Visa has announced the launch of a new pilot designed to reduce friction for merchants by automating virtual card acceptance.
The Visa AR Manager solution, which will be available for limited pilot in November before a broader expansion, is aiming to save time and costs that traditionally come with manually accepting payments from a range of different banks.
In a statement, Visa said the innovation will automate the virtual card transaction process by retrieving card account details, initiating the authorisation and clearing steps on the supplier’s behalf. It will then provide reconciliation data to close out invoices in the supplier’s Enterprise Resource Planning (ERP) system.
Businesses have rapidly turned to virtual cards as the preferred method for processing accounts payable. A recent study from the Institute of Commercial Payments found that 84% of commercial merchants cited getting paid more quickly as a key reason for utilising virtual cards as a preferred acceptance mechanism.
Speaking on the announcement, Abhishek, Global Head of B2B Acceptance at Visa Commercial Solutions said: “This innovation is a direct result of deep, meaningful conversations with our valued partners and customers, who have highlighted the friction they experience today with virtual card transaction processing.”
He added: “Visa AR Manager will enable us to create an optimal transaction experience for our commercial customers, automating an antiquated process and transforming the way they work.”
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