For suppliers who don't accept commercial card payments, the reasons for resistance might seem straightforward: Your customers don't seem to mind, and you get to avoid paying interchange fees. While it may appear simple on the surface, this "if it ain't broke don't fix it" mentality can end up costing wholesalers considerably.
In fact, making the switch to accept commercial card payments can open new doors for B2B companies. Here are three reasons every wholesaler should start accepting purchasing cards today:
Faster payment cycles
Unlike paper checks, card payments can deposit to a merchant account much sooner. No longer forced to wait weeks or even months for invoices to paid and cash to hit their accounts, accounts receivable departments gain unprecedented flexibility.
If it turns out a customer can't pay for a purchase, commercial cards protect the seller. Rather than following up manually days or weeks after the fact, purchasing cards push that responsibility onto the bank. As PYMNTS.com puts it, "cards provide a sort of AR insurance for suppliers in the case of nonpayment."
"Commercial card interchange fees are often lower than wholesalers might expect."
From allowing easier mobile payments on the go to reducing their risk of fraud, businesses are quickly realizing the benefits of paying with commercial cards. As plastic becomes the preferred method of payment for new and growing enterprises, your company will miss out on new business opportunities if it continues to keep its doors closed to P-cards.
On top of all of these advantages, its important for wholesalers to realize that if accepted properly, commercial card interchange fees are often lower than they might expect. Businesses equipped with a Level 3 processing system can make sure every B2B purchase qualifies for the lowest possible interchange rate - potentially saving thousands on their bottom line every year. To learn more about the value of Level 3 credit card processing, contact Vantage today.