FREQUENTLY ASKED QUESTIONS

about VSPIRE's electronic payment program

Below you'll find answers to frequently asked questions regarding electronic payments utilizing integrated payables solutions.

Q. What are virtual card (V-Card) payments?

A.   Virtual card payments, also known as V-Card, are single-use, electronic credit card (no-card-present) payments initiated from the buyer to a supplier for the exact amount owed to them. V-Card payments replace paper check payments and utilize the MasterCard network.

Q. Why should our organization implement a business-to-business (B2B) integrated payables solution?

A.  Offering an electronic integrated payables solution such as V-Cards, or ACH is an excellent way for companies to pay their suppliers timely, securely, electronically and to reduce the high cost of issuing paper checks.  Electronic payments help to reduce the costly check processing fees which can range from $8.00-$30.00+ per check.  The reduction of paper check processing will improve financial costs of lost or stolen checks.  Implementing an electronic payment solution with VSPIRE we will help guide your company through the process, and will allow you the opportunity to standardize supplier payment terms to industry standards and will also help generate a new source of revenue.  Since VSPIRE's only focus is working with B2B companies, your company will benefit from our existing relationships with countless suppliers who are already familiar with our services and the on-boarding process.

Q. What are the benefits to of paying eligible suppliers with a form of electronic payments?

A.  Benefits include:

  • No changes to your existing accounting systems or procedures
  • Provide suppliers with a timely, secure, reliable and electronic payment option (eg. virtual card, ACH)
  • Eliminate per item banking fees and processing costs
  • Extend float and increase cash flow
  • Check fraud reduction/elimination
  • Ability to expedite payments (early pay) to suppliers while maintaining standard payment terms (moving payment terms early can negatively affect an organizations Days Payable Outstanding)
  • Opportunity to strengthen supplier’s relationships including your local suppliers
Q. Will electronic payments impact the invoice process our company currently has with suppliers?
A.  No! Your company's current invoice approval process, procedures and supplier contacts will remain unchanged.
Q. Is the electronic payment option of Virtual Card (V-Card) the same as a Purchasing Card (P-Card)?
A.  No! V-Cards are business-to-business (B2B) payments sent to the supplier for processing without a physical card present. P-Cards are physical plastic credit cards used for employee travel expenses or fleet charges.
Q. Which suppliers are eligible for electronic payments?
A.  The short answer is electronic payments are available to any supplier receiving paper checks today. VSPIRE will work with each supplier to determine the best electronic payment option that meets their needs.
Q. Is there an added fee for suppliers using electronic payments?
A.  No! There are no added fees or upcharge accessed by VSPIRE for enrolling in or using electronic payments. However, if the supplier elects to receive electronic payments via virtual card the supplier’s standard merchant fees apply to each payment. All suppliers have already negotiated their own merchant fees.
Q. Why would suppliers accept V-Card payments if they have to pay a fee?
A.  This is a commonly asked question by companies. Suppliers accepting V-Card payments will benefit from receiving their approved payments from the buyer on-time and eliminates the check processing delays (can save the supplier 2-5 days). Suppliers will also receive 100% of the invoice amount – not an adjusted amount.  The supplier will also benefit from the credit card float advantage of the merchant fee not be accessed for up to 30 days, depending on their merchant acquirers billing cycle.  The supplier is in more control of receiving their approve payment when it’s due and will be able to reconcile these payments electronically in their accounting system.
Q. Does the supplier need any additional technology to accept any form of electronic payment?
A.  No! If a supplier elects virtual card payments then they can simply use their existing point-of-sale (POS) system to process virtual card payments. For ACH payments, no additional technology is needed to process the payments.
Q. How difficult is the supplier enrollment process?
A.  VSPIRE has made the supplier enrollment easy and only takes 2-minutes to complete the online enrollment form. There are no fees to negotiate. No paperwork, no banking information collected, no lien release, no letter of credit, and no know-your-customer (KYC) documentation is needed to enroll. Suppliers will be directed to an online self-registration enrollment center that is co-branded between your company and VSPIRE.
Q. Does my company need to change our existing A/P systems and processes to make V-Card work?
A.  No! Your company can keep all of their existing A/P systems and processes exactly the same. VSPIRE'S technical team will work with you or your assigned team to ensure effective processes are in place using the existing A/P system.
Q. Our company currently has a supply chain finance (SCF) program or another virtual card program with another provider in place for the last few years. Can we still work with VSPIRE to offer electronic payments for our suppliers to gain a larger acceptance?
A.  Absolutely! The VSPIRE electronic payments solution can be used alongside ANY other supplier finance, commercial card or trade payables programs. VSPIRE will work with your treasury bank to ensure this relationship is not disrupted.

ARE YOU READY TO TAKE THE FIRST STEP TO GO PAPERLESS?

If YES, then click "Start Now" to determine if your business qualifies to transition to electronic payments.

Transitioning from paper checks to electronic payments to pay suppliers is not complicated, but trying to determine if your company qualifies and where to start can be overwhelming, time-consuming and confusing. Click the "Start Now" button below and answer a few questions to determine if your company is eligible for electronic payment solutions. If so, VSPIRE will walk you through the entire process on how to make this happen for your business. 

This questionnaire is absolutely FREE to determine if you qualify. 

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REQUEST A SUPPLIER ANALYSIS

The cost is FREE, the value is PRICELESS!

VSPIRE's Supplier Analysis will provide your company with the supplier conversion opportunity to electronic payments and deliver revenue projections. Fill out the form below and VSPIRE's Supplier Analysis Team will contact you within 24-hours to discuss the next steps. The information provided in this request form will open up discussions between our companies to begin the supplier analysis.

Important to note: by filling out the form below, your company is not obligated to use VSPIRE to implement an electronic payables program.