Visa has announced the upcoming pilot launch of Visa AR Manager, a new solution aimed at streamlining virtual card acceptance for commercial merchants. The company plans to automate virtual card payments to suppliers, streamlining payment experiences for merchants, according to a press release by Visa.
The Visa AR Manager will be available for pilot customer onboarding starting in November, with availability expanding more broadly in the new year, Visa stated.
Virtual card acceptance has become increasingly popular among commercial merchants, with 84% of them preferring virtual cards as an acceptance method to receive faster payments, according to a study by the Institute of Commercial Payments cited by Visa. However, the manual, time-consuming, and costly nature of virtual card acceptance, along with varying protocols for payments from different banks, has been a challenge.
Visa AR Manager aims to address this challenge by automating the virtual card transaction process. It retrieves card account details, initiates authorization and clearing procedures on behalf of the supplier, and provides valuable reconciliation data, enabling efficient invoice closure within the supplier's Enterprise Resource Planning (ERP) system, as stated in the press release.
Abhishek, Global Head of B2B Acceptance at Visa Commercial Solutions, highlighted the importance of the new innovation, saying, "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, a leader in digital payments, is actively driving the transition from cash and checks to digital payments, with the goal of enabling digital payments in over 200 countries. The company's approach to building networks provides opportunities to advance digital payments for individuals, businesses, and governments globally, facilitating various payment types such as peer-to-peer, business-to-consumer, business-to-business, and government-to-consumer transactions, according to the Visa website.
With the launch of Visa AR Manager, Visa aims to revolutionize virtual card acceptance for commercial merchants, providing a more efficient and streamlined payment experience. The solution is expected to not only benefit merchants but also contribute to the overall growth of the digital payments industry.