Let’s clear up some confusion around these methods – how they work, how they differ, and how they complement each other.

What is the Payment Card Industry Data Security Standard (PCI DSS)

The is a set of rules aimed to protect sensitive credit card information. It requires businesses handling card information to follow strict security practices. This helps protect cardholder data, implement control measures, and ensure compliance. 

One key requirement is converting sensitive data into a secure format, making it unreadable to unauthorized users. This can be achieved through encryption or tokenization.

Understanding encryption

The purpose of most encryption tools and techniques is to scramble data. Then allow it to be unscrambled, or decrypted, when needed.

Think of encryption as a code, not unlike one that armies use to send messages to their commanders or allies during wartime. It uses an algorithm to scramble information and make it unreadable to anyone without the proper decryption key. The scrambled or encrypted data often resides on a company’s internal servers or networks.

Encryption is essential for securing data in transit, such as during online transactions. PCI DSS standards mandate the use of protocols like Transport Layer Security (TLS) to encrypt data while it moves through networks. It is data at rest that is the most vulnerable, as it is more easily accessible to hackers looking to expose and steal it. If an experienced hacker is able to decrypt the data, then they have the key to unlock all of the sensitive information being stored. It is clear then that encryption is not completely secure in the face of security threats.

Understanding tokenization

Many companies have found tokenization to be cheaper, easier to use and more secure than end-to-end encryption.

Tokenization replaces original card data with a unique, generated placeholder, or “token”. Because tokens are randomly generated and there is no algorithm to regain original information, they have no meaning by themselves. Thus, crooks can’t reverse-engineer credit card information, even if they were to grab tokens off of a company’s servers. Tokenization increases security because tokens are worthless to criminals should a company’s system be breached in any way.

Tokenization can be done in-house or outsourced.

If done in-house, merchants must move their cardholder data to an environment called the token vault. When it’s time to process the information, merchants send the token representing the card data to the token vault to retrieve the PAN and forward it to the network for authorization. This scheme reduces the instances of card data floating around the merchants’ systems and thus the ability for a hacker to siphon it away.

Outsourced tokenization works in the same way, but eliminates the card data from the merchant environment. This is much like emptying a warehouse so that a thief has nothing to steal. Merchants use only the token to retrieve, access or maintain their customers’ credit card information. Meanwhile, their customers’ card data is stored at a highly secure, offsite location by a vendor with PCI certification.

Whether done in-house or outsourced, tokenization doesn’t alter the merchant’s payment processing or channels. Just like credit cards, tokens can be used for customer sales, refunds, voids, and credits—only they’re a much safer option. The appeal of removing confidential customer credit card data from internal networks is one of the biggest reasons why more and more companies are turning to tokenization.

Who benefits?

Companies that collect and store credit card data often find the PCI process to be a huge headache with potentially significant liabilities and costs. Because every point at which credit card data is handled must be secured, conforming to these rules as well as building and defending one’s own data fortress can become extraordinarily difficult and expensive.

Because outsourced tokenization removes card data completely from the merchant environment, there is nothing useful for criminals and the liability and costs that merchants often associate with PCI compliance are dramatically reduced.

Many merchants find outsourcing to be less expensive than creating a team or diverting employees’ hours to card security and PCI compliance. Typically an outsourced solution will be about one-third the cost of an in-house solution.

As cyber threats continue to evolve, tokenization has become a preferred choice for businesses prioritizing secure, efficient payment processes.

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

• Is the secret to better cash flow management AI?
• Traditional vs. virtual payments
• 2026 business payment trends

Stay up to date on the latest in business payments by subscribing to our blog! Simply hit the “Subscribe” 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 July 17, 2017, and has been updated for this publication.

The post Tokenization 101: Understand the basics of payment data security appeared first on ĚÇĐÄVlog..

1. Embrace virtual cards

While checks are a declining form of payment overall, they still represent the greatest number of B2B payment transactions.

In 2024, organizations using susceptibility to fraud, a significant improvement compared to the 63% vulnerability associated with check payments. From the moment check payments are issued, they are at a high risk for fraud because:

• Dishonest employees may issue checks without proper authorization.
• Fraudsters can easily alter checks or create counterfeit checks.
• Checks contain bank routing and account numbers in plain sight for fraudsters to use.

Virtual cards offer enhanced security by expiring once the designated dollar amount has been processed, minimizing the risk of ongoing fraudulent transactions.

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2. Implement positive pay

Check fraud hits your bottom line directly. It’s a very manually intensive process to address, given that you have to issue stop payments, re-issue checks, close and reopen accounts, order new checks, etc. If you must continue issuing checks, implement a positive pay program in conjunction with your bank.

With positive pay, you forward a check issue file to your bank for each check run. Any discrepancies prompt your bank to notify you of authorization or decline, adding an extra layer of protection.

3. Verify vendor data

Periodically review vendor contact information for accuracy in your vendor master file. Some red flags for possible fraudulent activity include:

• A “public” email address (such as Gmail, Yahoo, etc.) for the vendor.
• A residential address instead of a commercial address.
• A vendor address that matches one of your employee’s addresses.
• Two or more vendors with the same contact information.

If a vendor contacts you by phone to change their information, such as address or bank account number, make sure you also verify any changes with the vendor in writing to guarantee the authenticity of the change.

4. Conduct surprise audits

Periodically review your AP department’s policies and procedures, paying close attention to fraud detection and prevention effectiveness. Consult with your peers as well to identify possible weaknesses in your fraud prevention policies and procedures.

5. Define employee duties

Most employees are honest, but you must also take steps to prevent internal fraud. For example, the same employees shouldn’t be responsible for issuing payments and reconciling accounts. In addition, make sure you separate the vendor setup process from the vendor payment process.

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

• Is the secret to better cash flow management AI?
• Traditional vs. virtual payments
• 2026 business payment trends

Learn more about how ĚÇĐÄVlogpayment solutions can be tailored to your business, so you can accelerate and streamline operations while creating lasting growth and success for your organization.

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.

The post 5 smart ways to protect your AP from fraud appeared first on ĚÇĐÄVlog..

What is a virtual card rebate? 

Virtual card rebates are incentives offered by issuers (such as WEX or a credit card company), providing cash back or discounts exclusively for virtual card payments. Unlike traditional rebate programs, virtual card rebates are seamlessly woven into the payment process, offering businesses a hassle-free way to optimize their spending. These rebates also eliminate the need for manual paperwork, helping your business save money and time. With virtual card rebates, organizations can increase efficiency while enjoying the benefits of an automated rebate system.

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How do virtual card rebates work? 

When a business pays with a virtual card, the issuer automatically calculates and applies the rebate based on predefined criteria. The rebate is applied to the transaction, ensuring businesses experience quick cost savings. This automated process is a seamless and user-friendly experience, where cost reductions are easily reflected in the transaction.

Revenue potential versus other payment types

Virtual cards vs. traditional check payments

What can make checks a cost center? 

• Accounts payable teams that rely on traditional check payments often incur expenses related to check printing, postage, and mailing.
• Manual processes, such as check issuance and reconciliation, are time-consuming and require dedicated staff.
• Delayed payment processing can lead to missed early payment discounts, potentially costing the organization money.

How can virtual cards turn accounts payable into a profit center?

• By switching to virtual cards, accounts payable teams can earn rebates on the payments made to suppliers who accept virtual cards. These rebates turn what used to be an expense into a source of revenue.
• The streamlined and automated payment process reduces the labor and administrative costs associated with check payments, freeing up resources for more strategic activities.
• Faster payment processing with virtual cards enables organizations to capture early payment discounts more consistently, resulting in cost savings and improved cash flow.

Virtual cards vs. ACH

What can make ACH a cost center? 

• ACH payments are generally more cost-effective than paper checks but still involve transaction fees.
• Accounts payable teams may still need to dedicate resources to managing payment files, ensuring data accuracy, and reconciling payments.
• ACH payments lack the revenue-generating potential of virtual card rebates.

How can virtual cards turn accounts payable into a profit center?

• Virtual cards offer similar cost-saving advantages when compared with other payment types but also provide the opportunity to earn rebates, effectively turning payments into a source of income.
• The automation and efficiency of virtual cards reduce the administrative burden on accounts payable teams, allowing them to focus on value-added tasks.
• By encouraging suppliers to accept virtual cards, organizations can maximize their rebate potential and further increase their revenue.

Virtual cards vs. physical credit cards

What can make physical credit cards a cost center? 

• Accounts payable teams that rely on physical credit cards may incur annual fees for each card issued to employees.
• Expenses related to card issuance, replacements, and cardholder training can add up.
• Physical credit cards do not typically offer rebates or cashback benefits to the organization.
• The risk of unauthorized or excessive spending can be higher compared to virtual cards.

How can virtual cards turn accounts payable into a profit center?

• Virtual cards can offer similar expense reduction benefits as physical credit cards, such as reducing the need for paper checks and manual processes.
• Unlike physical credit cards, virtual cards often come with the potential to earn rebates, effectively turning payments into a source of revenue for accounts payable teams.
• Virtual cards can provide more granular control over spending, allowing accounts payable teams to set specific transaction limits and restrictions.
• Enhanced security features of virtual cards, such as one-time-use card numbers, reduce the risk of fraud and unauthorized spending.

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

• Is the secret to better cash flow management AI?
• Traditional vs. virtual payments
• 2026 business payment trends

Learn more about how ĚÇĐÄVlogpayment solutions can be tailored to your business, so you can accelerate and streamline operations while creating lasting growth and success for your organization.

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 legal counsel, tax and investment advisers.

Editorial note: This article was originally published on February 26, 2024, and has been updated for this publication.

The post The ultimate guide to virtual card rebates, savings, and profits appeared first on ĚÇĐÄVlog..

Virtual cards

• What are they? 
  • Virtual cards are digital representations of physical credit cards, specifically designed for online transactions. They are also the most efficient receivables payment type due to their speed and security.
• Fraud rate: 79% of organizations were victims of payments fraud attacks or attempts in 2024 ()
• Other considerations:
  • Enhanced security: Virtual cards reduce the risk of unauthorized transactions with their single-use nature.Ěý
  • Streamlined tracking: Easy reconciliation and tracking of expenses make virtual cards a preferred choice for many businesses.

Check out our blog post to learn more about the perks of virtual cards.

Physical corporate cards

• What are they? 
  • Physical corporate cards are traditional credit cards issued to employees for business-related expenses. These cards offer convenience and flexibility for in-person transactions.
• Fraud rate: 21% of organizations faced some kind of corporate/commercial card fraud in 2024
• Other considerations:
  • Employee control: Corporate cards allow companies to monitor and control employee spending, setting predefined limits and tracking expenses. 
  • Vendor acceptance: The usability of physical corporate cards depends on the vendor’s acceptance of card payments.

Check

• What are they?
  • Checks are a longtime staple that permit the transfer of funds between accounts. Despite technological advancements, checks remain a widely used B2B payment method despite being the least efficient receivables payment type, with payments taking a minimum of 1-3 business days to be posted and the majority of payments taking up to 3-5 business days. 
• Fraud rate: Checks are the most vulnerable payment method to fraud with 63% of organizations facing check fraud activity in 2024.
• Other considerations:
  • Processing time: Checks may take longer to process compared to electronic methods, impacting cash flow. 
  • Manual effort: Handling physical checks involves manual effort, contributing to potential delays in payment processing.

ACH

• What are they? 
  • ACH transfers involve electronically moving funds between bank accounts. ACH is a commonly used and efficient option for recurring payments. ACH payments are efficient, with over 65% of payments posted in 1-3 business days.
• Fraud rate: 38% of organizations using ACH debits and 20% using ACH credits were subject to ACH fraud in 2024.
• Other considerations:
  • Processing speed: ACH transactions typically take a few business days, affecting the immediacy of fund transfers. 
  • Cost-effective: ACH transfers are generally more cost-effective than wire transfers, making them an attractive option for routine transactions.

Wire transfer

• What are they? 
  • Wire transfers are electronic transfers of funds between banks, providing a quick and direct method for B2B payments. They are particularly useful for international transactions.
• Fraud rate: 30% of organizations face some kind of wire transfer fraud in 2024.
• Other considerations:
  • Speed and certainty: Wire transfers offer and guaranteed fund transfers, ensuring timely transactions.Ěý
  • Cost: While effective, wire transfers may incur higher fees compared to other payment methods.

Cash

• What are they? 
  • Cash transactions involve physical currency and are relatively less common in B2B dealings due to security and tracking concerns.
• Fraud rate: 5% of organizations face some kind of cash fraud in 2024 (up from 4% in 2023).
• Other considerations:
  • Security risks: Handling large sums of cash poses security risks and may require additional precautions. 
  • Recordkeeping challenges: Cash transactions may lack the transparency and ease of recordkeeping offered by digital methods.

Mobile Wallets

• What are they? 
  • Mobile wallets, such as and , facilitate electronic transactions, offering a convenient and widely accepted way to send and receive payments.
• Fraud rate: 3% of organizations face some kind of mobile wallet fraud in 2024.
• Other considerations:
  • User-friendly: Online payment services provide a user-friendly interface, simplifying the payment process for businesses and clients. 
  • Transaction fees: Businesses should be mindful of transaction fees associated with online payment services.

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

• Your guide to virtual card rebates
• 2026 payment trends
• Is the secret to better cash flow management AI?

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 legal counsel, tax and investment advisers. 

Source:

The post Breaking down common B2B payment methods appeared first on ĚÇĐÄVlog..

Want help choosing the right payment solution for your business?

to compare options and find the best fit for your accounts receivable and payable workflow

Virtual cards vs. other forms of payments

When it comes to speed, virtual cards outpace traditional payment methods by a significant margin. Virtual cards are typically processed within 3 business days. Unlike checks or wire transfers that often involve manual processing, virtual cards allow for instant transactions. The unique digital nature of virtual cards eliminates the need for physical handling and mailing, translating to quicker payment cycles.

How can I benefit from faster payments?

• Negotiate better terms: Fast payments position businesses to negotiate better payment terms with suppliers. When you consistently pay on time, suppliers are more likely to offer you favorable terms. 
• Build trust with suppliers: Fast payments build trust and strengthen supplier relationships. When you honor your financial commitments promptly, suppliers are more likely to prioritize your orders, offer preferential pricing, and even collaborate more closely on future endeavors. 
• Streamline cash flow: Fast payments contribute to a healthier cash flow. By settling invoices quickly, businesses can better manage their financial resources, allocate budgets effectively, and navigate unexpected expenses more easily.

Why are virtual cards so fast?

• Dynamic card numbers: Virtual cards generate dynamic or one-time-use card numbers for each transaction. Unlike traditional credit cards with static numbers, virtual cards enhance security by preventing unauthorized use. Simultaneously, they contribute to the speed of transactions as the system can generate and authorize new card numbers in real-time. 
• Real-time transaction tracking: Virtual cards offer real-time transaction tracking features. Businesses can monitor payments as they happen, providing instant visibility into the status of transactions.

• Integration with financial software: Virtual cards seamlessly integrate with financial software and systems. This streamlines the payment process by automating tasks such as reconciliation, approval workflows, and record-keeping.

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

• Your guide to virtual card rebates
• 2025 payment trends
• Accounts payables: Terms you need to know

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 legal counsel, tax and investment advisers.

The post How faster payments give your business an edge appeared first on ĚÇĐÄVlog..

Digital payments, such as virtual cards and mobile wallets are becoming more prevalent in business than ever. Businesses are starting to realize the need to shift away from outdated payment methods, to more modern, digital solutions. While these digital payment solutions are making work and life easier, they are not without their challenges. Corporations small and large will need to be poised to ensure compliance with usage, as well as security and privacy, as they continue towards modernizing their payment processes. Like most complex systems, business is turning to technology to help with the planning and compliance — the most common answer is Enterprise Resource Planning (ERP).

ERP is automated software most commonly used to collect, store, manage and interpret data within all business components and divisions. It provides a holistic perspective of all business activity in real time, which is critical in managing corporate payment solutions, data collection, and compliance. ERP systems can facilitate information flow between all of these business functions internally as well as externally, enabling organizations to track and manage vendors, partners and other external stakeholder with transparency and detail. While enhancing business operational efficiencies, these systems are also important for mitigating human error — errors that could be detrimental in meeting compliance in any industry.

As most of Corporate America has turned to the cloud for managing and storing resources, ERP systems software also has. Web-based ERP software provides real-time access to all facets of business including human resources, strategic partners, vendors/suppliers and even customers. These systems are used for both internal and external access, making it more effective for collaboration and compliance as needed.

Web-based ERP software provides real-time access and connectivity

ERP was once primarily used for e-commerce, but these systems now include more functions and roles than ever before — account management, client relationships, transparency, global economic resources and standardization and compliance. Legal and regulatory compliance can often times cross international boundaries, which is why a larger integrated system is key. ERP systems take into account a global economy and can deliver a more efficient flow of information across all borders.

The financial sector faces tough standards

The financial sector is largely affected by compliance and legal regulations, and they are being held to extremely rigorous standards. This industry has a lot to be accountable for, not the least of which is fraud and anti-money laundering (at home and abroad).

They also have standards to follow for electronic payment systems, data protection and transfer, as well as accurate records keeping for all of it. With the right controls in place and a robust ERP system, these institutions may feel more confident in meeting PCI compliance requirements by centralizing payment data and providing secure, auditable records. A healthy and secure financial ecosystem can only be run by an equally healthy ERP network. Integrated networks can streamline the process and simplify the transactions while the system can see those transactions, simultaneously maintaining the integrity of the data through vigilant data collection, tokenization, data classification, data encryption and authentication of users.

But as you can imagine, it’s easier said than done. Regulatory mandates for the financial sector come quickly and often, which makes it even more challenging to stay compliant.

It’s important to stay vigilant and to make sure everyone from the corporate executives and board of directors to the strategic partners and the internal teams, understand the importance of compliance, and what it all means to them.

Keep teams informed on regulatory changes

Technology is only part of the equation. A strong compliance culture depends on people understanding their role in meeting standards. Here are effective ways financial leaders can stay on top of compliance.

• Educate staff. Whether through regular meetings or weekly email blasts, keep everyone who needs to know about regulatory changes up to date. Provide regulatory compliance training, and make sure employees also have access to resources such as industry publications and webinars on relevant topics.
• Invest in expertise. This includes hiring compliance officers and internal auditors. Engaging specialized consultants with deep expertise in regulatory matters can also help organizations to manage compliance initiatives more effectively.
• Learn from others. Keep an eye on competitors: Adopt their best practices and avoid repeating their blunders.

Compliance is risk management

It is clear that managing resources, financials and data is no more important than managing risk. Noncompliance could very well be the biggest risk a company could face next to fraud or data breach. Whether your company is an enterprise corporation or an independent business, communication is key. How a company collects, manages and interprets data might be the corner stone of their success. A robust ERP system can facilitate more than corporate payment solutions, inventory and production capacity. Your ERP could keep you integrated, efficient, informed and compliant.

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

• Your guide to virtual card rebates
• 2025 payment trends
• Accounts payables: Terms you need to know

Stay up to date on the latest in business payments by subscribing to our blog! Simply hit the “Subscribe” 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.

The post Is compliance built into your digital payments? appeared first on ĚÇĐÄVlog..

• Office space
• Out of pocket expenses
• Supply costs
• Advertising costs

While it is true that these areas contribute to a large percentage of the cost for any company, there is a single solution that can significantly address inefficiencies — with digital payments!Ěý

Transitioning operations to a digital payments platform will increase productivity, mitigate error, and provide the transparency and the data to inform future strategies that work.

Industries are adopting digital solutions for all aspects of business, the payment industry is no different. Companies like WEX are looking to technology to cut costs by streamlining complex business payments simultaneously and become more competitive in the market.

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The top 5 solutions start with integration and ERP

Enterprise Resource Planning (ERP) is a digital solution that was developed to address operational efficiency across all business units, including inventory and supply management, human resources, customer service and CRM, financial management and payments.

ERP software is integral in streamlining processes by integrating these business functions and information into a single and complete system database that can be accessed by the entire organization. This shared database provides employees across all divisions and business functions with visibility to specific information needed to accomplish their tasks. The system also creates continuity and accuracy in ways never before possible in business.

Once an ERP system is in place, additional digital solutions can be integrated, further strengthening the financial supply chain and cutting costs through efficiency and transparency. Because these systems are cloud based, it can eliminate the need for some systems hardware as well, leading to savings on overhead.

A digital, cloud-based platform can apply savings to each cost center mentioned above while automation will drive profitability as well. Payment companies like ĚÇĐÄVloghave developed products and systems that can be integrated seamlessly into any ERP platform.

In the complex world of business payments, these 5 solutions offer cost savings and improved operational efficiency.

1. Use virtual solutions to automate accounts payable

Business.com’s Jennifer Dublino says the is by embracing technology. Digitize processes wherever applicable to save time. Automation is your friend – consider using an accounts payable automation solution to simplify your payment process and generate new revenue opportunities through rebates.Ěý

The minimal amount of manual inputs not only reduces error rates, but also eases debtor management requirements and improves cash flow for the supplier.

The electronic processing of invoices and payments helps improve the overall operational efficiencies for the buyer and supplier.

2. Payment platforms integrating with ERPs

Payment platforms integrating with ERPs provide a seamless way to process payments, regardless of payment type. Bank agnostic platforms are designed to provide complete transparency and accountability for all supplier payment methods including virtual cards, ACH, and check.

• 100% electronic payments from day one
• Cost savings
• Increased security
• Improved supplier relations
• Flexible payment options (virtual cards, ACH, check)
• Greater overall visibility
• Bank agnostic network and platform

3. Use virtual card solutions for more efficient transacting

Traditional payment methods can be slow and inefficient. Virtual cards offer a more secure and quicker solution. By eliminating the need for paper checks and manual processing, virtual cards can significantly reduce the cost and complexity of your procure-to-pay process. 

A virtual card provides information for automatic reconciliation of entries which is quicker and more efficient than a manual system. This reduces the number of disputed entries and allows for better settlement processes.

Key benefits of virtual cards:

• Enhanced security: Virtual cards provide greater security than traditional payment methods by reducing the risk of fraud and unauthorized transactions.

• Faster transactions: Virtual cards enable quick and easy payments, streamlining your procurement process and improving cash flow.

• Revenue-generating opportunities: Many virtual card programs offer rebate opportunities, allowing you to earn rewards on your purchases.

By switching to virtual cards, you can achieve significant efficiency savings and find new opportunities to optimize your business operations.

4. Use Big Data to better understand your business finances

Before you can control your company’s spending, you have to understand it. While the purchase of critical materials is top-of-mind for most businesses, indirect costs like travel, office supplies, and out-of-pocket expenses are often left unmonitored, resulting in overspending.

Analytics and reporting shows you where your company spends money, on what and with which vendors. A deeper dive reveals outliers, variances and specific categories for a detailed picture of business expenses. Identify cost-saving opportunities, rein in out-of-policy expenses and target categories for strategic sourcing.

5. Use mobile wallets and apps for more convenience

As with most digital solutions there are efficiencies and cost savings, but mobile efficiencies are magnified by the digital solution in the palm of your hand. While there are many mobile solutions that save time and money, in the payment sector that generally means managing bank accounts and funds. Here are a few of the functions that a mobile app or mobile wallet can provide:

• Get real-time card balances and recent transaction details
• Transfer funds from within the account or to external accounts
• Register and deposit checks
• Tap-to-pay convenience

What we are quickly learning is that in order to ease the world of complex business payments, digital is the answer and is providing more than just a way to cut costs. These five solutions work to save money while simultaneously enhancing efficiencies, driving profitability and strengthening the financial supply chain for companies of all sizes.

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

• Your guide to virtual card rebates
• Current trends in finance
• Accounts payables: Terms you need to know

Learn more about how ĚÇĐÄVlogpayment solutions can be tailored to your business, so you can accelerate and streamline operations while creating lasting growth and success for your organization.

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 legal counsel, tax, and investment advisers.

Editorial note: This article was originally published on March 27, 2018, and has been updated for this publication.

Sources:

The post 5 ways to cut business costs and boost efficiency appeared first on ĚÇĐÄVlog..

Want help choosing the right payment solution for your business?

to compare options, see how virtual cards stack up, and find the best fit for your accounts receivable and payable workflow

Why is AP automation important? 

AP automation streamlines the entire invoice-to-payment cycle, potentially reducing mistakes and hands-on tasks for your AP team. Automation cuts down on the need for manual data entry, which is notorious for errors. This not only saves time but also enhances the overall reliability of financial data. 

Moreover, with automated approval workflows, businesses can ensure compliance and reduce the likelihood of fraudulent activities. The efficiency gained through AP automation translates into tangible cost savings. 

Who benefits from AP automation?

AP automation is not just about streamlining your AP department; the benefits of AP automation create a win-win scenario. Customers, organization leadership, and service teams can feel the benefits of enhanced data accuracy. Customers, for example, may experience quicker response times and enhanced service. 

The precision in financial data and resulting cost savings empower companies to reinvest in the entire organizational ecosystem. But this isn’t just about efficiency gains; it’s about creating an environment where every interaction, from invoicing to support, is seamless and customer-focused.Ěý

What are the benefits of AP automation?

Accounts payable automation can help standardize the way your enterprise handles invoices, purchase orders, and payments. What is the advantage of standardization?

Save time and money 

Perhaps the most important advantage of standardization is that it enables a more streamlined process. Full automation allows organizations to cut costs and reduce the occurrence of errors, enabling mid-size companies to achieve greater accuracy and efficiency in process management compared to those with partial or no automation.Ěý

Account payable automation can dramatically reduce the time spent on manual invoice processing. With automated systems in place, they can process high volumes of transactions swiftly, leading to improved data availability and insights. This precision is particularly crucial in financial reporting and compliance, where inaccuracies can result in substantial issues, including regulatory penalties.

Businesses can then take advantage of early payment discounts. This not only strengthens relationships with suppliers, but also translates into direct cost savings, optimizing cash flow management. 

Vendor satisfaction 

Compliance is huge. AP automation systems ensure that payments are processed efficiently and on time. This reliability in payment cycles enhances the vendor’s cash flow predictability, allowing them to plan and manage their finances more effectively. Consequently, vendors are more likely to prioritize and continue working with businesses that consistently meet their payment obligations. 

Automated systems also excel at identifying discrepancies in invoices promptly. This ensures that any issues are addressed and resolved promptly, preventing delays in payments and reducing the likelihood of disputes with vendors. 

Reduce risk and error

One of the advantages of AP automation lies in the ability to minimize the inherent risks and errors associated with manual accounts payable processes. Manual processes are susceptible to fraudulent activities, which could include:

• Invoice manipulation 
• Unauthorized payments
• Collusion and kickbacks

According to PYMNTS, companies were than average to feel very confident in their fraud prevention with fully automated AP processes. 

Automated systems use advanced algorithms to validate and cross-reference information, ensuring accuracy. This minimizes the risk of overpayments or duplicate payments and enhances the reliability of financial records. 

Improved cash management

In many organizations, accounts payable is the second-largest area of cash outflow (after payroll expenses). Automating accounts payable lets you define cash flow objectives and manage the flow of cash through your system more efficiently and effectively. This results in increased accuracy for cash forecasting and the ability to create richer financial planning models.

The combination of AP automation and rebate optimization transforms accounts payable into a proactive contributor to cash flow management. By leveraging early payment discounts and negotiating advantageous terms with vendors, businesses can unlock hidden financial benefits, reinforcing the importance of adopting AP automation as a comprehensive financial strategy.Ěý

Improved data analysis and strategic planning: 

Accounts payable automation, especially when it integrates with your other business technology solutions, provides you with a depth of business intelligence that can be used for other business processes such as working capital optimization and supplier performance management.

AP automation rightly takes a seat at the table regarding your overall business strategy. It helps drive collaboration between multiple departments within your organization, contributing to a more holistic way of handling procurement, supplier performance management, and financial forecasting.

What opportunities exist thanks to AP automation?

While automation may appear to be a “set-it-and-forget-it” investment, AP automation can bring dynamic change to your business. Automation tools can scale alongside your business, allowing continuous monitoring of their effectiveness. The data they provide not only keeps you informed but also offers valuable insights to grow your business. Rather than introducing new challenges during expansion, automation ensures a consistent output, allowing scalability and stress-free growth.

How can I identify AP automation opportunities?

Consider for a moment what your current accounts payable workflows involve. At a bare minimum, your accounts payable department:

• Receives invoices in a variety of formats from multiple vendors.
• Reconciles those invoices with your internal purchase order system or a similar tracking mechanism.
• Enters invoices into your payables system, tying them to the corresponding purchase order.
• Generates a vendor payment for the invoice.

Though it may seem simple enough, this process is often fraught with difficulty. At best, it is a time- and labor-intensive process. At worst, it is a dilemma of bottlenecked processes.

Careful and honest analysis of your current AP processes might reveal significant inefficiencies that accounts payable automation can easily address.

What should you look for from an AP automation solution?

When it comes to an AP automation solution for your business, it is important to consider many factors before making a decision. Some things you should consider are: 

• A simple user interface for AP staff and approvers 
• A partner who is versed in my ERP and other systems I need in my business 
• Ensuring a payments technology system that is compatible with mobile and off-site teams 
• A system that is seamless and scalable — both nationally and globally
• Wholly owned and cloud-first technology platform
• Issuing, compliance, and funding capabilities
• Deep payments expertise in virtual card, chargebacks, and product usage
• Broad network of accepting suppliers, and continuously adding more

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

• Your guide to virtual card rebates
• Tips to boost your construction company’s bottom line
• Accounts payables: Terms you need to know

Learn more about how ĚÇĐÄVlogpayment solutions can be tailored to your business, so you can accelerate and streamline operations while creating lasting growth and success for your organization.

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 legal counsel, tax, and investment advisers.

Editorial note: This article was originally published on March 7, 2024, and has been updated for this publication.

The post The benefits of automating your accounts payable process appeared first on ĚÇĐÄVlog..

1. Centralize and automate AP functions

Modern AP functions shouldn’t rely on spreadsheets and manual data entry. Instead, update your system by centralizing and automating AP tasks. This means consolidating your AP activities to reduce manual work, making the process faster, more accurate, and easier to manage. Automation can help reduce repetitive data entry, eliminate errors, and ensure timely payments. Find an AP automation solution that can make your processes faster and allow your team to focus on more strategic tasks.

2. Implement a three-way matching process

Preventing errors and fraud starts with implementing a . This involves verifying invoices against both purchase orders and receiving reports to ensure all three documents align. Matching these documents not only strengthens financial controls but also catches discrepancies early, saving time and money. It’s a straightforward step that can prevent headaches and costly mistakes.

3. Set clear payment terms

Don’t leave your suppliers guessing. Misunderstood payment terms are a common cause of friction between businesses and suppliers. To avoid confusion and late fees, be clear about your payment terms from the start. If possible, offer suppliers early payment options in exchange for a discount. This arrangement benefits both sides: Suppliers gain faster access to cash, while you may negotiate reduced costs on materials or services.

4. Use virtual cards for faster, secure transactions

Virtual cards are an increasingly popular payment choice for AP teams due to their added security and efficiency. These digital cards allow you to make payments quickly, set spending limits, and track transactions in real-time, reducing the risk of fraud. ĚÇĐÄVlogoffers virtual card solutions that cater to different business needs, giving you control over spending while streamlining payments for smoother AP management.

5. Implement a vendor onboarding process

Bringing new suppliers on board can create bottlenecks if not managed well. In order to simplify the process it’s important to have a structured vendor onboarding process that includes collecting essential information, verifying supplier credentials, and establishing payment terms. An online vendor portal can simplify this, making it easy for new suppliers to join and stay informed. WEX’s supplier enablement services have successfully onboarded millions of suppliers, helping businesses gain visibility into supplier payments and improve overall payment efficiency.

6. Monitor and analyze payment data

Your payment data holds valuable insights into your AP performance. By regularly reviewing this data, you can identify trends, spot inefficiencies, and detect any potential fraud risks. Use analytics tools to track payment trends, identify areas for improvement, and detect potential fraud. ĚÇĐÄVlogcan help provide valuable insights into your payment processes.

7. Provide ongoing training for your AP team

Make sure your AP team is well-trained and knowledgeable about your processes and the latest technologies. Consider providing ongoing training and development opportunities to keep them up-to-date.

8. Consider outsourcing to increase efficiency

If handling AP in-house is overwhelming your team, consider outsourcing some or all of the function to a specialized provider. Outsourcing frees up your team to focus on core business functions while experts handle the details. Providers that offer AP services can bring industry expertise and advanced technology to reduce time spent on processing invoices and reconciliation.

9. Review and improve

AP processes should not be static. Schedule regular reviews to assess current practices and pinpoint areas for improvement. With constant advancements in technology, it’s wise to stay updated on the latest trends and tools that could further enhance your process. An occasional overhaul, even of a well-oiled AP system, can reveal new efficiencies and keep your business competitive.

10. Build strong supplier relationships

Reliable supplier relationships are key to smooth AP operations. Regular communication, transparency, and timely payments build trust and can lead to more favorable terms or flexible payment arrangements. When suppliers see that you’re dependable, they’re more likely to prioritize your business, making the AP process smoother and more predictable.

Streamlining your AP process isn’t just about saving time – it’s about improving accuracy, building better supplier relationships, and ultimately contributing to the financial health of your business. By following these best practices and leveraging technology, you can transform accounts payable from a back-office function into a strategic asset.

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?

Learn more about how ĚÇĐÄVlogpayment solutions can be tailored to your business, so you can accelerate and streamline operations while creating lasting growth and success for your organization.

Stay up to date on the latest in business payments by subscribing to our blog! Simply hit the “Subscribe” 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 or tax advice. For legal or tax advice, you should consult your own legal counsel, tax, and investment advisers.

Editorial note: This article was originally published on April 22, 2015 and has been updated for this publication.

The post 10 ways to make your AP process hassle-free appeared first on ĚÇĐÄVlog..

Local currencies

Different rates, currencies, and conversions can make it even more challenging for new and existing processors to do business in multiple countries. These intricacies can significantly impact operational efficiency and financial stability, and the diversity in currencies, rates, and conversion processes can be overwhelming. 

It is important to understand that , meaning their values constantly change depending on economic factors including inflation, as well as supply and demand. Therefore, it may be ideal to hire local experts to take on these complexities or outsource to a third party.

Card schemes

Understanding card schemes wherever you are doing business is always a key factor in efficient payment processes. Globally, Mastercard and Visa are the two largest card schemes. . However, in some countries, you may need to understand the card schemes that are unique to that country. It is always a good idea to ask yourself, “What is the easiest way for your customer to pay and for you to reconcile that payment?” 

Local regulations

When entering new and emerging countries, there are new and unique regulations presented. This can create headaches for your finance teams. Be aware of the following: 

• Taxes: Some of the most exciting global markets for expansion, such as Brazil, India, and Mexico, come bundled with intricate tax structures. European counterparts present no exemption from this complexity.
• Regional restrictions: The laws and regulations impacting payments introduce rapid changes. This poses obstacles for payment processors and providers unfamiliar with the intricacies of processing payments in specific regions.
• Statutory and regulatory concerns: Aligning data privacy and security practices with country-specific regulations is crucial. Non-compliance penalties are severe, with additional requirements like PCI DSS adding to the regulatory complications.

Supplier dynamics

The ever-present threat of fraud, and the growing dominance of e-commerce, makes it crucial to strike the right balance between these elements for OTAs expanding into diverse markets. With nearly 20% of all attempted transactions in the travel industry identified as a fraud attack, according to , fraud is a real risk that needs to be accounted for when entering emerging markets.Ěý

Another key component to think about when you have international customers is billing and payments related questions from customers in different languages and time zones. The more geographies you move into, the more complex and time-consuming answering these questions can get. Staying informed about the evolving trends and consumer preferences in each region will position you to make informed decisions and navigate the complex payment landscape effectively.

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 legal counsel, tax and investment advisers. 

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