X9 Invites Participants for Standardization of Single-Use Virtual Purchase Cards

The Accredited Standards Committee X9 Inc. (X9) has launched an initiative today aimed at standardizing the creation and efficient acceptance of virtual single-use purchase card accounts (SUA). This initiative seeks to streamline processes and reduce overhead costs for suppliers. SUAs are increasingly used by businesses as an alternative to checks or electronic funds transfers for paying supplier invoices. Unlike traditional cards, SUAs are valid for a single purchase and do not involve the creation of a physical card number, ensuring enhanced security by avoiding the disclosure of financial account details during transactions.

In 2024, SUAs are projected to facilitate nearly $600 billion in annual invoice payments. However, the current acceptance process is labor-intensive, with issuers employing various email payment formats and access requirements for card credentials. Challenges also arise from SUA expiration dates, which range from 72 hours to 30 days, impacting payment processing across weekends and business cycles.

The aim of the new standard is to establish SUAs as payment instruments with standardized appearance akin to checks. Payments should adhere to remittance reporting guidelines outlined in the ISO 20022 standard, ensuring transparency and consistency in invoice payment adjustments.

Standardization promises benefits for both buyers and suppliers, enhancing cash application automation and reducing payment exceptions. X9’s initiative will focus on defining transaction notice delivery methods, proposing standardized syntax and formats for information, setting minimum authentication and security standards, and establishing appropriate expiration policies. The initiative will also explore API solutions to automate the overall SUA payment process.

The anticipated outcome includes significant cost savings through increased automation. X9 invites participation from experts familiar with SUA processes, virtual purchase card creation, ERP accounts payable systems, Payment Instruction Files, and buyer application forms for SUA issuance. Interested individuals can express interest through X9’s website.

Steve Stevens, X9 Executive Director, highlighted the initiative’s potential: “Standardizing SUAs will enhance transaction efficiency for both suppliers and issuers, delivering added value to consumers and businesses alike. We invite those passionate about virtual payment cards to join our efforts.”

Source Link

Newsletter Updates

Enter your email address below and subscribe to our newsletter