In today's rapidly evolving business landscape, commercial cards have emerged as a strategic tool for both B2B buyers and suppliers. For buyers, card payments can offer a range of benefits that significantly enhance business operations and financial performance. However, for suppliers, the benefits of commercial cards can oftentimes be less obvious, given card fees, making the proposition seemingly less attractive. Furthermore, financial institutions who issue cards to buyers, have ended up in the crosshairs between buyers and suppliers by only focusing on delivering value to buyers. This has led to a strained multiparty relationship where everyone is seeking something better.
Visa commissioned Forrester Consulting to conduct a research study with an objective to help us understand the chasm between these three parties and if – or how – custom interchange programs, which re-examine the cost-value equation, could be used to close the gap. This blog post delves into the results of the study; the strategic value of commercial cards, the challenges faced by suppliers, and the potential for growth through a value-centric approach.
Commercial cards: A strategic asset for B2B buyers and suppliers
Commercial cards provide unique advantages to buyer and suppliers. For B2B buyers, these cards offer greater security, payment predictability, and improved working capital. Nearly 50% of B2B buyers surveyed use commercial cards because of the extended days payables outstanding (DPO) they offer, which helps optimize working capital by acting as a form of short-term lending.¹
Beyond working capital, commercial cards drive value for businesses by making payments easy and fast, while also offering security benefits. They provide visibility over spending and create efficient accounts payable processes. Nearly 70% of B2B buyers who participated in the survey reported using commercial cards for third-party supplier payments due to the secure transactions and fraud protection they offer.¹ Additionally, two-thirds of respondents cited ease of payment and transaction processing as primary reasons for card use.¹
As for suppliers, the benefits of commercial card payments typically fall into four categories: increased gross revenue, improved debt collection, reduced days sales outstanding (DSO) and process efficiencies.² A vast majority (70%) of the suppliers surveyed for our study also reported that they have reduced fraud risk by accepting commercial cards for B2B transactions.¹
Challenges Faced by Suppliers
Despite the numerous benefits, suppliers often face significant challenges when it comes to accepting commercial cards. High processing fees are a major barrier, with 68% of the surveyed suppliers not currently accepting commercial cards citing these fees as the primary reason.¹ Suppliers also face internal and external costs associated with setting up to accept card payments, which can be a deterrent. Moreover, the high volume of chargebacks and chargeback fees limits suppliers' ability or desire to expand card acceptance for B2B transactions.¹
Lack of internal awareness of the benefits of accepting commercial cards further restrict suppliers' appetite for card acceptance.¹ In fact, a Total Economic ImpactTM study by Forrester Consulting, which compared the costs versus benefits of commercial card acceptance in the U.S., shows that for an organization based on interviewee data, commercial card acceptance delivers a return on investment (ROI) of 132% over three years, which equates to the net benefits of 420 bps per transaction.² Education is therefore needed to combat the common perception that commercial cards are an expensive payment method for suppliers to collect on invoices.
Empowering the B2B payment ecosystem through custom interchange programs
To overcome these challenges and drive commercial card growth, a value-centric approach is essential. Custom interchange programs can balance both cost and value for commercial cards, thus benefiting both B2B buyers and suppliers as well as financial institutions.
Our study found that suppliers are increasingly interested in custom interchange programs, with 72% of surveyed suppliers willing to expand card acceptance for value-based fees. And of the suppliers who already participate in custom interchange programs, 90% were satisfied with their program.¹
Buyers, too, welcome this new approach. Most of the B2B buyers we surveyed said they would expand their commercial card use if issuers offered more flexible payment terms and better system integration and 62% would be willing to forgo receiving incentives if they were able to use their commercial cards with more suppliers.¹
Card issuers also recognized the upside of custom interchange programs. Respondents at issuers believed that custom interchange programs can help increase suppliers’ acceptance of commercial cards.¹
Conclusion


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- Drive Commercial Card Growth With Custom Interchange – Empower The B2B Payment Ecosystem With A Value-Centric Approach, a commissioned study conducted by Forrester Consulting on behalf of Visa, September 2024.
- The Total Economic ImpactTM of Commercial Credit Card Acceptance, a commissioned study conducted by Forrester Consulting on behalf of Visa, March 2021, updated June 2024. Results are for a composite organization.
The Total Economic ImpactTM of Commercial Credit Card Acceptance, a commissioned study conducted by Forrester Consulting on behalf of Visa, March 2021, updated June 2024. In this study, Forrester Consulting conducted two online surveys and qualitative interviews with commercial card decision-makers at organizations in the United States to evaluate the state of commercial card use from the perspective of B2B buyers, B2B suppliers, and issuers. Survey participants included decision-makers in selecting or managing the products, systems, and/or channels used to pay third-party vendors/suppliers for goods and services; decision-makers involved in selecting or managing the payment operations for B2B customers; and decision-makers involved in developing, approving, and/or managing commercial credit card programs at their organization. Questions provided to the participants asked about their current strategies, challenges, and goals in this space. Respondents were offered a small incentive as a thank-you for time spent on the survey. The study began in September 2023 and was completed in October 2023.