INDUSTRY BACKGROUND

The B2B payment industry is shifting, as more buyers and suppliers address high costs, automate manual payment processing, and adopt digital payment solutions. Virtual cards are quickly becoming the preferred method of payment for enterprise buyers because they are significantly more secure than other payment modalities and offer better control for procurement and AP organizations. As AR teams are challenged to accept a widening array of payment types, including virtual cards, they are looking for processing solutions that minimize costs, reduce manual workloads, increase security, and ultimately optimize cash flow.

AT A GLANCE

• 52% Virtual cards will make up 52% of U.S. mid-to large-market commercial card spend by 2025.
• 73% of businesses that automate their payment processes are improving liquidity, reducing DSO and strengthening customer relationships.
• 90% of CFOs plan to automate their accounts receivable operations to fix payment errors and delays.

THE CHALLENGE

Before working with Boost in 2022, Ferguson was exploring ways to enhance its payment processing experience. Among their priorities were reducing customer friction and managing the costs associated with diverse payment methods. 

Ferguson was was committed to addressing the increase in virtual commercial card payments, recognizing the need for a more efficient process to handle the broad spectrum of transaction sizes. The goal was to alleviate the delays caused by manual processing of authorization emails, which sometimes resulted in payments not being processed on the day of receipt.

Manually processing credit card authorizations and processing a constant stream of virtual card payments demanded a considerable amount of time and resources from the Ferguson credit team. With a significant number of payments arriving daily, and notable peaks in activity mid-month, the centralized credit operations team occasionally needed support from other departments to manage the workload and minimize delays.

In response, Ferguson explored third-party B2B payment solutions aimed at enhancing payment efficiency, lowering credit card processing fees, and ensuring seamless integration with their current systems without complicating their accounting processes. The ideal solution would also be marked by straightforward cooperation and a history of successful initial deployments, facilitating a smooth transition to a more automated payment framework with remittance data in formats that would not add any additional cash application accounting burdens. 

THE SOLUTION

Ferguson enlisted Boost for a more efficient and streamlined payment process. By directing virtual card payments directly to....Read more