Are TMCs taking full advantage of modern card payment options?

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Phone:+45 4363 2266

In the last few years, the range of different payment options available to Travel Management Companies (TMCs) has increased considerably - but many businesses in this sector may not be taking full advantage of these advances.

This is according to a new report from Business Travel iQ and Barclaycard, which questioned 120 European travel buyers online in November and December 2016, and found that some TMCs are not yet leveraging the benefits that newer payment solutions can deliver.

It was noted that one in three survey respondents say their travellers still use old-fashioned cash as their primary means of payment, despite the fact that this usually requires their employer to provide cash advances, or for the traveller to use their own money and be compensated later - both cases that involve manual form-filling that is time-consuming and open to errors, omissions or fraud.

The report also showed that 28 per cent of businesses still use billback, compared to only 25 per cent that have adopted the use of virtual cards - single-use cards with a unique 16-digit number and value tied to a single booking - despite the benefits offered by the latter option. Indeed, 36 per cent of respondents said they were entirely unaware of virtual cards as a concept.

When asked further about their views on virtual cards, a common perception was that the product had not yet matured, while others demonstrated conflicting ideas on what the concept offers. This was exemplified by the fact that 28 per cent said they were wary of virtual cards due to policy compliance and fraud concerns, while 50 per cent cited control and compliance as the main reason for using them.

The report concluded: "The discovery that so many corporates use cards to achieve control and compliance, while almost as many resist them because of concerns about compliance and fraud, demonstrates the value of knowing how the cards work and that they can actually remove that risk."

For information on how your TMC can automate its mid and back-office systems with ProTAS, contact ProCon Solution now.

ProCon Solution A/S
Herstedøstervej 27-29
DK-2620 Albertslund
Phone: +45 4363 2266