In today's fast-paced business environment, efficiency and security in payment processes are more crucial than ever.
Did you know that 81% of US businesses still pay AP vendor payments by paper check, even though it costs over $10 to process each check?
This method is not only expensive and time-consuming but also risky, with 56% of US companies affected by B2B payment fraud and 24% losing over $100,000.
Virtual cards offer a more secure, cost-effective solution for both you and your suppliers. If your vendors prefer traditional payment methods, here are some tips to help you convince them of the benefits of virtual cards.
Tips for Convincing Suppliers to Accept Virtual Card Payments
1. Identify Vendors Who Already Accept Virtual Cards
Your virtual card vendor likely has a list of suppliers who accept virtual cards. Cross-reference your supplier list with theirs, and then ask your remaining vendors if they accept virtual cards. Remember, it never hurts to ask.
2. Identify Which Suppliers You Have the Most Leverage With
Once you've identified which of your vendors already accept virtual card payments, it's time to decide which suppliers to target next.
Convincing a vendor to accept virtual cards and absorb a fee (e.g., 3%) is much easier when you have significant spend with them. Start by making a list of the suppliers you spend the most with, then focus on targeting these high-spend suppliers to convince them to accept virtual cards.
3. Communicate Early and Clearly
Start the conversation with your suppliers early. Give them ample time to understand the new payment method and its benefits.
Use clear, concise language to explain how the process works and why it is beneficial.
4. Highlight the Benefits
Emphasize how virtual card payments will benefit your suppliers. Focus on faster payments, increased security, and reduced administrative work.
5. Provide Support and Resources
Offer resources such as guides or FAQs to help suppliers understand the virtual card payment process. Be available to answer any questions or concerns they might have.
6. Be Prepared for Objections
Understand that some suppliers may have concerns or objections. Be ready to address these with well-thought-out responses.
7. Use a Script for Consistency
Having a consistent message can help in communicating effectively with all your suppliers. Check out the script in the following section for inspiration.
Sample Script for Convincing Suppliers to Accept Virtual Card Payments
Looking for the right words to tell your supplier you want to start paying with a virtual card? Look no further. Use the following script to state your case.
Hi [Vendor’s Name],
I hope this message finds you well. I’m [Your Name], [Your Position] at [Your Business]. We’ve been reviewing our payment processes to find more efficient ways to handle transactions, and we’ve decided to start using virtual cards for our vendor payments. I wanted to take a moment to explain the benefits of this new payment method and how it can benefit your business.
Key Benefits:
Faster Payments:
With virtual cards, payments are processed much faster than traditional methods like checks. This means you’ll receive your funds quicker, improving your cash flow and reducing the time spent waiting for payments.
Enhanced Security:
Virtual cards are designed with advanced security features. Each payment is made using a unique card number, significantly reducing the risk of fraud and unauthorized transactions. Your financial information is better protected with this method.
Improved Efficiency:
Virtual card payments simplify the reconciliation process. You’ll receive immediate confirmation of payment, along with detailed transaction data, making it easier to keep track of your accounts receivable.
Reduced Processing Costs:
By accepting virtual card payments, you can potentially reduce the costs associated with processing checks or managing wire transfers. This can result in lower administrative overhead and increased savings for your business.
Environmental Impact:
Moving to virtual cards helps reduce paper waste, contributing to more sustainable business practices. By accepting digital payments, you’re supporting environmentally-friendly initiatives and promoting a greener future.
How It Works:
We will send you a virtual card via a secure platform.
The card will contain a unique card number and a predetermined amount.
You process the payment just like you would with any other credit card.
Funds are transferred to your account promptly, and you receive an electronic record of the transaction.
We believe this transition to virtual cards will streamline our payment process and bring significant benefits to your business. I’d be happy to discuss this further and answer any questions you may have. We value our partnership and are committed to making this transition as smooth as possible for you.
Best regards,
[Your Name]
[Your Position]
[Your Contact Information]
[Your Business]
Addressing Potential Objections
While most suppliers will oblige your request, some suppliers may have concerns or follow up questions. Here are a few common objections to virtual card and how to address them:
"What about transaction fees?"
Explain how virtual cards can reduce overall processing costs compared to checks and wire transfers. Highlight potential savings vendors might experience. Acknowledge that there are fees associated with accepting virtual credit card payments, but emphasize that the overall cost savings and operational efficiencies gained can outweigh these fees.
"We prefer traditional payment methods."
Explain the benefits of faster payments and improved cash flow. Highlight the security advantages and potential cost savings.
"We're not familiar with virtual cards."
Offer resources and support to help them understand the process. Provide step-by-step guides and be available to assist with any questions.
"Is this secure?"
Emphasize the advanced security features of virtual cards, such as unique card numbers for each transaction, which reduce the risk of fraud.
By effectively communicating the benefits and addressing potential concerns, you can help your suppliers see the value of accepting virtual card payments. This transition not only streamlines your payment processes but also strengthens your business relationships by offering a more efficient and secure payment method.
Embrace Virtual Card Payments with Centime Credit Card
Centime Credit Card empowers finance teams with an innovative virtual card solution that streamlines supplier payments at scale and increases AP ROI. Centime’s one-stop-shop for B2B payments helps your team transition to virtual card payments, optimizing the entire invoicing-to-payment process and provides remarkable savings through cashback rebates.