Regional Distributor of Flooring Products

Visa Commercial card program—exceeding expectations of mid-size companies

Visa contracted Deloitte & Touche to conduct a review of companies with revenues between $25 million and $500 million who had recently implemented the Visa Commercial card program. Let's take a closer look at how Visa partners with mid-size companies to help ensure their success.

Client profile and card use approach

This established regional distributor of floor covering materials has a customer base of approximately 250 large clients. Sales personnel, who are on the road 3-4 days a week, are the primary users of the Visa Commercial card. Prior to implementation of the card program, this company had been highly dependent upon of cash advances to fund sales travel.

Client program goals

This regional distributor selected the Visa Commercial card program:

• To reduce transaction costs
• To increase spending controls
• To reduce cash advances
• To ease traveler money concerns while on the road
• To analyze and aggregate spend

Value received

This client is very satisfied with the Visa Commercial card program and the value experienced from implementation of this comprehensive payment program:

• Transaction costs have been reduced through:
  • Reduction in the number of checks to vendors
  • ACH payment of a single bill to the card Issuer
  • Use of a department commercial card for supply orders that previously required purchase orders and company checks for payment
• Spending controls have been increased through:
  • Ability to restrict individual account credit limits and single transaction limits
  • Spend tracking through individual account statements
• The need for cash advances has been significantly reduced, which in turn has reduced internal check writing requirements and time spent on administration and reconciliation of the cash advance program
• Travelers reported:
  • Decreased concerns for money while on the road
  • Satisfaction with the ease of use and acceptance of the Visa Commercial card
  • Increased time spent on the road, due to decreased requirement for cash advances and reduced time spent on expense reimbursement forms
• Using the department commercial card, this company has begun to analyze spend categories in order to further reduce costs through aggregation of spend across business locations

Company Statistics

Revenue: $32 Million
Average Spend on Cards per month: $17,900
Monthly Credit Limit: $67,000
Card Restrictions Used: Individual Credit Limits, No Cash Access on Card
Employees: 100
Number of Commercial Card Accounts: 36
Billing Options: Central Bill, Individual Statements
Payment Options: Central Pay via Automated Clearing House (ACH)