Examining how to turn AP departments into revenue centers and sources of strategic advantage.

Total Cost of Ownership and Electronic Payments

If you're measuring the quality of your electronic payments program through the narrow lens of rebate percentage per transaction, it is very likely that you will miss the bigger picture. Rebate revenue is valuable, but what about cost savings generated through payment automation (i.e. reduced labor and materials costs)?

When looking at the total cost of ownership in your electronic payments program, specifically when it pertains to commercial cards, you must also analyze the additional labor required for: supplier enrollment, managing un-swiped or mis-swiped cards, lost card numbers, reconciliation......

If your electronic payments provider does not manage the aforementioned additional labor on your behalf (at no cost), than you may not be getting as much out of your electronic payment program as you think.