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This is why you generally do not pay via credit card at the whim of a vendor. You pay via bank transfer after receiving a bill. A proper, written, paper, tax-l
by corty 5y ago
This is why you generally do not pay via credit card at the whim of a vendor.
You pay via bank transfer after receiving a bill. A proper, written, paper, tax-legal bill. One that gets a few stamps and signatures by your accounting department, by the department that ordered said software and maybe internal IT. Only then is the transfer issued.
If a vendor cannot be bothered to send a bill properly, well, it isn't worth the hassle. Only hilarity will ensue, as can be seen from the OP.
- wmf 5y agoThen the vendor deletes all your data for having unpaid invoices and you suffer. This isn't what I would call hilarity.
- binbag 5y agoYou shouldn't give them your business then.
- ajcp 5y agoI agree. If you're at the scale where you require an Enterprise solution, you should also have some level of finance department that knows how to handle purchase orders, invoices, and ledgers of account. This enables transparent vendor account to customer account reconciliation. Credit cards leave everyone in the dark.
- molsongolden 5y agoCredit cards can also be a ~1% cash back across the board for the business and tools like Brex, Divvy, Airbase, etc... can provide even more spending visibility + budget tracking. These tools can also offer virtual cards, auto coding of expenses, and spending caps by card. ACH is better (lower cost) for the vendor but a proper card-based spend mgmt setup might be better for most buyers.
- ajcp 5y agoOh yes, there is no doubt there is monetary incentive to utilize credit cards for the business, and perhaps tools that can help integrate them. My take is that at an Enterprise level your calculation should be more toward business continuity and chain of custody, rather than squeezing value out of financial instruments that are not your core money-maker.
- acchow 5y agoWhy would the bill that's satisfied by a bank transfer be any different from a bill satisfied by a credit card transaction?
- corty 5y agoBecause you have seen the bill before it gets paid. The bill is a precondition for the push-type transaction of sending money. Whereas with a credit card, the vendor can just pull money from the account without ever having sent a proper bill. Just like it happened to the OP. When getting money requires the vendor to get their affairs in order and send proper bills, things will get fixed quickly. When the vendor can get money anyways, things will never be fixed because there is no consequence to cashflow.