Benefits & Comparisons
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How are ePayables Similar to Traditional P-Cards?
Like P-Cards, ePayables utilize the card networks and related card infrastructure (“card rails”). There are also some shared benefits between the two.
The end-user organization:
- gains process efficiencies (but more so for P-Cards)
- might be able to reduce AP staff
- pays its issuer/provider monthly, at a minimum, for all transactions
- is usually offered rebate incentives
- has access to robust reporting through the provider
- does not need to complete federal 1099 reporting
Suppliers:
- charge an account number (for P-Cards and, within the realm of ePayables, Virtual Cards)
- receive guaranteed payments electronically
- are typically paid more quickly than with checks
- pay a fee related to acceptance
How are ePayables Different than Traditional P-Cards?
With ePayables, the end-user organization:
- does not issue cards to employees
- targets different purchases/suppliers
- utilizes an invoice-based process; with P-Cards, invoices should usually be omitted
- has more steps in the purchase-to-pay (P2P) process
- gains more control, including the payment timing to suppliers and elimination of duplicate charges, due to how the solutions are designed
- experiences little to no fraud
Suppliers:
- provide an invoice
- must wait for the end-user to approve the invoice and initiate payment; with P-Cards, they can charge a card upon order fulfillment
- might not need to process a transaction; see how suppliers get paid
- experience fewer disputes and chargebacks since payments are based on approved invoices
ePayables solutions offer increased control for buyers, and essentially eliminate disputed transactions and chargebacks for suppliers.
Access additional content on ePayables.
How Do Virtual Cards Differ from Traditional P-Cards?
Virtual Cards are associated with ePayables pull payments. Suppliers must charge a designated card account number like they do for P-Card payments, but there are distinct differences.
Each month, a P-Card can accommodate multiple transactions from various suppliers, up to the card’s designated spend limit. A supplier can charge the P-Card at any time, as long as there is available limit.
With Virtual Cards, there is no monthly/cycle spend limit. By design, a Virtual Card is intended to accommodate one invoice, or a collective total representing a batch of invoices, from one supplier. A Virtual Card has no available limit (the supplier cannot charge the card account) until the end-user organization approves the invoice(s) and initiates payment for the total amount.