Single Use Accounts--Preventing Check Fraud While Streamlining Payment Processes
According to findings published in the 2015 AFP Payments Fraud and Control Survey, 62 percent of companies were targets of payments fraud in 2014. The most targeted methods of payments were checks (77 percent), credit/debit cards (34 percent), and wire transactions (27 percent). Incidentally, checks were also the payment method most likely to result in financial loss, with 45 percent of the companies that experienced a loss due to fraud reporting that checks were involved. Despite the prevalence of check fraud, the survey also revealed that fully 70 percent of B2B payments are still made via check.
These numbers clearly indicate that a change in the way businesses initiate and receive payments is in order. While multiple possible solutions exist to reduce check fraud, it is important to consider the implementation of payment strategies that will meet other key objectives as well. For instance, while reducing check fraud, a viable payment solution must also streamline the payment process and increase the profitability of the entire enterprise across the board if it is to be effective.
One tool in a comprehensive payment solution strategy is the utilization of single-use accounts (SUAs) or virtual cards. This versatile electronic payment tool eliminates the need for a physical check or card. It offers speed, convenience, and flexibility for both the payer and payee in a transaction. With over 15 years of experience of executing single use payments, WEX Health has found that the ease of implementation is also a major benefit to both parties in the transaction requiring no new resources or processes.
How does it work? SUAs allow the payer to generate a single electronic card number for each payment. It provides a 16-digit virtual account for each payment and lets the payer set the credit limit to the specific payment amount and the valid date range. For payers with a large volume of transactions (such as payments of insurance claims, healthcare claims, or retail/catalog payments, for example), this can be an ideal solution because it eliminates the need for time-consuming origination of paper checks, while providing additional security and anti-fraud control. Additionally, SUAs automate the process of transaction matching and reconciliation, a huge time-saving feature that cannot be underestimated.
Prelude's PayPilot allows SUA payment processing as just one of its payment solution options. We have partnered with WEX Health, a pioneer in virtual payments, to offer their single use card in PayPilot. This innovative payment platform integrates seamlessly with your existing systems and provides additional layers of security while enhancing your ability to process payments in the most efficient and effective way. Prelude can even interface PayPilot with antiquated, legacy systems to apply this payment method.
If you would welcome more information concerning how PayPilot can meet and even exceed your expectations, please contact us. We will be happy to show you what Prelude's payment solutions can do for your enterprise today.