Which Payment Options Are Best to Manage Company Travel?
Travel payment trends continue to change. However, it can be a challenge to choose the right one for your business. The increased use of e-wallets, for example, indicate that credit card use is on a decline. By 2021, the use of credit cards will decrease by 15%, while e-wallets will increase to 28%.* What about bank transfers and debit cards? The former will remain largely the same, while the latter will see a decline of 8%. All of these trends can have an impact on corporate travel booking. The goal, however, is to choose a payment option that suits the organization best. You’ll want to explore the answers to:
- Should we provide credit cards for frequent travelers?
- Is it more cost-efficient to just have a company credit card account that will be used primarily for all corporate travels?
- How about setting up a virtual payment solution between our company, our travel management company (TMC), and our bank?
What Payment Options Are Available?
Individual Business Credit Card
Individual cards can be beneficial to travelers for many reasons. They encourage personal responsibility and give some autonomy to the traveler. This method of payment can also streamline the expense process or the purchase of incidentals. However, reconciling charges at the end of the month has proven very challenging for most organizations. It is incredibly time consuming and not always entirely accurate. The chances for fraud are much higher and it is more likely that an employee could mistakenly use the card for personal travel and not even be aware. Your TMC can help weigh these benefits against the complications and also provide additional options or product recommendations that may accomplish the same ideals without the headaches.
Central cards can ensure consistency on corporate travel expenses while protecting company data. Travel transactions can be completed faster when there is a centralized payment option attached. Payment errors are diminished when the form is not accessible to the individual traveler as well. Reconciliation of a central card, however, can be difficult if the right data is not captured. A TMC may be able to alleviate some of the labor through better data capture on the back end. The data fields available from the travel side are much more detailed that on the payment side. Through integration, a TMC like Adelman can streamline this process.
The improvements to compliance are a large benefit to considering a central payment option. By removing a traveler’s choice of payment, you reduce the chance of out of policy bookings and leakage. This may not fit well with your corporate culture, however.
Before you decide to implement this payment method, consider the following factors:
- Ease and convenience of use
- Contribution to an improved travel program
- Impact on costs and compliance
- Rebate options
With more travel payments becoming digitized, virtual payments are the new normal. It requires an end-to-end solution to be established between your TMC partner, bank, and the point of sale.
What makes it unique? For each reservation, a virtual or one-time-use card number is generated by the existing banking account linked to the virtual payment.
Adelman has partnered with US Bank to provide an elevated virtual card product. Not only do we provide the ability to book travel with single-use virtual cards but through our integration capabilities we can also deliver seamless card reconciliation and even more detailed transaction data.
How to Find the Right Payment Solution for Company Travel
Ask the following questions:
- How secure is the payment system?
- Are there payment processing fees involved? How much?
- Is there a limit to transaction frequency and amounts?
- How easy is it to set up and maintain?
- Does it come with customer support?
With payments becoming more seamless, cash-less, and plastic-less, it won’t be long before payment options change completely. Future corporate travel payments will now take place digitally when booking, payment, and billing are integrated into one payment solution.
For a stress-free corporate travel solution, find a travel management company to provide you with an integrated payment solution.
Adelman gives you an advantage through our mobile platform to book business trips easily and on the go. Enjoy real-time updates and assistance from booking until you reach your destination and back. Contact us today to learn more!
*According to a 2017 study by leading payment processing company, Worldpay