Description: The following article mainly focuses on the key point of comdata login, which will show you how Comdata’s Virtual Payment MasterCard can help you transition seamlessly from paper to electronic payments. You can reduce the cost of your vendor payments and turn your AP department into a revenue generator.
Welcome and thank you for joining this overview of the comdata virtual payment MasterCard, I like to set the stage by sharing a statistic from a 2010 study done by the international accounts payables professionals, the US organization surveyed in this study reported that they planned to double their use of paperless payment methods by 2014.
The timing is perfect for you and thought leaders in your organizations to explore the valuable opportunity at hand with the comdata virtual payment MasterCard, before we proceed, allow me to provide a bit of history and some background on the genesis of our E-payable solution.
One of our valued customers approached us back in 2004 with a unique need, they were successfully using our MasterCard fleet, purchasing and tini card programs for traditional corporate spend, but they wanted to eliminate the high cost and manual processes associated with issuing paper AP checks to pay their vendors.
We leveraged our strong relationship with MasterCard and did research on their master vendor file, we found that over 60% of their suppliers already accepted MasterCard, from the voice of the customer we pioneered process and developed the first E-payable solution over six years ago.
As we explore this unique solution today, we will answer three questions, first how can I transform my AP Department into a revenue generator? Second how can I enhance security and mitigate fraud risk? Finally how can I automate and improve my payment and reconciliation process?
Let’s begin by exploring five key benefits the comdata virtual payment master card can bring to your organization, first is acceptance, as we have found in our years experience with our customers, sixty to seventy percent of the average company’s vendors and suppliers already accept MasterCard.
In fact over 30 million vendors accept Master worldwide, over eight and a half million in the US alone, next is automation, with the comdata virtual payment MasterCard we provide a systems integration approach by simply generating a payment file from your existing ERP or accounting system to comdata.
We can send electronic payment to your vendors within 30 minutes of receiving your file, in addition to the time savings you gain on the front end, we will deliver a daily reconciliation file, clear payments may be easily reconciled and open invoices closed in your system.
We will illustrate this process further in a moment, third we provide many layers of security throughout the process, first our solution provides a unique 16 digit MasterCard number for each vendor payment, because our unique role is both issuer and processor, we are able to restrict the card so that the card can only be run in one transaction for the exact dollar amount given to us from your ERP or accounting system.
As an example, if you are paying ABC supply and invoice in the amounts of 310 dollars and two cents, we can guarantee that payment to be run in one MasterCard transaction for not a penny more or a penny less, this creates a one-to-one ratio of invoices to payments which allows completely automated reconciliation on the back end.
It’s the same result as your monthly positive pay file but without the manual effort required, the next two benefits relate directly to your bottom line, in 2009 the NAPCP, National Association of purchasing car professionals, indicated that the average company cost to produce a paper AP check was about five dollars and 14 cents.
In addition to the hard cost savings eliminating these checks, you will also benefit from soft cost savings with the automation and ease of reconciliation we discussed previously, this will allow you to free up resources and reallocate staff to other key revenue generating activities.
Finally let’s discuss how this solution can create the unique opportunity for your AP Department to become a revenue generator not a cost center, because our role is both issuer and processor, we have a unique ability to receive 100% of the interchange rate.
This percentage of each transaction is the cost that merchants and vendors are already paying for the benefit of accepting credit cards, we are able to offer revenue share basis points with our customers corresponding to their dollar spend volume and payment terms.
For example, a company on daily payment terms achieving the same FLOTUS checks prepaid with a credit line in place, we’re able to share in the range of 125 basis points which could go up depending on volume, so for 1 million dollars an enrolled vendor spend moving through the program each month, customer would receive a cash monthly rebate of $12,500.
This is a monthly check to your company with no tears and not paid at the end of the year as some of our competitors do, our superior revenue share with our customers is truly a unique differentiator for the comdata virtual payment master cards.
Moving next into the overview of our program, the comdata virtual payment master card serves as an alternative to check or ACH, our vendor enrollment services target checks first due to their high cost, since check represents 70 to 80 percent of payments made out of a typical AP department.
One question you may ask is how this solution differs from ACH, the obvious first one is the opportunity to have a revenue share, a monthly cash basis based on every dollar that you spend through the solution, secondly we can provide increased data, metrics and custom reports to increase your visibility into your payment program.
Our Business Intelligence Platform provides real-time access to your reporting and can answer questions such as what your top five vendors are paid and how you can improve your payment program internally, secondly we provide a unique MasterCard account number creating that one-to-one ratio of invoices to payments.
Being able to lock that transaction down to a specific vendor payment and dollar amount enables you to reconcile those payments and close out the invoices on your back-end automatically, next let’s take a look at some specifics of the program.
Beginning with the end in mind, what will the vendor receive instead of the cheque remittance? You see an example of the electronic remittance advice your vendors will receive via secure email, at the top you see your company information, name, address and phone number.
The purpose of this is to provide contact information for your vendor or supplier in case they want to reach back out to you with specific questions on this remittance, next you will see the supplier name and the payment number, this payment number is the payment number generated out of your system and is typically corresponding to your check number.
Next you see the MasterCard number, there is the sixteen digits unique card with the first six digits masked for security purposes, this allows us to send these remittance via secure email, if a third party intercepts this email, it will have absolutely no relevance to them because they will not know the first six digits of the card number.
The first six digits of the card number are communicated to your vendors as we enroll them in our enrollment process, with that 16-digit master card number, expiration date and security code, your vendor can run that payment on their existing MasterCard device.
You also see the detail here that you would have normally included on your check payment stub, you see three example invoices for a dollar each totaling three dollars, we have the ability to lock this payment down for exactly three dollars.
It must be run in one transaction so that when these payments clear MasterCard, you know you can clear those invoices on your ERP on the backend, let’s review the overall process, it begins with you processing your accounts payable invoices and vouchers in your ERP as normal and sending a simple file to comdata.
We process those files every 30 minutes and respond immediately with a response file containing the unique 16 digits MasterCard numbers in case you wish to reference them later, we also send out the electronic remittances to the vendors containing the unique 16 digits MasterCard number masked for security purposes with the expiration date and security code.
As we discussed with that information your vendor can run those payments on their existing MasterCard device, that payment will settle within 24 to 48 hours, they will receive the funds to their designated bank account, you can see the benefit to the vendor as they certainly receive their payment a lot faster than for waiting a check to clear and to be received in the mail.
Finally the reconciliation process closes on the backend with the daily reconciliation file sent from comdata back to your ERP, closing out those invoices that have cleared MasterCard payments, you also have real-time online transaction reporting so that you can view any transaction, any card payment block or do any type of card maintenance that you wish on those payments.
In summary, let’s review the key areas that truly differentiate comdata in the marketplace, first and foremost are people, we bring over 41 years of experience as a dedicated business solutions provider, our implementation accounts support customer service teams are comprised of well tenured associates who are dedicated to our client success.
We are also very proud of our 95 percent customer satisfaction rating and continue to strive to earn that year after year, next our customers benefit from our product innovation, we are well-established as a leader in the payment industry having pioneered the e-payables solution back in 2004.
We’ve gained years of experience helping our customers achieve outstanding results not only with the comdata virtual payment MasterCard but with all of our other corporate payment solutions, our real-time transaction controls and business intelligence reporting platform allow us to bring a great deal of flexibility and value.
Finally we have established, tried and trued processes to help our customers streamline, automate and reduce costs throughout their organizations, our integrated systems approach enables us to employ best practices to ensure customer success.
Above all everything we do starts with the voice of the customer, thank you for joining our session today, if you want tot know further information on the comdata virtual payment master card, please reach out to your comdata sales representative or visit us at www.comdata.com.