Lost in the noise of the incredible growth Virtual Cards are experiencing in the B2B Payments space is the high fees that suppliers incur – ~2.5% per transaction. The benefits of Virtual Cards are very clear and real for Buyers who pay using a Virtual Card, and a combination of Buyers and Virtual Card providers have been pushing suppliers HARD to accept card payments, driving growth. Much less clear through are the benefits for suppliers who receive payment by Virtual card.
Some advice on ways suppliers can either reduce the cost of card acceptance or generate some benefit from accepting cards:
1. Automatically pass Level II/Level III data with each credit card transaction to qualify for more competitive interchange rates
2. Waive early pay discounts on invoices when a credit card is used
3. Limit credit card acceptance to within 10 days after an invoice issued to encourage faster payments
4. Mandate paperless invoicing for customers who would like to pay with a credit card
BetterTerms [add link to betterterms] helps you find out what you should actually be paying to get paid!
Leave A Comment