Payment Method Optimization Service
This service has been temporarily disabled.
The Payment Method Optimization Service is a free Payment Automation add-on service that identifies and continuously analyzes which of your vendors accept virtual cards as a form of payment.
The service is automatically activated after your HSBC Online Account is approved. NetSuite creates your company profile with our optimization team, and you will receive a notification email that the service has been activated. If you are an existing customer, you will receive the notification email after your account is updated to the latest version, and NetSuite receives your latest contract. For more information about the activation of this service, see Customers That Signed the Contract Before May 12, 2023 and Customers That Have Signed the Contract After May 12, 2023.
You can go to the Payment Automation dashboard, and in the left pane in the Set Up section, click Payment Optimization. You will see the word Active at the top of the page. You can disable the service any time.
When the Payment Method Optimization Service is active, NetSuite sends your vendor data to our optimization team, who analyzes this information.
Our optimization team will do a payment method analysis to identify virtual card-accepting vendors. Our team will then contact your vendors by email or phone call to confirm that they accept virtual cards and request to use virtual cards as their primary payment method.
An email notification is sent to the user who initiated the HSBC Application form. You will receive a summary email message with a list of vendors that were analyzed and optimized if there were records that were updated.
If the vendor agrees to use virtual cards as their primary payment method, we update the following fields on their vendor record:
-
Accepted Modes of Payment – We added VCard as an accepted mode of payment.
-
Preferred Mode of Payment – We will set VCard as the preferred mode of payment.
-
Remittance Email – We update the remittance email as provided by the vendor during confirmation. If the vendor hasn't confirmed an email in this process, we use the vendor email that already exists in our records.
The vendor might not agree to use virtual cards or cannot meet the terms for using virtual cards, for example because of amount thresholds they impose. The vendor record of these vendors will not be updated, and you can keep paying them by ACH or checks.
When this process is complete, you can pay these optimized vendors with virtual cards automatically because virtual card will set as their Preferred Mode of Payment. The vendor is enrolled in the service, and they will receive a welcome letter that outlines the delivery method of the remittance.
Vendors will receive a remittance email for each virtual card payment with instructions for how to process the payment. For every virtual card payment, a unique 16-digit card account number is generated. The account number is assigned a specific dollar amount, expiration date, CVC code, and GL clearing account number or reference number from our payment file. For more information, see Reviewing Remittance Email.
After your vendor processes the virtual card, it will receive settlement within 24-48 hours. Due to the security features applied to virtual cards, vendors can only process payments for the total amount of the approved remittance. For example, if you create a virtual card for 100 USD, the vendor cannot process the payment for an amount that is greater than 100 USD.
Our optimization team will continuously analyze your vendor data and add vendors to the list of those accepting cards, if possible, allowing you to maximize your use of cards.
What are the benefits of this process for the customers?
Customers using virtual cards through this process benefit from the following:
-
Improved cash flow
-
Increased rebate
What are the benefits of this process for my vendors?
Vendors accepting virtual cards through this process benefit from the following:
-
Payment settlement typically within 24-48 hours of the vendor initiating the payment
-
Improved financial controls
-
Prompt settlement to help minimize payment delays, collection costs, and disputes
-
Detailed remittance information, including a list of paid invoices
For more information, see the frequently asked questions in the Virtual Card Payments section, the Virtual Card section, and the Vendors and Payment Optimization section.
Customers That Signed the Contract Before May 12, 2023
The Payment Method Optimization Service feature is automatically enabled if you have signed the updated contract authorizing our Payment Optimization Team to call your vendors.
You will receive an email notification that this service is now active with a link to a page with more information and instructions where to turn this service off.
Our optimization team will immediately start analyzing vendor data and start the process.
Customers That Have Signed the Contract After May 12, 2023
The Payment Method Optimization Service feature is automatically enabled after your HSBC Online Account and credit line are approved.
You will receive an email notification that this service is now active with a link to a page with more information and instructions where to turn this service off.
After the first vendor is onboarded, our optimization team will start analyzing vendor data and start the process.
To disable the Payment Method Optimization Service:
You can opt back in at any time.
-
Go to SuiteBanking > Payment Automation > Dashboard.
-
On the left pane in the Set Up section, click Payment Optimization.
-
Click Opt Out of This Service.