Virtual Credit Card supplier payments are another arrow in your quiver

    Louis Green

    Supply chain finance programs offer a number of financial benefits and reduce supplier risk, but there’s a limit to how many suppliers can realistically participate in them. The same is true of dynamic discounting and other early payment programs. These products can only impact so many of your biggest suppliers. What about the rest?

    For companies seeking similar efficiencies further down in the supply chain, there’s another tool available for your small-to-medium suppliers: Virtual Credit Card.

    What is Virtual Credit Card (vCard)?

    VCard is a virtual electronic credit card solution tied to a single supplier payment, issued for a specific dollar amount. Supplier payment via virtual card eliminates the cost of paper check processing, reduces fraud, and speeds up supplier collection by 2-5 days, on average. It’s a great way to get more suppliers off of manual check processes and onto electronic, automated payments.

    What are the benefits of vCard?

    • Automate the payment and reconciliation process
    • Speed up supplier payments by 2-5 days
    • Eliminate paper check processing costs
    • Reduce risk of check fraud
    • Easy for suppliers to use with existing POS systems
    • No changes to existing A/P  systems or accounting processes

    Score a bulls-eye using electronic supplier payments

    In the spirit of the Rio Olympics, let’s think of vCard as another arrow in your quiver —another tool for expediting supplier payments and making your A/P department more efficient. vCard can impact the bulk of your suppliers in the middle of your supply chain, and it works seamlessly along other early payment solutions.

    Louis Green is the founder and CEO of Supplier Success, LLC. He is a nationally known expert in the fields of procurement, supply chain management, and supplier diversity.

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