If your business has been introduced to the prospect of digital payments for vendors, but have no idea what the process involves, you are in the right place. Typically digital payments, and specifically virtual card payments, are orchestrated through a payment platform that can directly integrate with your accounting ERP software.
No matter the business industry, every type of business can benefit from virtual card payments in their integrated payables stack. Your suppliers receive payment faster and you, the buyer, have more control over the payment, enhanced security, and generate revenue for every payment sent.
Overview of the Payment Process
The process typically starts when the virtual card experts analyze your supplier list to find out who is already accepting payments via virtual card, typically done during a supplier analysis. This is the beginning of the digital payments transition.
Transitioning your suppliers to virtual card payments is as simple as asking each of them one-by-one. Fortunately, Singe Payables provides this effort for you at no cost through our Supplier Enrollment and Enablement Team.
When you’re ready to make payments to your suppliers, you will simply send a payment file to Singe outlining who to pay and how much, and Singe Payables will generate the virtual card for payment. The virtual card is sent through a secure email link that will expire after 90 days if no payment transaction is run. Once that card is “virtually swiped”, payment is successful.
Fast, secure, easy.
Now if it’s details you want, below breaks it down into a few steps to create a more in-depth explanation for how Singe Payables, the virtual card experts, sets up and facilitates these payments. For industry specific term definitions, scroll to the bottom of the page here.
The 7 Steps for How a Virtual Card Payment ACTUALLY Pays Suppliers
Step 1 : Supplier List
The buyer signs the agreements to work with Singe Payables at a cost of $0 per month and a list of their suppliers are provided to the supplier enrollment team. The list includes information of active suppliers such as address, phone number, zip code, etc
Step 2 : Supplier Enrollment
Our highly experienced supplier enrollment & enablement (SEE) team will contact each supplier to discuss their preferred payment method and the value of accepting virtual cards for payment.
Every supplier campaign is completely individual - from the calling script to the contact method like email or phone. All details will be noted and documented in our platform. Suppliers that prefer virtual card payments will be enrolled in the payment portal, and once enrolled, we are ready to start payments to suppliers.
Step 3 : Payment File
It is time for digital payments. A payment file is provided to Singe Payables to include all outstanding payables - how much to pay and who is getting paid.
The payment file is likely a process your AP department currently does today for each check run since it occurs after invoice approvals. Once the report is uploaded into the Singe’s platform, it will initiate each of those payments on file.
The issuer, Singe Payables, generates a virtual card number, expiration date, and security code (CVV) that is associated with each specific payment amount and timeframe. We know the amount based on the report/file provided to Singe.
Step 4 : Funding the Payment
There are multiple options for funding methods that can best integrate into each business’s needs.
The simplest option is for Singe to debit your checking account the following day for the total amount in your uploaded payment file. However, we do offer additional options to increase float where we would wait until payments settle to pull funds from the client’s account (one day post settlement, seven days, etc).
Step 5 : Payment Sent
The card is not sent until the buyer initiates a payment through the online portal (as mentioned in Step 3),, so there is complete control over the payment.
Step 6 : Payment Successful
Once the payment is delivered to the supplier, the supplier will process the virtual card using their merchant terminal to receive the payment.
To assist reconciliation for you, Singe Payables sends a settlement report (daily/weekly/monthly) containing any payments that have been processed and providing details of the transaction - including the amount paid, the date/time of the transaction, the supplier's name, and any other information that you need.
Step 7 : Rebates
Each month you will receive a rebate payment from Singe Payables, which is calculated as a percentage of your monthly virtual card spending.
The higher the monthly spending that is able to be paid by virtual card, the greater the rebate payment provided by Singe Payables, turning your cost center into a revenue generator.
In Summary
Overall, the process of B2B virtual card payments enables businesses to make secure and efficient payments to their suppliers, while also providing detailed transaction information and simplified accounting processes. Payment digitization is a great tool to generate cost savings for both you and your suppliers.
Plus, it never hurts to receive some money back for the business to increase revenue for the month! Just as any other business, whether B2C or B2B, suppliers like credit card payments for the quick fund movement and a better rolling cash flow.
If you are interested in seeing how many of your current suppliers are accepting virtual payments, follow the button below to meet us for a free discussion.
For an ultra secure, quick, and revenue generating process, the introduction of integrated payables is an easy yes. Hopefully the 7 steps broke it down to be more digestible, but if not, we are always happy to answer more questions at Singe Payables, where business in personal.
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