The use of procurement cards (P-cards) is an increasingly pervasive trend in accounts payable management. With the use of P-cards, a variety of organizations can reap numerous benefits, but they also must be careful to keep the challenges, including auditor believes that the use of P-card systems has saved West Virginia approximately $145 million per year. The cost reductions stem from sources such as the lower price to process transactions and the rebates that accompany some purchases.
The NAPCP, the professional association for the commercial card and payment industry, stated that when companies switch their payment methods from more traditional processes to P-cards, they may experience efficiency savings of between 55 percent and 80 percent. Additionally, implementing a P-card system can help managers accurately track expenses while helping businesses procure goods more quickly.