SUGAs have been around for about 10 to 15 years, but they haven’t gained widespread adoption either because companies don’t know about them, or they have misconceptions about how to work with them. It’s actually pretty easy and there are a lot of benefits, especially for smaller suppliers.
P-cards vs. V-cards
Calling people on the phone is also a cumbersome, error-prone way to pay invoices. There’s a lot of time and manual effort that has to go into reconciliation and dealing with discrepancies. P-cards should really only be used for giving employees easy access to buy low cost items.
Ghost in the cloud
Low IT impact
The bigger misconception of buyers is that suppliers won’t accept virtual cards. In reality, in a well-run electronic payments program, buyers find they can make about 20 to 25 percent of payments by virtual card.
Suppliers want it
SUGAs can help buyers streamline processing and dramatically reduce the costs associated with paper processing. According to the Goldman report, the cost to process a card payment is under $3, before subtracting the revenue that the card rebate generates for the buyer.
Have no fear
Checks are slowly dying in the B2B world. For now, most suppliers accept them, but that doesn’t mean they prefer them. For many, SUGAs are the most desirable way to pay due to security, accuracy, efficiency, and rebates. Given their advantages to buyers, optimizing the “ghost in the cloud” should be a key part of any electronic payments program.
About the Author
Mike is the Vice President of Sales, Southwest Region at Nvoicepay. He is an accomplished payment industry expert with more than five years experience in delivering scalable payment solutions.More Content by Mike Fortmann