December 20189standard accounts payable process. Like a typical credit card, each virtual card number has a standard 16-digit number, expiration date, and 3-digit security code for seamless transactions. However, one of the key differences between a typical credit card and a virtual card is the ability to set each virtual card number with a set of controls. The controls lock down potential misuse or fraud, ensuring the appropriate use by the supplier and capture custom data to assist with analysis, allocation, and reconciliations of payments. Virtual card accounts can be generated through two methods. First, there is the standard pull method which requires suppliers to use their point of sale terminals to process the transaction. Secondly, there is the push method also known as STP which delivers the payment directly into the supplier's bank account. STP refers to the B2B payment process where payment instructions are initiated by clients and settle without active supplier involvement. Instead of the supplier receiving the virtual card number via email and using its point of sale terminal to process the payment, the payment is sent directly into the supplier's bank account. This process eliminates the supplier's need to manually enter card details or handle PCI (Payment Card Industry) data. Some key buyer benefits of STP include, the ability to automate all payments, expand card acceptance, manage the precise timing of payments, and improve reconciliation. With that said, supplier acceptance is crucial to a successful virtual card account program. For STP, clients should target suppliers who prefer automated payments, accept large volumes of payments, may not accept virtual card numbers via email, or are concerned about security. Another factor to consider relates to interchange rates as it is often difficult for suppliers to determine which rate they ultimately qualify for accepting card payments. This is due to the fact that rates are dependent on the type of transaction, the amount of the transaction, as well as the data that is submitted through the process. However, proprietary interchange rate structures are gaining popularity, making it simple and easy for suppliers to understand and know what fees they will pay for each virtual card account transaction. This trend allows a buyer to continue to earn rebates while associated suppliers benefit from reduced fees. With virtual cards on the rise in the payment's industry today, it is time to put down your pen, recycle your checks and join the automated payments movement. BCThe pace of virtual card adoption is accelerating quickly with over 60 percent of Fortune 500 Companies forecasted to have a program in place by 2019
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