Virtual payments are on the rise. Between 2004 and 2016, as electronic payment technology matured, the percentage of B2B payments made by paper checkdecreased from more than eighty percent to just over fifty percent. Still, that’s more than half of all B2B invoices paid with paper checks, and there’s no excuse for it. Virtual payments offer so many benefits over checks that it’s time to ditch the paper and never look back.
Here are five reasons why you should stop paying supplier and vendor invoices with paper checks:
- They are expensive. If you’ve grown accustomed to the costs associated with issuing check payments, you might not even notice how high they really are. Paying your suppliers and vendors with virtual cards can dramatically lower transaction costs. Savings are not restricted to the cost of transactions, either – electronic payments require much less administration, lowering labor overhead, and can put rebate money back in your pocket every month.
- They are slow. Making a payment via paper check is slow. It doesn’t just take time for checks to clear, but it takes time to individually print, sign, address and stamp each check … you get the picture. Virtual cards pay your suppliers and vendors in just seconds, streamlining your payments system and providing a much faster, more efficient solution overall.
- They are less secure. No matter how well-regulated your internal systems are, you only have so much control over paper checks. The potential for mistakes or misuse is significant both before the check is issued and once the check leaves your premises. Electronic payments made by virtual card are highly secure and easily monitored with detailed records, making them much less susceptible to fraud and error.
- They are complicated. Okay, checks themselves aren’t that complicated – we all know how they work. However, in a business environment, getting a check printed, approved and signed can be. From the mail team up through the accounts payable department all the way to the CFO, as many as five or six people could touch every paper check you issue. Virtual cards eliminate this complexity, providing a simple, fast and efficient payment solution.
- They are bad for the environment. We all have a responsibility to reduce the amount of paper we use. Nowhere is this more important than on a corporate scale. If you need a reason to be environmentally friendly that impacts your bottom line, reducing paper waste can add to your organization’s green credentials and improve your marketing and brand image. Helping the planet should be a priority, of course, but there is benefit in going paperless for you, as well.
More and more organizations are making the transition from paper checks to virtual payments – is yours one of them? Find out if virtual cards are right for you!