Virtual Card Agent

Overview

The Virtual Card Agent automates one of the most complex and resource-intensive aspects of vendor management: determining card acceptance and executing virtual card payments at scale.

The Problem

Most payment platforms leave substantial revenue unrealized by defaulting to ACH or check payments. Based on our data, 15% of invoices currently paid via ACH could instead be paid by virtual card, unlocking significant revenue and operational efficiency.

Traditional vendor onboarding is a manual, error-prone process involving:

  • Researching vendor payment preferences
  • Contacting vendors to confirm card acceptance
  • Negotiating fees and payment terms
  • Manually submitting payments
  • Tracking confirmations and receipts

This approach is not only time-consuming but also costly, consuming human resources and increasing the risk of errors.

The Solution

Mercoa’s Virtual Card Agent uses advanced AI to fully automate vendor enablement:

  • Automatically analyzes invoices and vendor data
  • Detects card acceptance and associated fees
  • Processes payments using your virtual card program
  • Captures and returns payment confirmations and receipts
  • Maintains a real-time vendor payment preferences database

How Virtual Card Agent generates revenue

Virtual Card Interchange Revenue

The core monetization model is interchange revenue from virtual card payments. When vendors accept card payments, your platform earns a percentage of each transaction.

  • Typical Interchange Rates: 1.5% – 3.5% of transaction value

  • Revenue Scales with Volume: The more vendors accept cards, the more revenue you generate

  • Recurring Revenue: Interchange accumulates across ongoing vendor relationships

  • Network Effects: As more vendors accept cards, adoption and volume grow organically

Automated Vendor Onboarding

Traditional onboarding is labor-intensive and error-prone, requiring:

  • Manual research to identify payment preferences

  • Vendor communication via phone and email

  • Documentation and recordkeeping

  • Ongoing updates and maintenance

With the Virtual Card Agent, you eliminate these overheads:

  • Automated Communication: AI contacts vendors and handles responses
  • Database Curation: Keeps payment preferences accurate and current
  • Scalable Operations: Support thousands of vendors with zero added headcount

Cost Reduction Benefits

Reduced Human Effort

  • Remove the need for manual vendor research and outreach

  • Reduce AP team size or reallocate staff

  • Minimize errors and rework

  • Streamline reconciliation with automated receipt capture

Improved Efficiency

  • Instant payment execution (minutes vs. days)

  • Fewer failed or returned payments

  • Real-time updates on payment status

  • Centralized audit trails and secure document storage

Enhanced Risk Management

  • Fraud reduction via secure virtual card controls

  • PCI-compliant workflows

  • Improved vendor communication and compliance tracking

FAQs

Do my customers need to leave my platform to make payments by virtual card?

No. Your customers just need to use your BillPay product like usual. Our AI agent handles the details around determining if the vendor accepts virtual cards, if there are any associated fees and processing a card payment to the vendor.

What file formats are supported?

We support PDF and HTML invoices. Scanned invoices are supported, but tend to have lower success rates.

How secure is the payment process?

All payments are processed using your secure virtual cards. We use bank-level encryption and follow PCI DSS compliance standards to ensure your data and payments are protected every step of the way.

Can I integrate this into my existing product?

Yes! Our AI agent is available via API, making it easy to integrate with your existing BillPay product. Check out our API documentation for integration details.

What types of invoices can be processed?

Our AI can handle most business invoices including utilities, services, subscriptions, and vendor payments. The agent automatically identifies when a vendor accepts a virtual card and processes accordingly.

How quickly will I know if I can use a card to pay an invoice?

Analysis results are typically delivered within minutes. You receive a detailed breakdown of the invoice, the vendor, available payment options, and associated fee information via our API.

How do you detect if a vendor accepts cards?

If a vendor invoice does not have an associated payment link, Mercoa will reach out to the vendor to ask if they accept cards and how best to deliver it to them. Our agent then uses this information to deliver a virtual card to the vendor when necessary.

What if the vendor charges a fee for processing cards or does not accept cards?

If a vendor charges fees for processing cards or doesn’t accept cards, Mercoa falls back to asking the vendor for their bank information so you can still pay them using ACH.

Can my customers still control payment timing or do they need to run the card the day they process an invoice?

Yes. From your customer’s perspective, nothing about their current BillPay experience changes. Customers still have control over when an invoice is scheduled to be paid.

How do you ensure the vendor information is correct?

We maintain and curate the vendor database to ensure we always have their latest preferred payment method on file. Mercoa maintains communications with vendors to ensure payment details stay up to date.