Leave the Check Behind
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The document discusses the shift away from traditional checks in B2B transactions due to high fraud risks and transaction costs, emphasizing the benefits of adopting integrated payments platforms and virtual cards. Companies are encouraged to implement vendor enrollment programs and comprehensive campaign strategies to enhance electronic payment adoption. It highlights successful case studies where organizations significantly reduced processing costs and generated rebates by moving to virtual card payments.
Leave the Check Behind
- 2. Why are companies making the move? 2 Higher risk of fraud Potential for errors High transaction costs B2B checks rack up $25 billion in processing costs annually
- 3. Obstacles associated with migrating away from checks 3 Payment preferences Fear of fraud Loss of control Enrolling vendors Remittance information Bank details Hurdles
- 4. 4 How can you overcome the hurdles?
- 5. Vendor enrollment program Your A/P group Enhanced output Integrated payments platform Checks ACH Cards Wires Positive pay Email notifications Payment processing Vendor file Calling Email shots Letters Vendor analysis Campaign management Bank account management Vendor enrollment A/P staff Bank account maintenance Payment inquiries Card processing User maintenance Password resets Technical support Support center Integrated payments platform - Support center ERP A/P 5 Outsource to an integrated payments platform
- 6. Campaign design Vendor segmentation Reporting/ analytics Campaign execution Vendor response tracking Vendor enrollment Gain a customized campaign that is designed for you and your vendors Segment your vendors to drive the highest electronic adoption rates Review customized reports that detail your success and opportunities Use proven methods to mail, e-mail and call your vendors Rely on the phone to the widest range of vendors possible Receive ongoing communication regarding vendor enrollment adoption Comprehensive vendor enrollment program is key… Vendor segmentation Campaign execution Vendor response tracking Reporting/ analytics
- 7. 7 The move to virtual cards
- 8. Virtual cards are taking the lead 8 53%of organizations plan to increase use of cards for B2B transactions 55%of buyers indicate that they are more likely to select a supplier that accepts cards
- 9. T&E card Pcard One card Ghost card Single use virtual card ePayment option where a single-use number is generated for each invoice payment in the exact amount with a fixed expiration date Card number is securely delivered via an email or portal and is processed through vendors’ existing merchant terminal Simplified tracking and reconciliation of payments FIS’ program generates monthly rebates What exactly is a virtual card? 9
- 10. They already accept cards today They value you as a customer They want to maintain preferred supplier status They perceive their merchant account to be more secure Interchange is already part of their pricing strategy Why suppliers say, “Yes!” to virtual cards 10
- 11. 11 How has FIS helped other companies?
- 12. Zachry Industrial Inc. *Source: Fonction Crédit We have been able to migrate 24% of our payments to ACH and 7% to virtual cards, helping us reduce 100% of our monthly payments processing costs and generate annual rebates. 12
- 13. Russell Sigler *Source: Fonction Crédit Virtual card rebates have more than offset check printing costs and have allowed our AP department to generate revenue that goes directly to our bottom line. 13
- 14. We can create a tailored ROI for you. getinfo@fisglobal.com 14
- 15. ©2016 FIS and/or its subsidiaries. All Rights Reserved. FIS confidential and proprietary information.