As businesses look for the most secure way to pay, more and more are turning away from writing paper checks.
According to a recent report by the Association for Finance Professionals and J.P. Morgan, paper checks cost businesses more in fraud than any other payment method. The survey found that in a year that saw a record 73 percent of companies targeted for fraud, 7 out of ten said the fraudsters set their sights on paper checks.
At a time when the number of companies making B2B payments with checks is shrinking, these findings offer wholesalers yet another incentive to give their customers an alternative to paying with paper. According to the AFP report, three-quarters of organizations now use purchasing cards for procurement, up from 71 percent last year. As more companies begin paying with plastic instead of paper, accepting commercial card payments has become increasingly essential to staying competitive.
"Accepting commercial card payments has become increasingly essential to staying competitive."
A more secure alternative
One reason businesses have shifted toward commercial cards so quickly is their relative security compared to checks. According to the J.P. Morgan survey, commercial credit and debit cards were far less susceptible to fraud than paper checks. Even though 75 percent of companies say they use payment cards, according to the report, such payment methods account for just 20 percent of the total amount businesses lost to payment fraud last year — less than half of the cost of check fraud.
Companies looking to avoid costly fraud cases are now adopting purchasing cards in droves. To stay competitive, its important for wholesalers to adjust along with their customer base. To make sure you are properly equipped to appeal to buyers with new cards, integrate an electronic payment API into your merchant payment gateway.
At Vantage, we're committed to helping your company find the ideal payment solution. To learn more about our electronic B2B payment solutions, contact us today.