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February 23, 2022

Paying Vendors By Credit Card in Corpay One

By 
Kelly Gonsalves

The Benefits of Paying By Credit Card

Some of you may already know exactly why the ability to pay by credit card is beneficial - especially for a small business owner. For those of you that don’t, here are some reasons why using business credit cards can be a great option for business owners:

  1. Extended terms - Paying bills via credit card can extend the amount of time that passes before cash actually leaves the bank for expenses. Yet, you are still paying on time. So, at minimum, there’s typically an extra 30 days of buffer time between when a bill is issued and when the cash paying that bill leaves your bank account...
  1. More predictable cash flow - Because of the extended payment window described above, credit card payments come with more flexibility for planning EXACTLY when cash will leave your bank account for payment. For instance, you could pay a 15 day terms bill on time with the credit card and schedule payment against that credit card balance for after your own sales begin to hit your bank 35 days later. This kind of flexibility is particularly valuable for businesses that are paying for goods they have to sell in order to pay for the cost of the goods. 
  1. Credit card rewards and other discount programs - Earning credit card points or cashback on business expenses is an obvious benefit for business owners. Who doesn’t like being rewarded? But beyond this, many vendors offer discounts or special benefits for paying early or all at once. The extended terms and more predictable cash flow mentioned above allow business owners to take better advantage of ‘pay-early’ discount opportunities without breaking their bank.

In short, there are lots of reasons businesses might prefer to pay with a credit card rather than via traditional cash based methods. But there is actually more to it than this. Using a credit card along with Corpay One can add to these benefits! And it’s really easy. Basically, it’s just like paying in Corpay One with your bank account, only instead of your bank account funding your bill payment, your credit card does. 

The Benefits of Using a Bill Pay Platform with a Credit Card 

At this point you might be asking yourself – why put Corpay One in the middle of things? Why not just pay with a credit card directly? So, here are three reasons why using a bill pay platform like Corpay One in conjunction with your credit card can level up your bill pay process. 

More payment options

The most obvious reason to use Corpay One to pay bills by credit card is extremely simple - not all vendors accept credit cards!! Corpay One allows you to fund Check and ACH vendor payments with a credit card¹ - even if a vendor doesn’t accept them. When you use your credit card¹ as the payment source for these vendor payments, your vendor still receives their payment in the method they prefer: a paper check or ACH deposit. Win, win - right?

There are quite a few sizable and frequent expense types that are traditionally not open to payment by credit card. By using a credit card in conjunction with Corpay One, you expand your options. Imagine being able to pay staff and purchase goods immediately for a special event, but not having to see that money leave your bank until you actually get paid by your customer for that same special event? 

More flexible payment options can change what’s possible for small businesses – particularly when it comes to the scale of what they are able to take on.

Stable workflows

In short, paying vendors one by one via credit card can be a real hassle. Paying vendors directly with credit cards usually means calling or visiting the online pay space of each payee, manually entering in your payment details for each payment, and then manually filing each receipt. You get the idea. 

When you fund Check and ACH payments by credit card¹ in Corpay One, you don’t have to go through all of the manual steps mentioned above. It’s an all-in-one process that maximizes your time. No special sites, no extra and repetitive manual data entry. In just a few clicks, you can review and approve your bills- all in one place. It’s that simple.

Security

Business is extremely fast-paced. This means there are times when our need for speed can blind our judgment. For instance, you might need to use a credit card to pay a utility bill this month but you might also not have time to actually log onto that website and issue that payment. 

So, maybe every now and again you hand over the company card to a member of your office staff or your bookkeeper to speed up the process. This might seem like a great idea in the moment but in reality, every time you hand your credit card to another team member, the list of people with access to your credit card information grows - which could ultimately become a security issue. 

On the other hand, if you had that credit card set up as a funding source within Corpay One this would not be an issue. Adding a team member as a contributor allows them to approve a vendor payment, but doesn’t give them direct access to your payment information. In fact, Corpay One is encrypted to the highest security standards - so you never have to worry if your information is secure.

The Bigger Picture

Lastly, there is an elephant in the room that needs to be addressed. Traditionally, bookkeepers and accountants have been more conservative in recommending their clients use credit cards to pay everyday business expenses. But this is a new world. Small business owners need all the help and more importantly versatility that they can get when they pay by card - especially when they do it in Corpay One!

The nice thing for accountants and bookkeepers about layering in the functionality of a bill payment app, like Corpay One, is that if your clients want or need to use a credit card, you don’t have to create completely unique processes for those payments.

What's more, by housing all payments safely in one integrated and monitored system, you can keep your clients happy using the tools they feel they need, while still keeping your access to data, predictability, and detail firmly in hand. 



Sources:

¹ 2.9% transaction fee applies. Visa®, Discover® and Mastercard® only. See terms and conditions for details. US customers only.

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