Recently, I read in the Wall Street Journal about how half of U.S. businesses still rely on checks to pay their bills every month. As the head of the North America commercial payments group at MasterCard, that statistic didn’t surprise me.
What did catch my eye was the reporter’s claim that checks are easier to use and contain more information than many e-payment methods. Clearly, Mr. Monga did not consider commercial cards—so I’m taking this opportunity to share the top three reasons why using a commercial card versus other payment methods is better for businesses:
- Operate More Efficiently. As much as $74 can be saved on every transaction by using a commercial card when compared to the traditional purchase-order driven acquisition process. Through its use, businesses can eliminate the need to raise, send, receive and sign a purchase order; forget about managing the complexities of paper invoices; and do away with the expense of cutting checks. Even small businesses, through the MasterCard Business Network, can streamline their expense management when using a card.
- Make better decisions. Commercial card use provides data and insights that other payment methods simply cannot. At MasterCard, our Smart Data platform is an information-rich suite of monitoring, planning and reporting tools that enable a whole new level of understanding and analysis of what spending really looks like so businesses are empowered to make informed decisions.
- Gain more control. Whether you’re a large corporate or small business owner, having a commercial card can actually help you better manage spending. With powerful tools like Business Controller and Purchase Control, you can create customized spend profiles and generate virtual card numbers to grant employees access to funds in a controlled way.
No small business owner or large corporate CFO wants to spend time signing checks—they want to focus on their business. Commercial cards help make that possible by creating efficiencies, providing insights and managing employee spending.