As a business owner, you understand the importance of efficiency, protection, and improving your bottom line. And you’re not alone. Business owners—small and large—want the best for their business. So, why are the majority of businesses still using checks to make payments? Not only are checks the payment type most susceptible to fraud (75% of organizations experienced check fraud in 20161), but they can hinder cash flow (check payments withdraw funds immediately upon deposit) and cause inefficient accounting processes (on average it takes 30 minutes to pay an invoice by check).
So, what can you do? Implement a business credit card (also known as a business purchasing card) for your payment needs. Business credit cards are the only payment method not directly tied to your operating account. So, if fraud does occur, there is no impact to your cash. Plus, most major credit cards have fraud protection in place that prevents you from being held liable for the loss. Using a business credit card allows you to pay your vendors right away, but the cash isn’t withdrawn until you pay your credit card bill, giving you at least a 25-day grace period and improving cash flow. Plus, business credit cards can create an 81% reduction in accounts payable costs, saving you time and money. In fact, according to Mastercard®, converting payment of 500 invoices from check to credit card can result in an annual savings of $1,620 to $7,100.2
When determining the best credit card for your business, it’s important to consider additional card perks, such as rewards, as well as terms. Earning rewards may allow you to contribute directly back to your business and improve your bottom line.
Ready to get started with a business credit card? Check out our FirstRewards® World Mastercard® for Business. Learn more about our card and its features today!
1 For more information on Payments fraud, check out the 2017 AFP Payments and Fraud Control Survey.
2 Source: Mastercard Advisors