Virtual card payments are a great way to pay suppliers while reducing expenses and generating revenue. If you already use a purchasing card or electronic payments through your bank to pay your suppliers and vendors, you may be missing the big picture in supplier payments optimization. The fact is, most treasury bank programs fall short in supplier conversion success rates. Store Financial is a full-service provider, encompassing the entire process chain, which ensures maximum supplier conversion to card payments. Plus, Store Financial has the most secure B2B payment solution available – more secure than check, credit card and ACH payments, and even other virtual card payments. Utilizing our Custom Loop™ platform, the highest level of payment security is achieved. Custom Loop™ is a controlled authorization process that keeps only your selected network of suppliers and vendors “in the loop” for the right payment, in the right amount, at the right time. We remove all the noise and clear the way to engage your suppliers in a one-on-one payment relationship, allowing you to strengthen ties – and your brand. To find out how you can utilize Store Financial’s Custom Loop™ platform to emphasize your brand while servicing your customers and optimizing your payment process, see our presentation titled, Transform Accounts Payable Into a Revenue Center.

1. Supplier Payment
Optimization with
Virtual Card Payments
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2. Store Financial at a Glance
About Store Financial Select Valued Clients
Providing card payments across the world since 2004
Manages 650 card programs for 450 corporate payers
Issuing payments in four currencies: USD, CAD, EUR,
and GBP
Support 24/7 in English and French
Processing about $2 Billion in B2B payments in 2014
?
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3. B2B Payments are Evolving
90%
80%
70%
60%
50%
40%
30%
20%
10%
0%
Use of Checks for
B2B Payments
2004 2007 2010 2013
Likelihood of Converting Major
Suppliers Payment Method from
Check to Electronic
48%
8%
19%
25%
Very Likely
Somewhat Likely
Not at all Likely
Already Have
Source: 2013 ePayments Survey, The Association for Financial Professionals
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4. Corporate Payments Today
Typical B2B Payment Mix Optimize your Payments
Checks
50%
ACH
35%
P-Card
5%
Wire
Transfer
10%
Know your
Company
Understand
Optimization
Initiatives
Leverage
Technology
Partners
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95% of current payment mix
COSTS corporates money
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5. What variables drive the most value for your company?
Payment
Optimization
Cost Per
Payment
Improving
DPO
Early Pay
Discounts
AP
Processing
Cost
Discount
Capture
Card
Incentives
Trade
Terms
Card
Rebates
Payment
Float
AP
Automation
Virtual Card
Dynamic
Discount
Supply
Chain
Finance
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6. Understand Optimization Initiatives
Early Pay Discounts
• Static or Dynamic?
P-Card
Process/Cost Reduction
• AP Automation, Outsourcing, Payment Types
ACH
V-Card
Check
V-Card
• Extending terms, Supply Chain Finance
Card Incentives/Rebates
V-Card
Trade Terms
• P-Card, V-Card, what are the differences?
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7. Leverage Technology Partners
Understand where your team excels…
…and where you can leverage a partner’s expertise.
• Supplier Relationships
• Knowledge of Internal Process
• Business Knowledge
Internal
Strengths
• Scale
• Supplier Enablement
• Technology/Security
Partner
Strengths
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8. Begin your Optimization Effort with Cards
Fastest Return on Investment
• 57% of businesses already accept cards according to recent AFP study
• 37% accept cards for transactions over $5,000
Supplier Enablement
• Optimization success is driven by supplier participation in your program
• Profitable enablement campaigns are nearly impossible without a partner
Physical
P-Card T&E Card
Virtual
V-Card
Straight Through
Processing
Card Options:
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9. What Is A Virtual Card?
B2B payment using
the MasterCard
payment network
Single-use card
issued to specific
supplier for specific
amount via Store
Financial’s Custom
Loop™ private-label
processing service
Secure, 16-digit
payment number…
No plastic card
needed
Less costly &
reduced risk
versus issuing
check or ACH
Universally
accepted by
any supplier
with card
acceptance
capabilities
********1234
A V-Card Is::
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10. Virtual Card Benefits
Generate a
rebate for
the buyer
organization
Can be used to
pay any invoice
for any payment
amount
Coexist with
P-card and
T&E card
programs
Eliminates
1099 filing
requirements
V-Card Payment Benefits::
Most secure
B2B payment
Does not require
changes to your
existing banking
relationship or
ERP system
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11. P-Cards & V-Cards Coexist
P-Card Payments V-Card Payments
Convenience
Virtual, Single
Use Cards
“Walking Plastic” Lower Supplier
High Rebate /
Interchange
Limited Supplier
Acceptance
Acceptance Fees
Targeting ACH and
Check Spend
Higher Supplier
Acceptance
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12. Full-Service Virtual Card Payment Program
Store Financial Program
Differentiators
• Supplier conversion and enablement
• Lower supplier acceptance fees
• Virtual card management and delivery
• Buyer and supplier support
• Reconciliation tools
Past Supplier Enrollment
Campaigns have failed…
…Why?
• Wrong Product: P-Card
• Not All Variables Considered
• Poorly Planned Enablement
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13. Supplier Acceptance Rates
Not All V-Card Programs Are The Same
Standard
Credit Cards
and P-Cards
Large Ticket
Adjustment
Capabilities
Variable
Supplier
Fee
Structure
Reduced Acceptance Cost
Private
Network
V-Cards
Store Financial Payment
Optimization Programs
Standard Bank
Programs
$ Highest $ Lower
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14. Where Store Financial Virtual Cards Fit
Virtual Cards allow you
to capture more rebates
at all levels of spend
P-Card
ACH
Wire
V-Card
Check
V-Card
V-Card
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15. Supplier Enablement = Success
Supplier Friendly Practices
Special Focus on Suppliers
• Detailed payment education
• Enabling card-acceptance
• Working with supplier’s merchant
acquirer to lower card acceptance costs
• Continuous supplier relationship
management
Store Financial creatively
enables supplier payments.
Supplier Benefits
• Faster payment/reduced DSO
• Lower acceptance costs
• Enhanced remittance data
• Improved reconciliation efficiency
• Enhanced security of payments
Issuing
Acquiring
Store Financial
Bank
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16. Supplier Enablement Process
Supplier
Selec t ion
Supplier Analysis– Targeting the highest opportunities – 100% supplier targeting
is also possible.
Supplier Marketing – Buyer branded campaign with buyer’s preferred “tone.”
Store Financial on “behalf” of buyer markets and contacts all targeted suppliers.
Supplier Activation – Each supplier logs into the portal to provide credentials,
payment preferences and agrees to card acceptance.
Profile Validation – Each supplier is validated along with confirmation of card
acceptance credentials.
Profile Management – Suppliers are able to self-administer profiles. Each time a
profile is modified, the credentials are re-validated.
Payment & Remittance – Remittance data is delivered to suppliers in customized
formats to improve reconciliation efficiency.
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3
4
5
6
Supplier
Market ing
Profile
Act ivat ion
Profile
Validat ion
Profile
Management
Payment &
1 2 3 4 5 6 Remit tance
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17. Sample Revenue Opportunity
SUPPLIER ENABLEMENT
Terms Total Spend 10% 20% 30% 40% 50%
< 2% Discount $ 2,328,811 $ 1,467 $ 2,934 $ 4,401 $ 5,869 $ 7,336
> 2% Discount $ 1,438,260 $ - $ - $ - $ - $ -
Pay Immediate $ 373,332,403 $ - $ - $ - $ - $ -
Within 15 Days $ 32,908,008 $ - $ - $ - $ - $ -
Within 20 Days $ 7,332,458 $ 4,619 $ 9,239 $ 13,858 $ 18,478 $ 23,097
Within 30 Days $ 444,790,441 $ 328,789 $ 657,578 $ 986,367 $ 1,315,156 $ 1,643,945
Within 35 Days $ 10,317,359 $ 9,533 $ 19,066 $ 28,600 $ 38,133 $ 47,666
Within 45 Days $ 314,290,184 $ 408,106 $ 816,212 $ 1,224,317 $ 1,632,423 $ 2,040,529
Within 60 Days $ 3,530,667 $ 5,240 $ 10,479 $ 15,719 $ 20,958 $ 26,198
Grand Total $ 1,190,268,590 $ 757,754 $ 1,515,508 $ 2,273,263 $ 3,031,017 $ 3,788,771
Incremental
Borrowing Cost - 2% $ 63,994 $ 127,988 $ 191,982 $ 255,976 $ 319,970
Buyer Rebate $ 693,760 $ 1,387,521 $ 2,081,281 $ 2,775,042 $ 3,468,802
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18. Getting Started
Buyer signs NDA and provides supplier list
Store Financial conducts supplier analysis
Program plan and proposal submitted to buyer
Supplier payments optimization agreement signed
Co-develop and approve supplier enrollment campaign
Approves A/P process and ERP file integration
Buyer upfront cost = $0
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3
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Leave the rest to Store Financial
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19. How can your company
optimize payments
and earn rebates?
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