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Corporate Card Payments

Many small businesses today accept card payment from consumers. It’s seen as an essential, a different avenue of revenue, which would be unavailable were the business not to accept card payments. 

“Oh, you don’t accept card? Sorry, I don’t have any cash on me.”

It’s a consumer-driven business, whereby the convenience to the customer is seen as greater than the cost to the business, and so the service is provided, and any costs are eventually wrapped up into the price of goods. 

However, this doesn’t seem to be the case for B2B payment models. Somehow, in the name of competitivity, the business won’t roll credit card cost into the base price, and so the payment method becomes hidden in the terms and conditions, an agreement the purchasing organisation is forced into once they’ve already decided on their supplier. The supplier has good reason for this - all overheads count, and they will have to be passed on to their customers. This sort of practice is particularly common among industries which sell a package, all wrapped into one bundle. 

It’s perfectly valid to have the cost-versus-benefit discussion across parties, but the vast majority seem to push this under the rug, and companies just accept that they will have to bank transfer as that’s just how it is done. But by sweeping over the whole discussion, the cost of manually processing all those payments is overlooked. 

It’s a valuable exercise as a business owner or procurement professional, to look at the full cost of purchase, including time spent on invoices. After all, all overheads count.

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