As you work with your vendors on a day-to-day basis, take this opportunity to promote Virtual Payments. It is important that vendors know that Virtual Payments is the new preferred payment method for your company. Also, inform them that vendor contracts will now include information on the Virtual Payments program, so they can onboard before even receiving a payment. In addition, once they are enrolled, they become a Preferred Vendor.
You should also share the benefits that vendors are awarded, such as:
- Faster, more secure payment method (vendor doesn’t have to wait on a check to be mailed)
- Improved (reduced) Daily Sales Outstanding (DSO) as the invoice is paid faster and moved off the books
- Emailed Remittance Advice, a detailed receipt of the invoice that thoroughly summarizes the bill paid.
- Improved financial controls, since checks can be lost or stolen
- Guaranteed payment through the MasterCard or ComdataDirect networks
- Prompt settlement to help minimize payment delays, collection costs and disputes
- Detailed remittance information, including a list of invoices paid
- Web-based database for self-registration and information management
- Automated reminders to process outstanding payments
You may need to negotiate with some vendors, but you have several bargaining chips. For instance, you can extend check/ACH payment terms for vendors who will not accept Virtual Payments, and shorten payment terms for those that will accept Virtual Payments (for example, if payment terms are 30 days, agree to shorten the terms to 25 if the vendor will accept MasterCard). If the vendor says the electronic pay fees are too high, you could lower interchange fees or you could take advantage of the ComdataDirect network.
Remember, if you are not able to convince the vendor or they are hesitant to enroll, your Vendor Enrollment Team can provide options and incentives to help speed up enrollment.
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