Let’s start with how outsourced payments companies deliver rebates in the first place.
Many payments companies can pay your suppliers with an emailed virtual card, also known as single-use card, to pay a specific invoice.
Virtual cards work similarly to regular credit cards and are backed by the same institutions, such as Mastercard and Visa.
However, virtual cards are significantly more secure, and offer better protection against fraud and misuse.
Suppliers underwrite the rebate –often split between the payments company and the buyer –as part of the interchange rate.
The trade-off: Suppliers can get faster payment, while enjoying secured funds, and more detailed remittance data.