Main Benefits of Accepting P-cards As A Seller

As businesses transition into a digital age, they often find a high price for processing business-to-business transactions. This is because whenever employees make a credit card purchase, there are several steps involved to process and authorize the purchase.

For a cost-effective business model, this can be an extensive experience as it takes longer for you to receive funds. This is why a P-card may be a great solution for you as a seller and can help reduce the time and cost of purchases.

Main Benefits of Accepting P-cards As A Seller

A P-card will help make the payment process more effective while helping you to maintain and track your business expenses with more ease. P-cards provide efficiency and are an enhanced payment system in comparison to traditional credit card processing payment models.

How Do They Work?

P-cards allow employees of the purchasing company to make payments on their company’s behalf. They still have to follow company guidelines when making purchases, but do not have to fill out requisition forms for every single purchase.

This way, employees can make charges to the P-card for smaller purchases such as office items and other necessities.

Price

It is estimated that companies save $63 per transaction with P-cards. This means that there is a savings rate of 55% to 80% compared to the traditional purchasing approach. There is not only an increase in flexibility but also great leaps in cost reduction.

With P-cards, your customers can receive supplier discounts and reduce the amount of staff required in financial departments. This also gets rid of the need for on-hand cash. Customer satisfaction increases, making them more willing to work with you.

Supplier Benefits

There is better cash flow because funds can be electronically deposited immediately, instead of having to wait two to seven days for purchases to transfer over.

There are fewer background processes required, which include a reduction in your need for invoices, collections, and mailing letters. This could mean less staff is necessary, saving your company’s resources.

Simplicity

The P-card improves the efficiency of making purchases. Companies often replace writing checks with P-cards. They can enhance their payment systems by making them automatic to suppliers. 

Employees purchasing from you can save on small or large purchases and send you the funds much quicker. You don’t have to send invoices for late payments or run to collections for overdue bills.

Best Practices for Purchasing Cards

P-card purchases go through four steps:

Ordering Supplies

Your customer will shop for goods, then place an order. Once the order has been placed with the P-card, they keep a receipt of it.

Supplier Processing

You receive the order and then ship the requested items. You then charge the P-card and receive the payment from the merchant acquirer.

Receiving Goods

You receive the goods at their warehouse. You then deliver the goods to your company.

Review

The purchasing employee reviews the shipment. They will keep the packing list until the transactions have been completely reviewed for accuracy.

Their company manager may conduct a secondary review and approve the purchase. They then keep documentation of the P-card retention.

Learn More On How Purchasing Cards Can Help You

When you decide it is time to improve the payment process for your company, you can request more information on accepting P-card payments. Learn how this approach can amplify efficiency and progress.

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