Bank Transfer vs Virtual Credit Cards
A comparison
Need to maintain, update and secure suppliers’ bank account information
Funds withdrawn on date of payment
Virtual Credit Cards
Limited data capture makes payment reconciliation and reporting challenging
No maintenance required
Flexible payment timing and terms
Detailed reporting brings payment transparency and empowers future negotiations
User-defined controls (transaction value, timeframe etc.) internal workflow process
Working capital
Control and security
Data and reporting
Bank Transfer
Comparison: Bank transfer vs. virtual credit cards Benefits for buyers
Bank transfer is a well - established payment method in Europe. It is a relatively efficient, low cost way for companies to pay each other. But virtual credit cards can offer real benefits to both buyers and suppliers.
Supplier Database maintenance
Need to maintain, update and secure suppliers’ bank account information
Bank Transfer & Virtual Cards – A comparison
Internal
2
Internal
5
3
Virtual cards offer enriched data to ease reconciliation, with one central statement containing all transactions
Virtual cards can be generated swiftly on - demand for a specific purpose whilst going through an outlined approval process
Reversing transactions on virtual cards is simpler
Virtual cards can remove the need to register suppliers for payment via bank transfer and are designed with security in mind
Reconciliation of bank transfer payments
Benefits
Reconciliation of bank transfer payments
Balancing need for security with process efficiency
No protection / charge - back option with bank transfer
Cost of onboarding suppliers for one - time purchases
4
Single - use virtual cards are designed to pay one invoice – making it easier to match invoice
3
2
1
Bank Transfer & Virtual Cards – A comparison
Benefits
Challenges
Process efficiency
Internal
Challenges
Benefits
Reduce payment processing costs as fewer resources are needed
Support opportunities to earn early payment discounts
Reduce cost of capital
Optimised cash flow
Increase in days payable outstanding (DPO) with interest free period up to 58 days
Finding efficiencies to save time and money
Finding alternative sources of capital
Financial efficiency
Bank Transfer & Virtual Cards – A comparison
4
Benefits
Challenges
Benefits for all your internal stakeholders
Bank Transfer & Virtual Cards – A comparison
Internal
5
- A simple, authorized method of payment
- Ability to quickly create a virtual card on demand
- Only accessible to approved users
- No need for (advance) payment with a personal credit card
Employee
- Early payment discounts become possible
- Each card can be approved, maintaining control and a paper trail
Purchasing
- No time - consuming processing of individual invoices
- Easy integration into existing finance and controlling systems
- Company - specific information facilitates the allocation of expenses via automated reconciliation
- Meaningful reports support decision-making processes
Finance/Account Payable
- Improved cash flow through extended payment terms
Treasury
Bank Transfer
Prepaid Cards
Corporate Cards
AirPlus Virtual Card Procurement
Real - time payment
Improved cash flow from payment deferral (replacing factoring)
Reconciliation through data enrichment
Better control through individualized card settings per purchase (credit limit,validity, currency)
No bank charges
Bank Transfer & Virtual Cards – A comparison
Internal
6
Comparison of popular payment methods
Available
Not available
Depends on issues
