spend increased from $80 billion in 2003 to $110 billion in 2005 43% of e-procurement transactions are paid via check By 2008 over 70% of all organizations will have a PCard program, up from 60% in 2005 The study goes on to discuss moving a purchasing card program to A/P. “The basic idea is to use the card to settle P.O.-driven transactions, like you would use ACH or check. The company captures the rebates associated with p-card transactions and sidesteps the work processing check payments involve. Although these cards currently are not in widespread use, their popularity is growing,” Susan Avery (2005) states that according to the Aberdeen Group purchasing card benchmark report, best practice purchasing card programs “do not confine” purchasing to the traditional spending of low-dollar, high-transaction goods and services. These purchases include off-contract, non-traditional, non-purchase order, ad hoc, and incidental purchasing. Best practice purchasing card programs expand the purchasing card to the AP department. Issues One hurdle in the A/P PCard payment conversion is supplier enablement. This is often referred to as purchasing card supplier enablement or PCard supplier enablement. Every supplier must be contacted and informed of the payment change from check to the purchasing card, even if the supplier is already a purchasing card supplier. Some banks offer help in the conversion process (purchasing card supplier enablement) and other software companies provide technology to make the conversion efficient and easy for the financial institution, client, and supplier. According to a joint industry survey, “In terms of impeding an organization’s card program growth, 61% of end-user respondents reported that suppliers’ resistance to (or non-acceptance of) card payments is, at a minimum, somewhat of a problem. Not surprising, the transaction acceptance fee factor is overwhelmingly the number-one reason suppliers give end-users for resisting or not accepting card payments. Further, nearly 50% of respondents stated they sometimes or frequently encounter suppliers that impose a surcharge in conjunction with card acceptance. End-users employ varying approaches in response to the challenges; for example, educating suppliers on the benefits of card payments—a task that is often completed by program management and/or procurement staff." References Business terms Accounts payable Procurement