How a commercial card program can benefit your business

For years now, companies have been migrating from paper to electronic payments, looking to reduce costs, increase cash flow and create efficiencies. In addition to increasing use of the Automated Clearing House network, many businesses have been pursuing these goals -- and improving their purchasing and accounts payable processes -- by adopting commercial card programs. For most, it's empowered employees by giving them purchasing cards to pay for day-to-day business purchases.

The pandemic and the growing migration of employees to remote work have made card programs even more attractive and led to even greater adoption. Has your business remained on the sidelines in the midst of this trend? If so, now is the time to revisit how a commercial card program can benefit your business.

A more efficient, secure alternative

Commercial cards offer an alternative to issuing paper checks for everything from everyday office purchases and business travel transactions to fleet expenses and vendor payments. As such, commercial card programs greatly reduce the need for petty cash and personal card reimbursements, and they put convenient spending power in the hands of the employees who need it.

Cards streamline the entire procure-to-pay process, automating many of the steps associated with using paper purchase orders to authorize payments and paper checks to distribute them. Employees can save time and companies can redeploy accounts payable staff to more value-added work. Furthermore, businesses reduce payment cycle time by a week on average and save up to $70 per transaction in administrative expenses by using a purchasing card instead of purchase orders and checks, according to RPMG Research Corp.'s 2017 Purchasing Card Benchmark Survey.

Put convenient spending power in the hands of the employees who need it.

In the midst of the pandemic, card programs have gained value because they reduce the need for employees working at home to go into the office to print checks, seek signature authorizations and stuff envelopes.

Card programs also help control spending and protect against theft and fraud. Daily, weekly and monthly transaction limits help reduce unsanctioned card use, while purchases from unauthorized merchant categories can be blocked. Card program administrators can review purchases online, making it easy to flag violations of spending policy.

Visa card offerings through Hancock Whitney also provide auto rental, travel accident and baggage delay coverage, as well as a Visa Liability waiver for employee fraud.

Evaluate your card opportunities

Commercial card programs are paying off in a big way during the pandemic, and they will continue to produce dividends when COVID-19 recedes and employees return to the workplace.

If you are wondering if a traditional plastic card program would be appropriate for your business, a Hancock Whitney banker can help you assess your needs.

For more information, visit www.hancockwhitney.com/treasury-services or call (866) 594-2304.