How Much Do You Know About Your P-Card Payments?
Posted on December 8th, 2008 by Katina »Permalink
Purchase cards or P-cards have become the new currency that more and more companies are using these days to make payments on a global scale. And why not? According to our friends at RPMG Research Corporation, the average administrative cost (sourcing, purchasing and payment activities) of a traditional Purchase Order (PO) process was reported to be about $89. For p-card transactions, the cost was reported around $19. Net savings: $70 per transaction. This translates into a transactional cost savings of more than $34 billion within North America on an annual basis. (Source: 2007 Purchasing Card Benchmark Survey Results by Richard Palmer and Mahendra Gupta, RPMG Research Corporation).
While it’s good to see that Corporate America is adopting cost saving measures like P-Card programs especially now, when we are officially in a recession, P-card expansion also leads to increased chances of fraud. Currently companies have no way to proactively monitor and flag exceptions like duplicate payments, unauthorized transactions, unusual vendors that ultimately result in the loss of millions of dollars in company revenue. Well, Approva does have a solution to that problem. The Approva P-Card Insight dramatically increases management’s confidence in expanding P-card usage by providing real-time visibility into the whole process. Approva can help you replace manual reconciliations with a more streamlined automated reconciliation process and alert managers on suspicious P-card activity instantaneously.
If you want to know more, join us for a free webcast on “Improve Your Visibility and Controls for P-Card Programs” by registering here.
Tags: P-Cards, Purchase Cards, Fraud, Controls Testing, Approva,
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