Comdata Fleet Fuel Card / Virtual Credit Card Blog

Vendor Enrollment Strategy for Your Virtual Payment Program

Developing the strategy

One of your top priorities should be to develop a vendor enrollment, or supplier enablement, strategy for your virtual mastercard payment program. There are several industry-leading virtual payment processors who provide dedicated vendor enrollment teams, and your best bet is to work with one of these companies.

If you're doing this on your own, however, there are several things to consider:

1. Set goals and determine metrics. Before you start, have an understanding of what success looks like. What percentage of vendors do you think you can enroll, and in what time frame? What is your ROI goal for this program? What tools will you need to track your success?

2. Determine which of your vendors already accept credit card, or even virtual payments. These vendors will be your first targets. Because they already accept these types of payments, they most likely already know the benefits involved and may require significantly less work to set up.

3. Develop your campaigns. When developing your vendor enrollment campaigns, you will want to consider three main things: vehicle, messaging, and timing.

· Vehicle: How do your vendors communicate? What is the best way to reach them? Most successful vendor enrollment campaigns use a combination of phone, letter, and email communications.

· Messaging: What messages will resonate most with your vendors and suppliers? What questions will they have, and what are the benefits that will have the greatest impact on each? When developing your messaging, you may want to segment your vendors by size or by industry, and tailor the wording and images used to each segment.

· Timing: The schedule for each vendor enrollment campaign will vary, depending on your relationship with vendors, any internal deadlines, the size of your vendor base, and the number of vendors already enrolled. Whatever you do, make sure to create a campaign calendar in advance. Knowing which date to send which type of communication to whom will help keep you accountable and ensure that your campaigns stay on track.

4. Internal training. Any associate who touches the virtual payment program or vendor relationships should be trained on the change and how to handle vendor requests. Companies should use a variety of tactics such as email, live training sessions, online training sessions, message boards, and internal newsletters to keep employees up-to-speed.

5. Vendor support. Finally, how will you continue to support your vendors as they go through these changes in how they accept payments from your company? Who will handle any incoming questions and ensure that each vendor is comfortable with processing virtual payments?

Paycard Program for Business

Below are some best practices that can guide you toward success when implementing a paycard program for your employees.

· Create and communicate a measurement plan that lets managers know how paycards will be tracked and how success will be measured. Similarly, set benchmarks and metrics for your entire company, so you will know what success looks like and what it will take to get there.

· Understand the resources you have available and what their capabilities are. The best laid plan will mean nothing if you don't have the staff or funds to roll it out. Tailor your implementation to fit the resources you have.

· Develop an internal communications campaign that brings the conversation to your employees. Where and how do they communicate? What method will have the most impact? Consider meetings, online trainings, bulletin boards, contests, newsletters, check stuffers, and email campaigns. Ensure that messaging is consistent and that each employee understands the benefits and expectations associated with switching to the payroll card.

· Incorporate paycard materials into new hire packets and trainings, and make sure that both your HR and finance departments fully understand the product and are prepared to answer employee questions.

· Phase your paycard rollout by region or district, depending on how your company is organized. This will allow you to learn and make necessary adjustments as you go, and it also allows you to focus your efforts on one group at a time.

· Solidify an executive sponsor and your organization's commitment to this program before moving forward. This is the most important step as it will mean rock-solid presentations to upper management, clear ROI and value proposition, and a strong, feasible plan.

What is a vendor enrollment program?

If you’ve started looking into a virtual payment, or e-payment, solution for your company, you know that there are many benefits for both your business and your suppliers. However, instituting virtual payments for your business means that your suppliers and vendors will have to change how they accept payments.

 

The good news is that many vendors most likely accept credit cards already, and therefore are equipped to take virtual payments. If you have vendors that don’t already accept credit cards, it’s not a deal-breaker. Instead, look for a virtual payment provider that offers vendor/supplier enrollment support. Most providers do not offer this kind of support, so it’s important to ask this question when doing your research.

 

The purpose of a vendor enrollment program, also sometimes referred to as a supplier enablement program, is to register vendors who don’t currently accept credit card payments to do so, and then to set them up to receive your virtual payments. Because virtual payments are processed the same way credit card payments are processed, this will enable your vendors to begin receiving payments via your virtual payment processor.

 

A good vendor enrollment program uses a combination of letter, phone, and email communications to convey the benefits of enrolling to your vendors. Since accepting card payments may cause some vendors to incur an additional processing fee, it is crucial that the advantages of enrolling in this type of program are made clear. Vendor benefits include, but are not limited to:

• Guaranteed payment through the credit card network (depending on your virtual payments processor)
• Reduced risk of lost and stolen checks
• Prompt settlement, minimizing payment delays and collection costs
• Detailed remittance information
• Status as a preferred vendor

 

Implementing a virtual payments solution for your business is a smart decision, and one that can have a positive impact on both your bottom line and your vendors and suppliers. Therefore, when you roll out a virtual payments program, it is important that you keep your valued vendors in mind. They are, after all, what keeps your business running. A vendor enrollment strategy is crucial to the success of any virtual payment program, as it allows vendors who are not currently receiving virtual payments to begin doing so.

 

Comdata Virtual Payment application is safe, secure, and easy to administer. It is ideal for mid- to large-size companies focused on achieving business process efficiency, cost savings, and incremental margin improvement.

What Is the 1099 Form?

If you are a new business owner, this may be your first time filing an IRS 1099 form. This form is a tax document required by the IRS to report various types of taxable income on behalf of your business. Your company must file one of these for each independent contractor to whom you've paid at least $600 during the course of the calendar year (Jan 1- Dec 31).

When is it due?

The 1099 is typically required by the IRS in March of each year, although the deadline differs depending upon if you are filing manually or electronically. The deadline for electronic filing is usually a little later than the manual filing deadline, since it is faster for the IRS to process.

You must also send a copy of this form to your independent contractors, as they use this information to file their own annual returns. When sending a copy to your contractors, you can choose to use the combined form 1099, which covers all 1099 transactions, even if they are different types of transactions.

How do I know if I need to file?

If your business has paid any independent contractor $600 or more during the calendar year, you are required to file the 1099 form. This may include attorney's fees, healthcare expenses, or office space and equipment rental. The 1099 applies only to business payments and excludes any personal payments you may have made. Non-profits, government agencies, profit-sharing plans, farmers' cooperatives, investment trust, landlords, etc. are all expected to consider filing this form.

It is important to note that several payments your business makes to outside suppliers may be exempt from the 1099 (i.e. you do not have to file the 1099 for these contractors). These include, but aren't limited to: payments to a corporation; payments for merchandise, phone service, freight, or storage; employee wages; wages to military employees who are on active duty; travel allowances; payments to a tax-exempt organization; and payments to a company whose Merchant Category Code (MCC) indicates that reporting is not required. Remember that there may be other exemptions, and you should always check with your tax professional or IRS instructions to be sure before filing.

What are my filing options?

You have the option to file the 1099 form either electronically or manually. However, if you have to file 250 or more 1099s, you are required by the IRS to file them all electronically. If you have fewer than 250 1099s, you can choose to file manually on paper forms. If you choose this option, you must also submit form 1096, which is a summary of all forms being submitted to the IRS. You will need to file one 1096 for each type of form you are submitting.

It can be difficult to keep up with the multiple tax and information forms you are required to file with the government each year, but there are many companies out there that offer services designed to make your tax filing experience as seamless and easy as possible.

Comdata offers integrated financial solutions that are changing the way companies manage data, pay employees, process transactions, and manage spending on key business purchases. Our fleet management solutions help you save money, grow your revenue, streamline operations, and minimize financial risks.

Paying Your Employees if a Natural Disaster Strikes

Using paycards to disburse employee payroll has a host of benefits, including lowered expenses due to the elimination of paper checks, increased convenience for cardholders, and reduced opportunity for lost checks and check fraud. Although not as publicized, paycards also have a tremendous benefit over other types of payroll disbursement when it comes to paying employees during natural disasters.

A paycard is a prepaid card onto which payroll administrators can load funds for banked and unbanked employees. Paycards are distributed upon employment, then automatically or manually loaded each pay period. Upon employment, employees keep their paycards in their possession and can access their funds via ATM or at retail locations. Paycards can be loaded from any location, so when natural disaster strikes, you can pay your employees instantly when they need it most.

There are numerous examples of companies who have paid employees during hurricanes and floods, when other companies could not. Employees keep their paycards in their possession, so when mail service has halted to a particular area, employees on the paycard payroll program still have access to their funds. Since paycards are accepted at most ATMs, employees are able to withdraw cash, even when banks are closed. They can also request cash back at most retail locations that accept debit cards. At times when your employees need emergency funds more than ever, your company can rely on paycards.

How do Virtual Payments Work?

What is a virtual payment?

A virtual payment is just that - a payment to your vendors that can be made electronically. Many companies find that virtual fees can be a great complement to paper and ACH payments. A unique account number is generated for every vendor payable, lowering the turnaround time for payments, reducing the risk of fraud, and making payments easy to track and analyze.

How do virtual payments work?

The process may vary from company to company. Essentially, your payables disbursement file is submitted to your processor. A virtual credit card number may be created for each vendor payment and delivered to suppliers by an e-mail remittance advice. Your vendors can process this payment as they would process any other, and they often receive settlement much faster than they might with other payment types. Your processor may then return an electronic file to your company for reconciliation.

Are they safe?

Yes, virtual payments can actually be safer than other forms of payment. Since everything is done electronically, you do not have to worry about lost or stolen checks, and unique vendor payable numbers protect your actual account information from being compromised.

Tips For Starting a Purchasing Program For Your Business

• Know who to involve

Executive sponsorship is key to rolling out any enterprise-wide initiative, particularly when it has to do with company financials. Executive sponsors will help you to push your purchasing program through and escalate when necessary, and they will provide the general support you may need to get buy-in from all involved stakeholders.

Most successful purchasing programs are run by a dedicated program administrator, who is responsible for effectively managing the program to ensure its continued growth and compliance to policy, as well as reporting metrics and challenges to senior leadership.

Finally, be sure to involve team members from your IT, tax, procurement, and finance departments. These members will help you to integrate the program with any existing systems, ensure compliance to internal and external regulations, and ensure that your new expense management solution stays on track. 

• Communicate, communicate, communicate

Starting a new program means that stakeholders will have questions and will want to know where to find the answers. Communications should run from executive leadership to cardholders, and should certainly involve the program administrator and management. Consider various forms of contact to determine which will work best for your company. Some companies have found that an interactive intranet site works best, while others have found that a weekly newsletter is most effective.

Be sure to continuously listen to your cardholders’ and vendors' feedback, as it will help you optimize your purchasing program, and post policies and other vital information in an easily accessible place.

• Take advantage of reporting and data analytics

Use data from your purchasing card provider to make smart business decisions. Understand where your company is spending, how much, and on what. Look for patterns, as well as outliers, and set appropriate spending and transaction limits per card, per employee, or per merchant. Search for opportunities to consolidate your company's vendor spend. If you are currently spending small amounts at many vendors, consolidating your spend to several key vendors will give you the volume you need to ask for greater discounts for your company.

2290 IRS Tax

If you are active in the trucking industry, you have most likely heard of the 2290 tax. This annual tax is sometimes referred to as the Heavy Vehicle Use Tax (HVUT) or Heavy Highway Vehicle Use Tax (HHVUT). The 2290 tax is collected by the federal government once a year, then distributed out to states for maintenance and construction of U.S. highways.

Who has to file this tax?

This tax is geared toward businesses that use roads heavily and frequently. If you own a commercial vehicle that weighs over 55,000 lbs, you are responsible for filing this tax every year. This tax also applies to new vehicles. The IRS 2290 tax on new vehicles over 55,000 lbs is due by the end of the month following the date that the vehicle was first used on public highways, regardless of when the vehicle was purchased.

When is it due?

The 2290 must be filed each year by August 31, to avoid facing late fees and penalties.

Filing options

There are two ways to file this tax: manual and electronic.

To file the 2290 manually, either visit the nearest IRS office to pick up a copy, or download and print from a trusted online source. 2290 taxes that are filed manually are also processed manually.

To file the 2290 electronically, first make sure that your e-filing service of choice is authorized by the IRS ( a complete list can be found here:http://www.irs.gov/efile/lists/0,,id=119598,00.html ). Companies that have been authorized by the IRS have passed the IRS Assurance Testing System (ATS) or Business Acceptance Testing (BATS) requirements, which means that their software can provide correct data in the proper format for processing by IRS systems. An IRS authorization does not mean that the company's e-filing system includes every possible scenario. Because of this, check to make sure that you are working with a reputable e-filer.

 

Managing Business Expenses

Consumers use virtual credit cards to prevent identity and data theft, which is on the rise as people are spending more money online.

A virtual credit card is created when a computer program that the user has downloaded generates a random credit card number. This number is then linked to an account and is used in the same way that a normal credit card is. A virtual credit card can be generated on demand and on the spot. By using a different number every time a purchase is made, it is impossible for a thief to make unauthorized purchases. Virtual credit cards can be used online, over the phone and when making mail order purchases.

Virtual credit cards have an expiration date and a security code just like a traditional credit card. Virtual credit cards can also be used for more than just one time purchases. These are very versatile tools for businesses and individuals that want to ensure that no unauthorized spending is going on. An individual can use the card to make multiple purchases on a single website or may choose to only authorize a specific prepaid amount.

Paperless Payroll - Why It's Good For Our Economy

The first benefit is that going paperless will save your company money.  This is because fees associated with delivering payroll such as cutting checks, stuffing envelopes, and delivering the physical payroll is eliminated.  Keep in mind, though, that some third party sources for paperless payroll may charge you a fee to provide your employees with access to the secure website with their passwords.

Of course, there is the fact that paperless payroll and direct deposits helps the environment as well.  When you help the environment by using less paper, you automatically help the economy to depend less on this natural resource.  The amount of paper that goes into a traditional payroll situation is quite disturbing over time, especially when you realize that paperless solutions are readily available.  By reducing your company’s consumption of trees, you decrease the amount of waste that gets added to landfills and help there to be less of a strain on the recycling industry thanks to your personal efforts.

Finally, employees will generally be eager to sign up for a direct deposit situation because it helps them save more effectively.  If some employees are struggling with debt, they will be less tempted to go right out and spend their paycheck because it is placed directly in their account.  This will help people pay off debt more quickly and help the economy gain momentum as consumer debt is steady decreased.