Virtual Card Agent
What is the opportunity?
The Virtual Card Agent automates one of the most complex and time-consuming aspects of vendor management: determining card payment acceptance and executing card payments at scale.
The Problem
Most payment platforms leave significant revenue on the table when paying vendors through check or ACH. From our data, 15% of all invoices currently paid via ACH could be processed using virtual cards, representing a substantial opportunity for revenue growth and operational efficiency.
Traditional vendor onboarding is a manual, error-prone process that requires:
- Researching vendor payment preferences
- Contacting vendors to confirm card acceptance
- Negotiating payment terms and fees
- Manually processing payments
- Tracking payment confirmations and receipts
This process is not only time-consuming but also expensive, with human resources dedicated to vendor communication and payment processing.
The Solution
Mercoa’s Virtual Card Agent automates the entire vendor enablement process using advanced AI to:
- Analyze invoices and vendor information automatically
- Determine card acceptance and fee structures
- Process payments using your existing virtual cards
- Capture payment confirmations and receipts
- Maintain vendor payment preferences in a curated database
How this makes you revenue
Virtual Card Interchange Revenue
The primary revenue driver is virtual card interchange fees. When vendors accept card payments, you earn interchange revenue on every transaction:
- Interchange Rates: Typically 1.5% - 3.5% of transaction value
- Volume Scaling: Revenue grows directly with payment volume
- Recurring Revenue: Ongoing revenue from existing vendor relationships
- Network Effects: More vendors accepting cards increases overall volume
Automated Vendor Onboarding
Traditional vendor onboarding requires significant human resources:
- Manual Research: Potentially hours per vendor to determine payment preferences
- Vendor Communication: Phone calls, emails, and follow-ups
- Documentation: Recording payment methods and terms
- Ongoing Maintenance: Keeping vendor information current
The Virtual Card Agent eliminates these costs by:
- Automated Communication: AI handles vendor outreach and follow-up
- Database Curation: Maintains accurate vendor payment preferences
- Scalable Operations: Handle thousands of vendors without additional staff
Cost Reduction Benefits
Reduced Human Resources
- Eliminate manual vendor research and communication
- Reduce accounts payable staff requirements
- Minimize payment processing errors and rework
- Streamline reconciliation processes
Operational Efficiency
- Faster payment processing (minutes vs. days)
- Reduced payment failures and returns
- Automated receipt capture and storage
- Real-time payment status updates
Risk Mitigation
- Reduced fraud through virtual card controls
- Better audit trails and compliance
- Improved vendor relationship management
- Enhanced payment security
FAQ
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.