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1. Is this a requirement? Will it affect our vendor-client relationship if we decline?

This is the preferred method of payment and part of an effort to reduce checks and eliminate paper waste and inefficiencies. It is not required. This will also decrease the time it takes to complete payment and is more convenient than handling a check.

2. Are there any fees associated with this method of payment?

Payments will be processed as credit card transactions, so your standard merchant fees will apply. There are not any direct fees imposed by the client or issuing bank.

3. Is the client willing to absorb the fees?

It is not the client’s intention to absorb fees associated with your Merchant Service Provider.

4. Is it safe to keep the card number on file?

The new payment process keeps that card account with a credit limit of $0 until an invoice has been approved for payment. Once it is approved, the card will be funded with the exact amount due and you will receive a remittance, which is an electronic confirmation that the card is ready to be charged. This technology makes keeping a card on file completely safe.

5. What if our company policy does not allow us to keep a credit card number on file?

Would your company allow you to maintain only the 1st 12 numbers on the card? For security reasons, the remittance advice, which authorizes payment, only identifies the last 4 digits of the card; upon receipt of the remittance, you would have the complete card information in order to process the transaction.

6. Will I receive payment for all of our company locations?

Receipt of payment will remain the same. If you currently receive 1 check for multiple locations, you will maintain 1 card number on file, and the remittance will identify the appropriate location by invoice number, date, and amount. If a separate check is sent to each remit-to address, a unique card number will be assigned for each location.

7. Will the net terms change? How soon will we get paid?

Your terms will remain the same; however, you do gain float. Funds are typically deposited within 48 hours after processing the transaction.

8. How does this affect our invoicing? What about credits and short-pays?

Your invoicing, current procedures, and client contacts will remain the same.

9. What about past due / outstanding invoices?

Please discuss this with your Accounts Payable contact.