The Corporate Card Faces New Hurdles In AP Departments

Although commercial cards are evolving to gain traction in more B2B payment scenarios — particularly, accounts payable (AP) — new challenges emerge that can slow down the rate of adoption.

In this week’s look at the latest in Commercial Card Innovation, PYMNTS examines the tactics industry players use to overcome hurdles, including complex strong customer authentication (SCA) compliance requirements and the pain of supplier non-acceptance.

Billtrust, REPAY Drive Virtual Card Adoption

In a newly-announced partnership, B2B payments solution provider Billtrust is working with integrated payment solution technology firm REPAY Holdings to streamline supplier payment workflows with a particular focus on expanding virtual card adoption. The companies said REPAY will be lending its solution that facilitates and automates connections between a business and its vendor base within the Billtrust platform. The integration means Billtrust users will see more suppliers onboarded to the Business Payments Network (BPN), which enables payment to those vendors via a variety of methods, including virtual card, regardless of whether that supplier accepts card.

In a statement, REPAY Senior Vice President of B2B Darin Horrocks said, “Our goal is always to help our customers simplify and optimize their vendor payments by automating payments through a single interface. We believe our partnership with Billtrust will significantly bolster the adoption of electronic payments to suppliers who participate in the BPN.”

Tat Capital Debuts Value-Add For Corporate Cards

Tat Capital launched a new solution in Australia aimed to help small- to medium-sized businesses (SMBs) make use of the credit lines available via their corporate cards in new ways. In an announcement, Tat Capital said it is partnering with Nium to launch Tat:BizPay, a platform that converts SMBs’ card limits into a cash flow stream that can be used to pay suppliers, even when vendors don’t accept cards. The solution facilitates 55 days of interest-free access to that credit while providing a holistic view of spend.

“Innovation in financial technology means that we are now able to deliver products and services that are as credible, robust and secure as banks, but free of legacy issues, while being more obtainable, affordable and better suited to the small- to mid-sized business sector,” said Tat Capital Founding Director Ram Gorlamandala in a statement.

Peoples Trust Secures CDIC Insurance For Payroll Cards

Peoples Trust Company, a unit of Peoples Group, announced that the Canada Deposit Insurance Corporation (CDIC) will now provide insurance on its general purpose reloadable (GPR) prepaid cards, as well as payroll cards, in a move that Peoples Group Vice President of Digital Enablement and Issuing Karen Budahazy said will instill greater trust among end-users.

Speaking with PYMNTS about the development, Budahazy noted payroll cards are becoming an increasingly attractive option for unbanked and under-banked professionals as a flexible alternative to a bank account. The ability for FinTech to develop features that layer on top of the payroll card solution can support the ability for professionals to access their wages more quickly or collect wages across various employers.

“We’re starting to see payroll and GPR prepaid cards looking much closer to a bank account with much less friction and greater ease of use, and the CDIC has now recognized this,” she said.

Adflex CEO Raises Commercial Card PSD2 Concerns

Europe’s PSD2 regulations include SCA requirements for payment service providers, a feature of the legislation designed to combat fraud by using multifactor authentication to verify the identity of the payer. Despite its benefits, the legislation has created a headache for some in the payments landscape as the industry works out how to remain compliant in cases of online card-not-present (CNP) transactions.

In a published report, Adflex CEO Pat Bermingham raised concerns over how commercial card transactions in Europe will adhere to SCA requirements. In the context of supplier and B2B payments, he wrote, the complexities surround custom payment terms and nuances in how businesses pay each other. For instance, it is unclear whether SCA procedures should begin when an order is placed, shipped or paid for, considering it can often be weeks between when goods are purchased and an invoice is settled.

And while PSD2 regulations provide an SCA exemption in circumstances in which a commercial card is accepted via a “secure environment,” Bermingham noted that it does not explain what constitutes secure. These uncertainties will give rise to the need among many B2B companies to turn to a third-party specialist to implement compliance and security measures, he said.