The key to this process is a new twist on traditional credit card-based payments. This technology now allows card-based payments to be made through a user-friendly software interface that automatically steers payments to an organization's vendors. The process utilizes the Visa and MasterCard networks to transfer payments to vendors' bank accounts - quickly and exceptionally securely, thanks to single-use ghost account (SUGA) technology.

Reduce Expenses, Increase Revenue

The most significant benefits to an organization that adopts virtual card technology are rooted in the expense-cutting and revenue-generating features of this process.

The reduction in expense results from the seamless interface between a virtual payments application and an existing ERP or accounting system. That means a significant reduction in manual accounting processes, as payments are automatically recorded upon acceptance of the payment by the vendor. A reduction in manual processing means less errors and less re-work; it also means reduced paper costs. If an organization transitions from a payment process that is majority check-based to one that is powered by virtual card technology, the savings realized will be even more significant.

Virtual card is also a revenue generator, thanks to a rebate paid on every virtual card transaction. When you pay your vendors who already accept credit cards with a virtual card, the fees they pay to accept those cards come back in part to you, in the form of a quarterly rebate. Simply put, you get paid by paying your bills.

The Bottom Line

Virtual card is a simple concept with extraordinary results. Organizations looking to get more efficiency and effectiveness out of their internal processes and boost cost-savings can tap virtual card technology to revolutionize their AP process, reduce expenses and access hidden revenue. With no up-front investment, this automated alternative to ACH and checks is an unparalleled means for organizations to do much more with less.