Visa is launching a pilot of Visa AR Manager, an innovative solution designed to streamline virtual card acceptance for commercial merchants. This new offering automates the virtual card transaction process, enhancing efficiency and reducing manual efforts, ultimately providing a seamless digital payment experience for issuers and suppliers in the commercial B2B sector.
23 October 2023 – Visa, a global leader in payments, has revealed the upcoming pilot launch of Visa AR Manager, an innovative solution designed to alleviate the challenges faced by commercial merchants when dealing with virtual card acceptance. This novel offering, set to begin a limited pilot in November, underscores Visa’s commitment to delivering a seamless digital payment experience for both issuers and suppliers while expanding support for the commercial B2B community.
Commercial businesses have increasingly turned to virtual cards as their preferred method for processing accounts payable, driven by the clear benefits of faster payment receipt. According to a recent study by the Institute of Commercial Payments, 84% of commercial merchants identify quicker payment as a primary reason for adopting virtual cards as a preferred acceptance mechanism. However, the process of virtual card acceptance can be time-consuming, manual, and costly, often requiring different protocols for each bank from which a merchant receives payments.
Visa AR Manager directly addresses this pain point by automating the virtual card transaction process. It retrieves card account details, initiates authorization and clearing steps on the supplier’s behalf, and provides timely reconciliation data to facilitate the closing of invoices within the supplier’s Enterprise Resource Planning (ERP) system.
Abhishek, Global Head of B2B Acceptance at Visa Commercial Solutions, stated, “This innovation is a direct result of deep, meaningful conversations with our valued partners and customers, who have highlighted the friction they experience today with virtual card transaction processing. Visa AR Manager will enable us to create an optimal transaction experience for our commercial customers, automating an antiquated process and transforming the way they work.”
Visa AR Manager is set to begin pilot customer onboarding in November, with broader availability expected in the new year. This solution complements Visa’s existing strategic partnerships, demonstrating the company’s commitment to continuous innovation in addressing merchant friction related to commercial payment acceptance.