Picking the Perfect Payment Method: How CFOs can leverage expense payment methods to foster collaboration and improve efficiency at their company.

Picking the Perfect Payment Method: How CFOs can leverage expense payment methods to foster collaboration and improve efficiency at their company.

With so many corporate payment options available today, picking the right method for your business can be a challenge with lasting impact. While corporate credit cards have long been the go-to choice for companies with business travelers because of their ease of reconciliation, alternative payment methods are increasing in popularity as technology advances.

The Power of Corporate Cards
Corporate cards offer an easy way to consolidate statements and gain visibility into business travelers spending, while also taking advantage of any rebates and special pricing available to the company. With more visibility into expense spending, a company can negotiate better rates as they know the volume of business they provide a vendor while also seeing any gaps in the service. In most cases, this is the simple choice as the systems are in place to take full advantage of the payment method. However, there are plenty of cases where non-corporate payment methods are the right choice.

Questioning which payment method is right for your company? Download our whitepaper now for example usage and best-practices.

Non-corporate expense payment methods such as cash, personal cards, cash advances and supplier invoices are more commonly used for meals, ground transportation, and hotels because of the lower value of the purchase and ease of use for the traveler. The risk with these methods of payments varies from increased risk of fraud, to lower visibility of spend data which both negatively impact the business.
One benefit for companies allowing employees to use their personal card for expenses is the psychology that affects their spending, since the employee’s own money is on the line with each expense, they’re spending will more likely align with company policy.

The Rise of Virtual Credit Cards
Virtual cards have been around for nearly 20 years, but only recently gained interest from business travelers as a payment method. Virtual cards initially suffered limitations like requiring a faxed authorization prior to use at some businesses, which stunted their adoption by organizations and business travelers. As the technology improved, these limitations dropped away allowing companies to use virtual cards to pay for things like transportation and accommodations where the cost is fixed.
While corporate and non-corporate are still incredibly popular, these methods have their limitations in certain circumstances. For example, if a job candidate is traveling to company headquarters for an interview, corporate cards won’t cut it from a liability and visibility standpoint, let alone in terms of enforcing company expense policy. This makes a great case for virtual cards to be used for a one-time transaction where the expense is linked back to accounting seamlessly.

Helping You Select the Right Payment Method
Since it can be so challenging to choose the right payment method for your company, we’ve partnered with CFO Publishing to help you make the right choice. In this whitepaper you’ll learn:
  • Which expense payment methods are transitioning to electronic options for faster and more automated settlement, as well as greater control and more robust reporting.
  • Why cash isn’t disappearing, but mobile payment options and blockchain will shape the future of expense reimbursement and expense management reporting.
  • How to align company policy with business traveler behavior to drive more transactions to their preferred payment methods.
  • The pros and cons behind the top-three corporate payment methods.
Download our latest whitepaper, a CFOs Guide to Expense Payment Methods, and let us help you make the right payment choice for your company.