ACCELERATING GROWTH

Opening the door to new opportunities, greater efficiency and sustained growth with commercial card acceptance

Abhishek, VP and Global Head, B2B Acceptance, Visa Commercial Solutions

B2B suppliers around the globe are eager to find new ways to gain a competitive advantage and propel business growth. However, there’s one solution they may not have considered to help them run their businesses more profitably and build stronger customer relationships: Accepting commercial cards for B2B payments.

Today, many suppliers continue to rely on traditional payment methods like checks, account-to-account payments or wire transfers. These payment methods come with significant administrative overhead, can be prone to fraud and can tie up working capital. Most importantly, they’re not equipped to keep pace with customer expectations or the speed of modern commerce.

There are several reasons B2B suppliers may not have considered commercial card acceptance as a payment option to help them overcome some of their pain points. They may perceive that merchant fees are too high for large commercial card transactions — or they may think that the process of switching to cards is too complex.

It’s time to challenge these perceptions so that B2B suppliers can expect more with commercial card acceptance. By accepting commercial cards, the benefits consistently outweigh the costs and can help suppliers unlock new value.

Did you know, B2B suppliers could expect to increase sales when they accept commercial cards? Additionally, accepting commercial cards can also help decrease time spent on reconciliation and reduce bad debt.

Four core benefits of commercial card acceptance

To illustrate how commercial card acceptance can benefit suppliers around the world, Visa commissioned a series of research studies across five regions that explore the challenges and opportunities of accepting commercial cards.

Our research identified four core benefits of commercial card acceptance: increased gross revenue, reduced financial losses from bad debt and fraud, faster access to working capital through reduced days sales outstanding (DSO) and improved operational efficiencies. Below, we explore each of these benefits and share important insights across each region. Overall, we found that modernizing payments with commercial card acceptance can turn a cost center into a growth driver. In addition, while commercial card acceptance rates vary broadly between regions — from 25%-80% — regions with higher acceptance rates show stronger return on investment (ROI).

76% of suppliers in Latin America and the Caribbean perceived an increase in incremental revenue with commercial card acceptance.

Suppliers who accept cards can expect to streamline payment receipt, drive revenue gains and accelerate growth.

They’re also equipped to meet changing customer expectations, as well as the desire to leverage commercial cards to pay for business transactions. The ability to accept commercial card payments provides added convenience for customers, which deepens relationships and can help power business growth.

Research from various regions documented the impact:

In North America (NA), respondents reported a 132% return on investment for commercial card acceptance over six months.¹
For Central Europe, the Middle East and Africa (CEMEA) and Asia Pacific (AP), 76%² and 50%³ of card acceptors, respectively, reported that card acceptance drove an increase in sales.
Further, 76% of suppliers in Visa-commissioned Latin America and the Caribbean (LAC) research perceived an increase in incremental revenue with commercial card acceptance.⁴ In addition, suppliers in the region indicated that they would expect to lose 21% of business if they stop accepting cards.⁴
In Europe, 54% of card-accepting suppliers indicated that they saw an increase in sales — reporting an average uplift of 667 basis points, while the overall average increase stood at 359 basis points across all suppliers.⁵ And European respondents said that nearly half (47%) of all carded sales are net new sales.⁵

49% of suppliers in Asia Pacific experienced a decrease in bad debt and write-offs.

Suppliers that accept commercial cards may reduce bad debt, decrease the risk of bounced payments and lower fraud risk.

Commercial card acceptance helps businesses realize higher collection rates due to the immediacy of card payments, avoiding debt collection and its associated costs.

Commercial card acceptance also streamlines processes related to disputed payments, as well as payments that fail to clear due to an incorrect amount or other reasons. These problems require supplier intervention, which takes time and creates additional costs, totaling 2.5% of invoice value, according to Visa-commissioned research in Europe.⁵

Suppliers around the world who began accepting commercial cards reported a reduction in financial losses associated with bad debt and fraud.

In NA, Visa-commissioned research found that suppliers accepting commercial cards saw a 20% improvement in debt collection.¹
In addition, 48% of card-accepting merchants in Europe reported a decrease in bad debt or write-offs due to adopting card payments; merchants experiencing benefits noted an average improvement of 329 basis points.⁵
For CEMEA and AP, 47%² and 49%³ of card acceptors, respectively, reported a decrease in bad debt and write-offs.

67% of suppliers in North America saw a decrease in DSO.

Suppliers who accept cards for B2B payments can expect to reduce DSO and see faster cash conversion cycles.

The transition to commercial cards for B2B transactions gives suppliers enhanced flexibility to deploy working capital strategically.

Visa-commissioned NA research found that suppliers accepting commercial cards experienced a 67% decrease in DSO — a 30-day improvement.¹
In addition, 40% of suppliers in Visa-commissioned European research saw an improvement, with the average of a five-day decrease in DSO for suppliers accepting commercial cards.⁵

90% less time spent on invoice reconciliation and fraud-related administrative and legal tasks for suppliers in North America.

Suppliers who accept commercial cards can expect more efficient operations, freeing team members for more impactful projects.

Card acceptance positions suppliers to streamline processes across payments workflows. They can spend less time on reconciliation and reduce the resources spent on administrative tasks, such as correcting payments with inaccurate references and amounts.

Visa-commissioned research in NA demonstrated that suppliers that accept commercial cards spend 90% less time on reconciliation and have reduced the time spent on fraud-related administrative and legal tasks by 90%.¹

We found similar benefits across other regions:

Respondents who accept commercial cards in CEMEA and AP reported saving 13 minutes² and 12 minutes³ per invoice, respectively, in card-based payment reconciliation. These savings accumulate rapidly when businesses reconcile thousands of invoices annually.
In addition, 100% of suppliers in the LAC region said accepting commercial cards made it easier to create, collect and reconcile payments compared to other methods.⁴ And 92% saw a decrease in error rates.⁴
Suppliers in Europe reported that card acceptance reduces operational costs by 4% in everyday accounts receivable processes.⁵

Commercial card acceptance may be the advantage suppliers never knew they needed

Today, the right tools can simplify the rollout and implementation of commercial card acceptance, making it easier to embrace this rewarding change.

Want to learn more?

To learn more, download our regional white papers: Understanding the impact of commercial card acceptance across the globe.

Read the white papers

Are you ready to unlock your business opportunity with commercial card acceptance?

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The Total Economic Impact of Commercial Credit Card Acceptance: An Update, Forrester Consulting. Originally published March 2021, updated June 2024. The referenced study was conducted in the U.S. and actual results may vary by merchant.
Research was commissioned by Visa and conducted by KoreFusion among 1,010 large CEMEA merchants between August and October 2024. The reported beneﬁts are based on data from surveyed merchants at a speciﬁc point in time. The study did not collect information on the time required to realize these beneﬁts. Results may vary for individual merchants.
Research was commissioned by Visa and conducted by KoreFusion among 1,000 large AP merchants between August and October 2024. The reported beneﬁts are based on data from surveyed merchants at a speciﬁc point in time. The study did not collect information on the time required to realize these beneﬁts. Results may vary for individual merchants.
IDB, March 11, 2024, Future Growth Opportunities for Latin America and the Caribbean Report.
Research was commissioned by Visa and conducted by KoreFusion among 850 large European merchants (>$50M USD turnover) between July and September 2024. The reported benefits are based on data from surveyed merchants at a specific point in time. The study did not collect information on the time required to realize these benefits. Results may vary for individual merchants.