Virtual Cards and Their Growing Role in B2B Transactions
The adoption of virtual cards in business-to-business payments is accelerating. A growing number of finance leaders are moving away from paper-based processes in favor of digital options that offer greater efficiency, visibility, and cost control.
According to industry research, global virtual card payment volume is expected to grow significantly, reaching nearly $7 trillion by 2026. This dramatic rise reflects the broader move toward financial digitization and the desire to optimize working capital and strengthen supplier relationships.
Finance departments, especially accounts payable teams, are recognizing the limitations of traditional payment systems. Checks are slow, expensive, and susceptible to fraud. ACH payments, while electronic, often lack rich remittance data and require sensitive banking information. Virtual cards bridge this gap by offering a secure, controlled, and efficient way to disburse funds while maintaining clear records and compliance.
How the ePayables Process Works
The ePayables process follows a structured and automated workflow, enabling greater control and transparency. It typically consists of five major steps:
1. Enrollment
The buyer enrolls the supplier in the ePayables program. This may involve assigning the supplier a dedicated-use virtual card or opting for single-use cards issued per transaction. The payment provider or financial institution supports the onboarding process and manages card issuance.
2. Invoice Submission
The supplier sends an invoice to the buyer as they normally would, either through email, electronic invoicing systems, or integrated procurement platforms.
3. Invoice Approval
The accounts payable team receives the invoice and processes it through internal approval workflows. This step includes verifying invoice accuracy, matching purchase orders, and gaining necessary sign-offs from stakeholders.
4. Payment Instruction
Once approved, the buyer instructs their financial institution or payment processor to fund the virtual card with the specific invoice amount. This transaction is logged in real-time, and details are sent securely to the supplier.
5. Supplier Payment
The supplier charges the virtual card, and funds are deposited into their account. Remittance data is included, making reconciliation faster and simpler for both parties.
This streamlined approach eliminates the delays and complications of traditional payments, giving both buyers and suppliers better visibility and predictability.
Key Benefits of ePayables for Businesses
ePayables provide a wide range of advantages for businesses of all sizes, particularly those managing high volumes of vendor payments or seeking to modernize their finance operations.
Faster Payment Cycles and Improved Cash Flow
Speed is a defining feature of virtual card payments. Most suppliers receive payment within one to two business days after invoice approval. This is significantly faster than the multi-day processing associated with checks or even ACH transfers. The shortened cycle reduces Days Sales Outstanding for suppliers, helping them manage their working capital more effectively. For buyers, faster payments can be leveraged to negotiate early payment discounts or preferential terms.
Lower Processing Costs and Reduced Manual Work
Paper checks incur costs at every stage—printing, postage, bank fees, and labor. Manual data entry introduces human error and slows down the reconciliation process. Virtual cards automate much of this workflow and integrate with enterprise resource planning systems to reduce reliance on spreadsheets and paper trails.
The automation not only saves money but also enables accounts payable staff to focus on higher-value tasks. Instead of spending time on repetitive tasks like data entry and invoice matching, teams can concentrate on vendor analysis, compliance tracking, and strategic initiatives.
Enhanced Transaction Data and Real-Time Visibility
With each virtual card payment, businesses gain access to enriched transaction-level data. This includes invoice numbers, vendor information, line-item details, and payment status. Real-time reporting capabilities allow for instant visibility into spending patterns, payment trends, and department-level financial performance.
This transparency supports better decision-making and enables finance teams to respond quickly to exceptions or discrepancies. It also simplifies the month-end close process by reducing unreconciled items and improving the accuracy of financial statements.
Security and Risk Reduction
Traditional payment methods like checks and ACH transfers present significant fraud risks. Checks can be stolen or forged, and ACH payments require sharing sensitive bank account information.
In contrast, virtual cards offer a much more secure alternative. Single-use cards are generated for individual transactions and can only be used for a specific amount and supplier. If the card information is compromised, it cannot be reused. Buyers can also impose usage limits, expiration dates, and vendor restrictions to prevent misuse.
These security features make virtual cards a key tool in reducing fraud exposure and improving compliance with internal controls and external regulations.
Revenue Through Rebates and Incentives
Many virtual card programs offer financial incentives in the form of rebates based on transaction volume. This turns the payments function from a cost center into a potential revenue generator. Rebates vary by provider and transaction type but can add up to substantial savings for organizations processing large payment volumes.
While rebates alone may not justify a full switch to ePayables, they offer a compelling value-add that contributes to overall financial performance.
Fewer Late Payments and Avoidance of Penalties
Late payments damage supplier relationships and may incur financial penalties or interest charges. By automating the payment process and enabling real-time tracking, ePayables help ensure that vendors are paid on time and in full. This reliability builds trust and positions businesses as preferred partners, especially in industries with competitive supplier markets.
The system also reduces the chances of insufficient funds being available at the time of payment, as the transaction is pre-approved and funded through the virtual card.
Ideal Use Cases and Supplier Profiles
While ePayables can benefit almost any business, certain scenarios and supplier profiles are particularly well-suited for this payment method. These include:
- High-volume or high-value suppliers that benefit from faster payments
- Vendors offering early payment discounts
- Suppliers already accepting virtual card payments
- One-time or irregular vendors where establishing ACH isn’t practical
- Suppliers in industries with long payment terms or high working capital requirements
- Vendors undergoing contract renegotiation or onboarding
By focusing initial ePayables rollout on these supplier types, companies can accelerate adoption and demonstrate value quickly. Success in these early implementations can then be used to drive broader program expansion.
Comparison with Checks and ACH Transfers
To fully appreciate the advantages of ePayables, it’s important to understand how they compare to traditional alternatives.
Checks are still widely used but come with major drawbacks. They are slow to process, require manual handling, and are vulnerable to fraud and theft. They also lack detailed remittance data, making reconciliation labor-intensive.
ACH transfers offer some benefits over checks, including faster settlement and lower fraud risk. However, they still involve sharing sensitive banking information and often lack the rich transaction data required for effective reconciliation.
ePayables, in contrast, combine the strengths of both methods. They are fast, secure, and highly controllable. With built-in automation and real-time analytics, they offer a level of sophistication that older payment methods simply cannot match.
Strategic Shift Toward Digital Payments
CFOs and finance leaders are increasingly prioritizing automation and digital tools to improve efficiency and resilience. A major reason for this shift is the growing pressure to do more with fewer resources, especially in today’s dynamic economic environment.
A recent survey of finance professionals found that nearly half cited increased efficiency as the primary driver behind adopting digital payments. More than 60 percent reported already using virtual cards for at least some transactions, with many actively working to expand supplier acceptance. The trend is clear: organizations that invest in modern payment systems are better positioned to scale, adapt, and compete in a changing marketplace.
Why Internal Buy-In Is Critical for ePayables Success
For many organizations, the decision to adopt ePayables is not just about improving payments; it’s about initiating a cultural and operational shift. While the technology is straightforward, success relies heavily on cross-functional support. Departments such as accounts payable, procurement, finance, IT, and executive leadership all need to align around shared goals and responsibilities.
Resistance to change is a common challenge. Many teams are comfortable with existing processes, even if they are inefficient. Others may lack awareness of the benefits or fear disruption during implementation. Gaining internal support starts with crafting a solid business case that clearly communicates how ePayables will impact operations, finances, and risk management.
Building a Compelling Business Case for ePayables
Creating a business case for ePayables involves clearly articulating the problem with current systems, identifying the benefits of change, and backing it up with data. The following components are essential to a persuasive case for stakeholders.
Pain Points in Traditional Payment Methods
The business case should begin with an honest assessment of existing issues in the accounts payable process. These might include:
- High cost of processing checks, including printing, postage, and labor
- Delays in payment cycles leading to missed discounts and strained vendor relationships
- Limited visibility into payments, making reporting and reconciliation time-consuming
- High fraud risk from paper-based payments and manual workflows
- Lack of scalability, especially during periods of business growth or staff turnover
These challenges are often accepted as routine, so illustrating their financial and operational impact is crucial. Data such as the cost per check, average invoice cycle time, and payment error rates can help build urgency.
Financial Benefits and Return on Investment
Next, the case should quantify the expected financial benefits of ePayables adoption. This includes:
- Cost savings from reduced paper and manual work
- Cash rebates or rewards for virtual card transactions
- Labor efficiency from automation
- Fewer late payment penalties or expedited payment fees
- Potential supplier discounts for faster payments
Comparing the total cost of ownership for traditional systems versus ePayables can help paint a clear picture. Include both hard savings (direct cost reductions) and soft savings (time saved, reduced risk).
Risk Reduction and Compliance Improvement
In addition to financial gains, ePayables enhance control and compliance. Virtual card payments reduce fraud exposure through single-use numbers, transaction limits, and vendor-specific controls. Automated audit trails simplify regulatory reporting and improve transparency during internal or external audits.
Including risk metrics, such as reduced fraud claims or improved audit scores, strengthens the strategic appeal of the business case.
Strategic Alignment with Business Objectives
Linking the benefits of ePayables to broader business goals increases executive buy-in. This may include:
- Supporting digital transformation initiatives
- Enabling remote work with cloud-based payment processing
- Improving cash flow management and working capital strategy
- Strengthening supplier relationships and negotiating power
A well-aligned business case shows that ePayables are not just an accounts payable initiative but a strategic investment.
Identifying and Engaging Key Stakeholders
Once the business case is developed, the next step is identifying and engaging internal stakeholders whose support is needed to move the project forward. These typically include:
- Accounts payable managers and staff
- Procurement teams
- Finance directors or CFOs
- IT leaders
- Legal and compliance officers
- Executive sponsors
Each stakeholder group has different concerns and motivations. For example, accounts payable may focus on workload reduction, procurement on vendor experience, IT on system integration, and finance leadership on cost control. Tailoring communication to each audience helps build momentum and address objections early. Regular meetings, demonstrations, and data-driven presentations are effective ways to engage stakeholders and encourage collaboration.
Assessing Readiness and Mapping Existing Workflows
Before implementation begins, a thorough readiness assessment is essential. This includes reviewing current accounts payable processes, supplier payment methods, and system integrations. Understanding how invoices are received, approved, and paid will inform the design of the new ePayables workflow.
A process map can help visualize the current state and identify areas of friction, such as:
- Manual data entry from paper invoices
- Slow invoice approvals due to lack of automation
- Bottlenecks during payment processing or reconciliation
By documenting the existing workflow, organizations can more easily identify where ePayables will drive the most value and what adjustments will be needed.
Choosing the Right ePayables Configuration
Not all ePayables implementations are the same. Depending on business needs and supplier dynamics, companies may choose between different configurations, including:
Dedicated Virtual Cards
Each supplier is issued a unique virtual card number used for recurring payments. This approach provides visibility and control while simplifying reconciliation.
Single-Use Virtual Cards
A new card number is generated for each transaction. This maximizes security and prevents misuse but may require more administrative coordination.
Hybrid Models
Some businesses use both dedicated and single-use cards depending on supplier size, payment frequency, or risk profile. Flexibility is key to accommodating different supplier preferences and operational needs.
The chosen configuration should align with payment volumes, accounting structures, and integration requirements.
Integrating ePayables with Financial Systems
Seamless integration with existing financial software is essential for maximizing the benefits of ePayables. This includes ERP systems, procurement platforms, and accounting tools. Integration ensures:
- Automated data sync between invoice, approval, and payment systems
- Accurate ledger entries and audit trails
- Easier month-end reconciliation and reporting
Modern ePayables platforms typically offer APIs or connectors for leading systems, allowing real-time updates and consistent workflows. However, integration still requires careful planning, especially when dealing with legacy systems or customized accounting environments. Early involvement of IT teams and solution architects helps avoid disruptions and ensures a smooth rollout.
Training and Change Management for AP Teams
Even the most sophisticated systems require effective user adoption. Training is a key factor in whether the transition to ePayables is successful. Teams must understand not only how to use the system, but why the change is being made and how it benefits their work.
Training programs should cover:
- How to review and approve invoices in the new workflow
- How virtual card funding and settlement works
- How to manage supplier communications and onboarding
- How to troubleshoot common issues or exceptions
In addition to formal training, appointing internal champions or power users can support adoption and serve as a resource for others. Creating reference guides and holding follow-up sessions helps reinforce learning.
Setting Measurable Goals and Success Metrics
Clear, measurable goals are essential for tracking progress and demonstrating value. Goals should be set before launch and shared across departments. Examples include:
- Percentage reduction in check payments within the first six months
- Number of suppliers onboarded to ePayables by quarter
- Reduction in average invoice processing time
- Increase in rebate revenue or early payment discount capture
- Improvement in payment accuracy or reduction in disputes
These metrics should be monitored regularly and used to inform adjustments, improve supplier engagement, and reinforce the value of the program internally.
Supplier Enablement Strategy
ePayables programs depend on supplier participation to succeed. A thoughtful supplier enablement strategy helps ensure that vendors understand the benefits and are willing to make the shift.
Key elements of a strong enablement plan include:
Targeted Supplier Segmentation
Identify suppliers most likely to adopt ePayables, such as:
- Vendors already accepting credit card payments
- High-volume or high-value suppliers
- One-time or infrequent vendors who are hard to set up in ACH
- Suppliers with upcoming contract renewals
Segmenting suppliers allows for tailored messaging and prioritized outreach.
Communication and Education
Suppliers need to understand the benefits to their own operations, including:
- Faster payments and reduced DSO
- Elimination of paper checks and manual processes
- Clear remittance data for easier reconciliation
Include FAQs, step-by-step guides, and contact information for support. Offering virtual onboarding sessions or demos can also increase comfort and confidence.
Flexibility and Incentives
Be prepared to offer flexible terms to encourage adoption. This might include early payment commitments, transaction fee offsets, or simplified setup procedures. Internal procurement and legal teams should be aligned on how to structure these offers.
Ongoing Engagement and Support
Supplier onboarding isn’t a one-time event. Ongoing communication and support are necessary to resolve issues, answer questions, and ensure continued participation. Regular check-ins, usage reports, and feedback loops help maintain momentum.
Managing the Transition Period
As with any change initiative, the transition to ePayables requires careful coordination. Some suppliers may be slower to adopt, while others may encounter technical issues. Maintaining dual payment processes—such as ePayables for some vendors and checks or ACH for others—is often necessary during this phase.
Managing this hybrid environment requires:
- Clear tracking of supplier payment preferences
- Consistent internal communication to prevent duplicate or delayed payments
- Contingency plans for payment failures or exceptions
Setting realistic timelines and celebrating milestones along the way can help teams stay motivated and focused.
Moving Beyond Implementation to Strategic Optimization
Implementing an ePayables program is only the beginning. True value is realized when the system evolves into a strategic asset that delivers measurable outcomes across the business. Optimization involves refining processes, expanding supplier adoption, maximizing financial returns, and adapting the solution to new business needs.
Once initial workflows are stabilized and internal teams are comfortable with the platform, organizations should begin evaluating performance, identifying inefficiencies, and pursuing continuous improvement. A proactive approach to managing and scaling ePayables can lead to long-term cost savings, improved supplier satisfaction, and stronger financial performance.
Tracking Key Performance Indicators for ePayables
Continuous measurement is essential for ensuring that the ePayables program delivers on its intended value. Identifying relevant key performance indicators (KPIs) allows businesses to benchmark progress and drive strategic improvements over time.
Some critical KPIs to track include:
Supplier Enrollment Rate
This measures the percentage of targeted suppliers who have adopted virtual card payments. Tracking enrollment by segment, industry, and payment volume helps identify trends and obstacles.
Payment Conversion Rate
Evaluating how many payments are processed through ePayables versus legacy methods helps assess the level of transition. A high conversion rate indicates effective adoption and internal alignment.
Days Payable Outstanding (DPO)
A key liquidity metric, DPO reflects how long a company takes to pay suppliers. Optimizing payment timing within terms allows businesses to manage cash flow strategically while maintaining vendor satisfaction.
Rebate Revenue
For companies enrolled in rebate-based programs, tracking the revenue generated from card usage can quantify a direct financial return. Comparing this against program costs highlights overall efficiency.
Processing Time and Labor Savings
Monitoring the average time from invoice approval to payment completion provides insight into labor savings and workflow efficiency. This can be compared to historical data from manual processes.
Error Rate and Payment Disputes
Reducing manual intervention should correlate with fewer payment errors and disputes. A low error rate indicates strong process integrity and effective reconciliation.
These KPIs form the foundation of ongoing performance reviews and optimization plans.
Enhancing Supplier Participation Over Time
Sustaining and expanding supplier adoption is one of the most impactful ways to grow ePayables success. Even after initial rollout, many organizations leave value on the table by failing to re-engage with suppliers who were not onboarded initially.
Revisit Non-Participating Suppliers
Suppliers who declined during the initial rollout may be more receptive after seeing industry trends or hearing feedback from peers. Segment them by spend and contract status, then prioritize outreach based on impact potential.
Use Targeted Communication Campaigns
Tailored messaging based on supplier type, payment history, or prior objections helps improve engagement. For example, highlighting faster payment speed to suppliers with extended terms or offering onboarding assistance to those with limited technical resources.
Monitor and Share Success Stories
Internal or peer success stories can be compelling. Suppliers are more likely to participate when they hear how others are benefiting through improved cash flow, fewer reconciliation issues, or faster payment processing.
Align Procurement with ePayables Goals
Procurement teams play a key role in influencing supplier behavior. Ensuring they are aligned with ePayables goals helps create unified communication and negotiation strategies. For new contracts or renewals, virtual card acceptance can be included as a preferred payment method.
Leveraging ePayables to Improve Working Capital
Once basic processes are optimized, organizations can begin to use ePayables as a strategic tool for managing working capital. The timing and structure of payments can significantly impact both cash reserves and vendor relationships.
Pay Early to Capture Discounts
Many suppliers offer early payment discounts, especially in tight-margin industries. With ePayables, businesses can make timely payments without compromising cash flow due to rebate structures and float periods.
Extend Terms Without Straining Relationships
Virtual card payments allow companies to extend DPO strategically while still ensuring suppliers are paid quickly once the card is charged. This maintains trust and opens opportunities for longer payment terms.
Support Cash Flow Planning
Real-time visibility into payment status and upcoming liabilities helps finance teams manage forecasts and allocate funds more effectively. When paired with budget tools or analytics dashboards, ePayables become part of broader financial planning.
Improving Internal Controls and Audit Readiness
Compliance, control, and risk mitigation are often secondary drivers during initial adoption but become more prominent as the program matures. ePayables provide unique capabilities to strengthen internal controls and simplify audit processes.
Granular Spending Controls
Virtual cards can be customized with specific rules, such as:
- Merchant category restrictions
- Single-use expiration
- Maximum transaction or card limits
- Supplier-specific access
These controls reduce unauthorized purchases and prevent overpayments.
Enhanced Traceability
Every transaction is logged with detailed data including who requested the card, who approved the invoice, when it was charged, and which supplier received the funds. This provides an audit trail that is far more complete than traditional payment methods.
Simplified Reconciliation
Because payment data is automatically linked to invoice and accounting records, reconciliation is streamlined. Fewer mismatches mean faster month-end close and reduced burden on finance staff.
Support for Regulatory Compliance
Industries subject to strict financial regulations benefit from automated reporting and secure payment handling. Virtual cards support compliance with data privacy laws, payment standards, and internal financial controls.
Integrating ePayables with Procurement and Expense Systems
As usage increases, opportunities arise to integrate ePayables more deeply into the broader financial ecosystem. The goal is to create a seamless flow of data across procurement, invoice approval, payment, and reporting systems.
Linking Procurement and Payment Workflows
By integrating purchase orders, invoice processing, and ePayables into one platform, organizations eliminate data silos and ensure consistency across teams. Purchase requests can be automatically matched to approved budgets, and payments can be triggered only after three-way matching is complete.
Tying ePayables to Expense Management
Some businesses extend virtual card usage to employee expenses or project-based spending. This enhances visibility into off-cycle purchases and allows central control over distributed spending.
Leveraging APIs for Real-Time Data Exchange
Application programming interfaces (APIs) enable real-time sync between financial platforms. This allows:
- Instant card issuance based on invoice approvals
- Live updates to general ledger entries
- Continuous data flow for performance dashboards
APIs are especially valuable for scaling the program across business units or regions with different systems and workflows.
Adapting the Program for Growth and Complexity
As the business evolves, the ePayables program must remain agile and adaptable. New suppliers, acquisitions, geographic expansion, and changing cash strategies all influence how payments should be managed.
Supporting International Payments
For global operations, extending ePayables to international suppliers can deliver consistent processes and improved control. However, this may involve:
- Addressing cross-border fees or currency conversions
- Ensuring supplier acceptance in new markets
- Aligning with local financial regulations
Working with partners who offer international virtual cards or localized payment support can simplify expansion.
Scaling with Business Growth
Growth often brings increased invoice volume, more suppliers, and new internal stakeholders. Ensuring the ePayables infrastructure can scale—both technically and operationally—is crucial. This includes maintaining system performance, training new users, and updating documentation.
Managing Multi-Entity Environments
Organizations with multiple entities or business units may need to support different approval hierarchies, currencies, or charts of accounts structures. A flexible ePayables program can accommodate these requirements while maintaining centralized oversight.
Encouraging a Culture of Continuous Improvement
Optimization is not a one-time project. Leading companies build continuous improvement into their financial processes by regularly reviewing results, gathering feedback, and making adjustments.
Regular Program Reviews
Schedule quarterly or biannual reviews to assess performance against KPIs, identify bottlenecks, and evaluate supplier feedback. Use this time to update goals and prioritize new initiatives.
Cross-Functional Feedback Loops
Encourage input from accounts payable, procurement, IT, and suppliers. This helps surface issues and uncover opportunities for improvement, such as process refinements or updated training materials.
Pilot Programs for New Use Cases
As new features or capabilities become available, consider running pilot programs with select teams or departments. For example, testing virtual card payments for travel expenses or project procurement can reveal insights before wider rollout.
The Strategic Future of ePayables
The role of ePayables is expanding from tactical payment processing to strategic financial enablement. In the future, we can expect continued evolution in how companies use digital payments to drive transformation.
Artificial Intelligence and Automation
Machine learning and AI are enhancing payment processes by predicting invoice approval timelines, identifying potential fraud, and recommending optimal payment strategies based on working capital goals.
Supplier Self-Service Portals
Giving suppliers direct access to payment status, remittance data, and onboarding tools reduces support requests and increases transparency. This improves relationships and simplifies administration.
Advanced Analytics for Decision Making
As data collection becomes more sophisticated, businesses can analyze payment trends, optimize supplier terms, and even forecast future spend behavior. Data-driven decision-making will be a key competitive advantage.
Conclusion
The evolution of accounts payable is well underway, and ePayables stand at the forefront of this transformation. As businesses seek greater efficiency, control, and financial agility, virtual card-based payments offer a compelling alternative to outdated processes. By eliminating paper checks, reducing manual work, and delivering real-time payment data, ePayables unlock new value across finance, procurement, and supplier relationships.
The benefits are far-reaching. From faster payments and improved cash flow to lower processing costs and enhanced security, ePayables improve the financial health of an organization while strengthening operational resilience. For suppliers, the ability to receive timely payments and reduce payment uncertainty fosters loyalty and long-term collaboration. For buyers, streamlined workflows, automation, and cash rebates offer immediate and long-term ROI.
Still, success depends on more than just technology implementation. Driving internal alignment, engaging suppliers, and managing the change with purpose are essential to ensure adoption. As organizations mature in their ePayables journey, opportunities to scale, optimize, and integrate with broader financial systems multiply—turning a functional process into a strategic advantage.
Looking ahead, ePayables will continue to evolve alongside advances in automation, data analytics, and digital finance. Companies that embrace this shift proactively will not only modernize their accounts payable operations but also position themselves for greater agility, transparency, and financial performance in an increasingly digital economy. The future of business payments is here—and those who lead in adoption will set the pace for innovation and value creation.
