Why Your Card Provider is Frustrated

Why did the Commercial Card account manager cross the road? Answer: To help their clients get to the other side. I use this version of the old chicken joke to illustrate a common hurdle for banks. They are often stuck assisting their clients with routine tasks that it leaves little time to work with them on program strategy and growth. Both parties lose out. As a former card program manager, I definitely understand frustrations that end-users might have regarding their card providers. However, I also see the other perspective. Keep reading to learn more, including action items for both providers and end-users to improve this crucial relationship.

End-user Clients

As I have asked in the past, are you a good client by taking advantage of the self-service technology offered by your provider? But it goes even deeper. If most of your time is consumed by routine tasks rather than program optimization, it is time to evaluate why and commit to a resolution. If, for example, you are constantly making temporary adjustments to limits or MCC restrictions, you should consider making permanent changes. If needy cardholders are a problem, then maybe your internal training should be revised. Look to your provider for insight.

  • Ask your account manager for tips on how to make your program management efforts more efficient. They typically have a keen bird’s-eye view of what could be plaguing your card program.

  • Be proactive about learning and using the technology available to you.

Providers

Providers want to deliver good customer service, but I will speak on their behalf by saying it needs to be worth something. If doing routine tasks for a client leads to the client growing their program, then there is some value. On the flip side are clients who can drain a provider’s resources while never getting close to realizing their program’s potential. I have to wonder whether such clients are worth retaining once the contract expires. Providers, to help clients help themselves:

  • Define up front the expectations of who does what, especially when/for what the client should use self-service technology.

  • Offer training and/or training materials on how to take full advantage of the technology features.

  • Suggest ways they might be able to free up some of their time for more strategic activities.

Final Thoughts

Providers can deliver valuable knowledge and support, but end-users need to be receptive. If end-users can take care of the simple things on their own, account managers can focus on helping their clients maximize the benefits of Commercial Cards. Both parties win.

Related Resource

Clients can deplete a provider’s resources, leaving little time to work on program strategy and growth.

Clients can deplete a provider’s resources, leaving little time to work on program strategy and growth.

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About the Author

Blog post author Lynn Larson, CPCP, is the founder of Recharged Education. With 20 years of Commercial Card experience, her mission is to make industry education readily accessible to all. Learn more…

Payments to the Card Issuer: Speed Up or Slow Down?

Has your organization made a thoughtful decision about the timing of payments to your card issuer? Does this deserve another look? There is more to it than not being late. For many organizations, revenue share (rebate) incentives are impacted by the speed of pay, also known as file turn. Even if this is not part of your contract, have you worked with your treasury/finance department to evaluate the benefit of paying the issuer quickly against the value of holding on to your cash longer? A recent survey by AP Now reveals the majority of organizations pay their Commercial Card issuer on a monthly basis soon after the cycle ends, but this is not the only option, as shown below. Nearly a quarter of the survey respondents wait as long as possible. Only 7% make payments more than monthly to increase their rebate.

What to Do

While every organization should ensure on-time payments to its card issuer, it is a best practice to identify the ideal timing to support your organization’s needs and goals. 

Review your contract to determine if speed of pay/file turn is part of the rebate calculation. If yes, where does your organization stand today? What would your rebate look like if your organization paid the issuer faster or more frequently? Evaluate different scenarios; for example, right after the cycle ends each month, twice per month, weekly, etc. Present your analysis to your management.

Regardless of your rebate incentives, consult with your treasury/finance team to determine the best payment strategy for your organization’s cash flow and overall financial position. Their opinion may also depend on interest rates, which can fluctuate, so it is worthwhile to revisit this topic from time to time.

As an added bonus, having a discussion with treasury/finance might lead to Commercial Card program expansion, such as the adoption of Virtual Cards to help extend float.

My Experience

I was fortunate to have worked for the Federal Reserve Bank. We could pursue the best possible rebate tier for speed of pay since cash flow was not an issue. However, to make this happen, I still had to figure out the right payment timing, which involved various calculations that took into account an average transaction age.

Finally, do not allow payments to your issuer to be delayed by cardholders’ reconciliation of transactions, which should be a separate process. Since your organization is required to pay in full by a certain date, waiting for cardholders to reconcile does not add value. The AP Practices Survey by AP Now shows that, unfortunately, 30% do wait. 

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About the Author

Blog post author Lynn Larson, CPCP, is the founder of Recharged Education. With 20 years of Commercial Card experience, her mission is to make industry education readily accessible to all. Learn more…

8 Questions to Help You Rate Your Card Provider

How would you describe your organization’s relationship with its Commercial Card provider? I have asked this question of end-users in the past and received diverse responses ranging from frustrated venting to glowing reports. Wherever you are at, a stellar relationship with the card provider is an important part of achieving and maintaining program success, while a poor relationship can drag it down. If you already have a service level agreement (SLA) with your provider, ensure you are using it regularly to evaluate their performance. Either way, following are questions to help you identify what is working well and what needs improvement.

Evaluation Questions 

Does your card provider:

  1. Express interest and a willingness to be an active part of your program? For example, are they willing to come onsite to meet with management, demonstrate technology, etc.?

  2. Return/acknowledge calls and emails in a timely manner (e.g., within a day or two)?

  3. Take appropriate action to resolve issues and get answers?

  4. Listen to what you say? For instance, listening attentively to learn more about your unique needs.

  5. Proactively communicate about upcoming changes that affect you, current issues, industry trends, etc.?

  6. Inform you about technology features and reports that could benefit your program?

  7. Suggest ways to make your program and payment strategy stronger?

  8. Offer program reviews and supplier on-boarding services?

What are your biggest frustrations? Schedule time with them to discuss your evaluation. They cannot fix something if they don’t know it is broken. Any such meetings should result in a clear action plan to which both parties agree.

To increase your chances of getting a high level of service from your card provider, begin by being a good customer.

To increase your chances of getting a high level of service from your card provider, begin by being a good customer.

Are You a Good Customer?

Even if your card provider has room for improvement in the customer service category, the other piece of the equation is your organization. Consider the following questions to determine how you rate as a customer.

Does your organization:

  • Have realistic expectations of the provider?

  • Clearly communicate any concerns?

  • Return calls and emails in a timely manner?

  • Take advantage of the offered technology, including self-service features?

  • Ask the provider how you can be a better customer?

A good provider/end-user relationship pays off. See a related blog post about a common card provider frustration. In the end, though, sometimes an organization just does not mesh well with a particular provider representative. You might need to try to a new/different relationship manager before you give up on the provider entirely. 

See also information about the request for proposal (RFP) process. If you plan to attend the NAPCP Commercial Card and Payment Conference next month, maximize your experience by meeting different providers.  

About the Author

Blog post author Lynn Larson, CPCP, is the founder of Recharged Education. With 20 years of Commercial Card experience, her mission is to make industry education readily accessible to all. Learn more…

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