We can pass that information on to you as you determine how many of your vendors are going to be able to accept virtual payments from you as soon as you transition. When you make the move to virtual payments technology, you are much more likely to have a smooth transition if you are working with a commerce platform that can glean accurate data from your supplier file.

Determine which companies among your suppliers could easily transition to a virtual card

After we determine which companies on your database already accept virtual cards, we then determine which suppliers are currently set up to be paid with a Visa or Mastercard and could accept a credit card. We segment the supplier file based on information that we know from our database, and we share information with you that shows how many of your suppliers fall into each category. We also do an analysis of which segments make up which percentage of your overall spend. You are then able to determine, based on the data we鈥檙e able to generate for you, how much of your spend is likely going to be accepted on a virtual card once you make the transition.

Determine the financial value of transitioning to virtual payments technology

The next step within the opportunity analysis is to conduct an economic analysis based on the supplier data we provided, and based on the elimination of check costs, the benefits of increased security a virtual card brings, and the savings you can realize from creating efficiencies for your business. Knowing how much you’re spending and what rebates each supplier would bring, you can then determine your projected financial incentive return. It鈥檚 at this point that you ask yourself, 鈥淗ey, is there enough pay-off? Is the juice worth the squeeze? To what degree will this process benefit my business?鈥�

At this point in your analysis, you can get a good idea what the opportunity looks like, what the total return is, and what benefit you鈥檇 see coming back to your business. 糖心Vloggives you the tools to unearth all the data and get it in front of you so you can make a sound decision about whether or not to adopt virtual payments for your business.

Step 3: Contract and approval

The next step after conducting an opportunity analysis and determining you will move forward with adopting a virtual payments platform would be to go through the contract and credit approval process. This step may require you to provide Beneficial Ownership and company financials depending on the credit terms that you are requesting.  At WEX, we have multiple credit terms that a client can choose from.

Step 4: Implementation and supplier enrollment

After you have a signed contract with your chosen vendor, implementation involves validating all suppliers who will be in your virtual payments program. Your payments partner will gather detailed supplier information and launch a supplier enrollment campaign. At this point your payments vendor will be ready to start communicating with suppliers and reaching out and developing a database of all your partners that will get paid with a virtual card.

At the same time that your suppliers are being onboarded, your payments partner will be implementing integration technology with your accounting system or your Enterprise Resource Planning (ERP) tool. They will make sure that they can produce a file in the necessary format, and will adjust the process until they can put through payments on your behalf.

At this point in the process, your payments vendor will also be developing a system where they can create a reconciliation file for you. They will set up a customized platform specific to each customer鈥檚 needs. During this phase, your vendor will set up technology tools, get the suppliers to provide detailed information, and begin to implement the virtual payments system.

Step 5: Ongoing payments strategy

This final step is about maintenance. You will have compiled a supplier list of everybody you鈥檝e done business with in the past. With this you will be prepared if any of them are already virtual payments adopters. Your payments vendor will train you on onboarding every new supplier that you set up in your system.

New suppliers

New suppliers should be encouraged to accept virtual card payments. Your virtual card vendor can provide the necessary information to convince them. Explain to suppliers how virtual cards can reduce costs, improve efficiency, enhance security, and offer financial incentives.

Existing suppliers

Existing supplier contracts up for renegotiation are a great opportunity to introduce virtual card payments. Train your procurement team to negotiate virtual card payments as a preferred method. For suppliers who initially declined, your team can revisit the topic during contract renegotiations.

Following these five steps will ensure a smooth transition to virtual cards. Choose a reliable payments technology partner to guide you through the process. This will simplify the transition for both you and your suppliers.

Learn more about how 糖心Vlogpayment solutions can be tailored to your business, so you can accelerate and streamline operations while creating lasting growth and success for your organization. And check out our infographic below to learn more about the perks of virtual cards!

For more insights and updates on corporate payments, check out:

• Your guide to virtual card rebates
• 2025 payment trends
• Is the secret to better cash flow management AI?

Stay up to date on the latest in business payments by subscribing to our blog! Simply hit the 鈥淪ubscribe鈥� button above or submit your email address in the form below.

The information in this blog post is for educational purposes only. It is not legal, tax or investment advice. For legal, tax or investment advice, you should consult your own legal counsel, tax, and investment advisers.

Editorial note: This article was originally published on June 23, 2022, and has been updated for this publication.

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It鈥檚 as important as ever to be aware of how to put your HSA or FSA dollars to work. Here are 10 items under $10 you can purchase with your HSA or FSA funds that will help you during this time. 

Remote employees

Working from home can be convenient and flexible, but it can also present issues such as increased eye strain, aches from sitting longer than usual, and tension from spending too much time on devices. If you鈥檙e working from home or experience any of these types of issues, these four products can reduce some of the stress in your home office:

Items for kids

If you have children, they may be rambunctious from being cooped up, or they may be dealing with normal kid stuff – like teething or fighting a cold as the season changes. Your HSA or FSA has your back whether your kiddos have bumps that need soothing or noses that need wiping. Here are three products that can help your kids thrive:

• Ear syringe/nasal aspirator

Self care

Even during social distancing, busyness and self-care needs don鈥檛 go away when you clock out or put the kids to bed. If anything, you have to be 鈥渙n鈥� more than ever right now (even if your new favorite work shoes are slippers). These HSA- and FSA-eligible items can help you take care of yourself as you juggle a busy schedule.

Would you like to learn more about enrolling in an HSA or FSA? Watch our Benefits podcast episodes below. 

The information in this blog post is for educational purposes only. It is not legal or tax advice. For legal or tax advice, you should consult your own counsel.

To discover the ways we simplify benefits for everyone, visit the 糖心VlogBenefits Platform.

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Non-discrimination testing takes on even greater importance during the COVID-19 pandemic, as your workforce and the way your employees engage with their benefits may have changed during these times. We鈥檝e outlined two reasons why non-discrimination testing is even more important right now and what you can do about ensuring your FSA and HRA are compliant. 

Changing employee population

The number of Americans who have filed for unemployment benefits since the start of the pandemic (roughly 1 in 4 American employees). The decision to furlough or lay off employees can affect your employee population numbers. And, as a result, that can affect the compliance of your employee benefits.  

Mid-year election changes

states that employers may temporarily allow employees to newly make, change or revoke a Medical FSA or Dependent Care FSA election in the middle of the plan year. Prior to this Notice, the employee needed to experience an IRS-approved qualifying event in order to make mid-year changes. Notice 2020-29 temporarily waives that requirement for the calendar year 2020. These mid-year changes affect your FSA election data, which can impact your FSA鈥檚 compliance. 

What can you do? 

We have previously recommended that you test your plans at least twice per plan year (once at the beginning or middle of the plan year and again prior to the end of the plan year). However, with employee population and regulation changes, you may decide that you would like to test more than twice in the plan year to ensure compliance throughout the year. That鈥檚 why many employers turn to a subscription-based non-discrimination testing platform so they can test as often as they鈥檇 like.

Would you like to learn more about our non-discrimination testing solution? Watch our video.

The information in this blog post is for educational purposes only. It is not legal or tax advice. For legal or tax advice, you should consult your own counsel.

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For that reason, both the and the are advocating the increased use of telemedicine appointments. And the American Academy of Family Physicians and the have released updated guidelines for telemedicine visits.

But telemedicine is still new and unfamiliar to most of us. Here鈥檚 what you should expect when scheduling a telemedicine appointment.

Getting the technology ready

You should be able to use your laptop, tablet or smartphone for the appointment. Ensure that you have a reliable internet or cellular connection, and make sure the device is charged or plugged in. Videoconferencing requires a lot of bandwidth, so close all unused programs or apps before the appointment. Make sure you download the app your provider will be using in advance, and read the instructions about how to use it. If you鈥檙e using a tablet or smartphone, it鈥檚 a good idea to find a way to prop up the device so you鈥檒l be clearly in the camera鈥檚 frame without having to hold it for the whole appointment. If you鈥檝e never used your laptop鈥檚 webcam before, for identifying and testing it.

Getting yourself ready

A virtual healthcare appointment is similar to an in-person one, but the provider will not be able to touch your body, take your vital signs, or listen to your heart and lungs. That鈥檚 why it鈥檚 important to be prepared before the visit. Make a list of your symptoms, noting when they started and how severe they are. Write down any medications you are taking, and note any chronic conditions you have. If you have the tools, take and record your own temperature, blood pressure and other vital signs. Find a quiet spot with good lighting so you can be seen and heard clearly. While on the videoconference, answer the provider鈥檚 questions as clearly and directly as possible, staying on topic. Have a pen and paper ready to take notes on the provider鈥檚 recommendations or to jot down questions.

Checking your insurance coverage

Before COVID-19, coverage of telemedicine visits was hit and miss, with more than requiring private insurers to cover them. But and some other insurance carriers have temporarily expanded their coverage in light of the declared coronavirus public health emergency. You may have to call your insurance company to ensure your visit will be covered.

What about privacy?

privacy rules are still in effect for the information you share in your telemedicine visit. The audiovisual technologies used for these appointments (such as Skype), however, have security vulnerabilities and might not normally be HIPAA-compliant. Because of the COVID-19 emergency, the Office of Civil Rights, which is the branch of the U.S. Department of Health and Human Services that enforces HIPAA, recently issued a saying it will not take enforcement action against any telemedicine provider as long as the service is done in good faith, with no intent to breach a patient鈥檚 privacy. The statement also stresses that social media apps such as Facebook Live, TikTok and Twitch are not appropriate for telemedicine.

The pandemic has changed life as we know it, but we鈥檙e here to help you navigate what these changes mean for your healthcare benefits. Keep reading our blog to learn about the CARES Act.

The information in this blog post is for educational purposes only. It is not legal or tax advice. For legal or tax advice, you should consult your own counsel.

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Cast a wider net

When you hold an in-person event, employees might not attend because they鈥檙e busy at their desks, they have a schedule conflict or because they just don鈥檛 think it鈥檚 worth their time. However, by hosting an open enrollment fair virtually, you鈥檙e able to reach everyone no matter where they are.

鈥淚鈥檓 really optimistic that this could also present a unique opportunity for us,鈥� said Vice President Matt Poppe during . 鈥淚n a traditional fair environment, you only get to see who comes to you. If we do this right (virtually), we鈥檙e going to have an opportunity to push material out to everybody in the workforce, which ultimately is what our employers would like to happen.鈥�

Built-in efficiency

You might spend lots of time putting together an open enrollment fair. However, as Associate Vice President Nate Black said during , 鈥渢he average person during open enrollment spends 17 minutes choosing their benefits.鈥� He added that the average person actually spends more time deciding what to watch on their streaming service than they do picking their employee benefits for the year. So how can you get the most out of your time and make the most out of those 17 minutes? The answer might be to go digital. By doing this, everything you produce can be saved, shared and referred to at any time. You can make your presentation and your materials available for future use. 

Virtual open enrollment is the future

Digital, virtual communication is becoming increasingly important. More than two-thirds of teenagers would rather talk to their friends . And we鈥檙e already seeing that one-third of adults prefer texting to talking. By conducting a virtual open enrollment fair, you鈥檙e actually catering to an audience that might already be hungry to have information served up to them in that way. And that digital-focused audience is probably only going to keep growing, as those teenagers get older and enter the workforce.

Don鈥檛 miss out on our virtual learning and networking opportunities! Watch supplementary clips from our first event’s session library at . 

The information in this blog post is for educational purposes only. It is not legal or tax advice. For legal or tax advice, you should consult your own counsel. 

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2021 HSA limits:聽

The 2021 HSA contribution limits will increase to $3,600 for single and $7,200 for family.

2021 HDHP limits:聽

Your employees must be enrolled in an HDHP in order to be eligible to participate in an HSA.

Our blog will keep you up to date on the latest news surrounding your employee benefits, including future HSA contribution limits announcements. Learn more about HSAs and HDHPs by checking out our HSA blog archive.

The information in this blog post is for educational purposes only. It is not legal or tax advice. For legal or tax advice, you should consult your own counsel.

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On April 28, 2020, the U.S. Department of Labor and IRS issued , which granted a temporary extension of run-out periods for Flexible Spending Accounts (FSAs) and Health Reimbursement Arrangements (HRAs). It also granted a temporary extension of certain deadlines for sending notifications, electing, and paying for COBRA continuation coverage during the COVID-19 outbreak.

Additionally, on May 12, 2020, the IRS issued and , which provide participants in Medical FSAs, Dependent Care FSAs, Individual Coverage HRAs (ICHRAs) and High-Deductible Health Plans (HDHPs) with temporary help during the COVID-19 pandemic. 

Here鈥檚 how each notice affected your plans: 

FSAs and HRAs

• FSA and HRAs were granted a temporary extension of run-out periods. These extensions are retroactive to deadlines occurring from March 1, 2020 until 60 days after the COVID-19 National Emergency is declared over or until one year has passed, whichever occurred first. The run-out extension gives participants additional time after the COVID-19 National Emergency is declared over to submit claims for any active plan year they are enrolled in that has a run-out period ending during the relevant timeframe (March 1, 2020 until 60 days after the end of the COVID-19 National Emergency or until one year has passed, whichever occurred first).

COBRA

Under this temporary extension, qualified beneficiaries and COBRA members have extra time to send certain notifications about COBRA coverage, to elect COBRA coverage, and to make premium payments. These changes are retroactive to any deadline occurring from March 1, 2020 until 60 days after the COVID-19 National Emergency is declared over or until one year has passed, whichever occurred first.

• Election Period Extension: Prior to the temporary rule change, qualified beneficiaries had 60 days from the date of the Specific Rights Notice (SRN) to elect COBRA. With this COBRA election period extension, the period from March 1, 2020 to 60 days after the end of the National Emergency is disregarded or until one year has passed (whichever occurs first) in determining the end of the 60-day COBRA election period.
• Grace Period Extension: Prior to the temporary rule change, COBRA members had a 30-day grace period to pay monthly COBRA premiums in order to maintain coverage, and a 45-day grace period to make an initial payment upon first electing COBRA coverage. With this COBRA grace period extension, the period from March 1, 2020 to 60 days after the end of the National Emergency is disregarded or until one year has passed (whichever occurs first) in determining the end of the COBRA premium payment periods.
• Second Qualifying Event and Disability Notifications: Prior to the temporary rule change, COBRA members had 60 days to notify their administrator of a second qualifying event that would extend the COBRA coverage period from 18 months to 36 months. COBRA members also had 60 days to notify their administrator of receiving a Social Security Administration disability determination to extend the COBRA coverage period from 18 months to 29 months. With this COBRA notification extension, the period from March 1, 2020 to 60 days after the end of the National Emergency is disregarded or until one year has passed (whichever occurs first) in determining the end of the required notification periods for a second qualifying event and disability determination.

On October 6, 2021, the IRS released additional guidance explaining how the extensions apply to initial and subsequent premium payments. Click here for more details.

and

Medical FSAs/Dependent Care FSAs

• Employers may allow employees to newly elect, change or revoke a Health or Dependent Care FSA election in the middle of a plan year. Prior to this Notice, the employee needed to experience an IRS-approved qualifying event in order to make mid-year changes. Notice 2020-29 temporarily waives that requirement. This optional relief applies to mid-year elections made during calendar year 2020.
• Employers may allow their employees to tap into unused funds from any FSA plan with a grace period or plan year that ends in 2020. These unused funds can then be used on medical care or dependent care expenses incurred through December 31, 2020.聽

Medical FSAs 

• In addition to the above changes, the amount a Medical FSA participant can carry over from one plan year to the next year is now $550 (an increase of $50). This change is in effect for any plan year that began on or after January 1, 2020. In future years, the carryover amount will be indexed for inflation.

ICHRAs

• Employers may now reimburse employees who participate in an ICHRA for their individual insurance premium expenses paid prior to the start of their ICHRA鈥檚 plan year, as long as the insurance premiums being reimbursed are for the same plan year as the ICHRA. That means if an employee pays for part or all of his/her individual insurance prior to the ICHRA鈥檚 plan year, the employer can now reimburse those expenses immediately when they鈥檙e paid rather than requiring the employee to wait until Day 1 of the ICHRA鈥檚 plan year.

HDHPs

• Telehealth and remote care expenses may now be covered by an HDHP, even if the employee has not reached his/her deductible. This relief is in effect for plan years beginning on or before December 31, 2021 and applies to services provided back to January 1, 2020. This is a retroactive expansion of the CARES Act, which allowed these expenses to be covered from March 27, 2020 (the date the CARES Act was signed).

Keep up to date on the latest news regarding your employee benefits by checking out .

The information in this blog post is for educational purposes only. It is not legal or tax advice. For legal or tax advice, you should consult your own counsel. 

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