Do You Know What Your Payment Method Costs?

Do You Know What Your Payment Method Costs?

Corporate credit cards are a tried and true payment form that companies have been relying on for years. And with the increase in business travel, payment methods that can track corporate expenses are absolutely critical, and corporate credit cards still fill the need perfectly. In fact, according to the 2017 Business Travel Payments Study from the Global Business Travel Association (GBTA) and AirPlus International, 9 out of 10 travel programs use corporate cards as their primary payment method for business travel.

But as is often the case, the rise of technology brings along new options for businesses and travelers alike. For instance, virtual cards have become used by a greater number of companies due to the convenience, accessibility and cost. But, while these payment methods are growing in popularity, the corporate card still reigns supreme in the payment hierarchy. Which leads to the question, how much do you know about your corporate card program?

Recent data from the GBTA Foundation shows there are a lot of unknowns when it comes to corporate card rebates and fees. In the study, 92 percent of respondents indicated they had rebate agreements in place with their corporate card providers, but 22 percent were unsure if they were actually receiving the full amount of the rebate.

There also seemed to be some confusion regarding the fees associated with corporate cards. Shockingly, 23 percent of travel managers weren't sure if their cards had late fees or interest charges. Furthermore, 21 percent of managers did not know if there was a fee for issuing a card or replacing a card, while 25 percent were unsure if there were fees for card renewals. Despite using these payment methods frequently, there is still a significant knowledge gap within a lot of companies regarding the true costs of corporate cards.

The focus on profitability and growing revenues is at the forefront of all businesses. Not knowing the answer to some of these more detail specific questions regarding payment methods can't be ignored. And while corporate cards and new, emerging payment forms offer opportunities for better tracking and accounting, you have to ask yourself, are there better options for your company? Oftentimes, different teams will oversee negotiating payment contracts while other internal teams are tasked with managing them. So, remember that it's important to get your teams together to make sure everyone has a firm grasp on the true cost of your payment methods.

If you would like to learn how Certify can help you get control of your expense management, click here. Want to get in touch with us, feel free to drop us a line here.