5 business payment myths to leave behind in 2024

Mobile wallets, instant payments, and AI integration are just a few of the trends impacting the way businesses transact in 2024.

With more payment options than ever before, finding the right fit for your needs has never been easier. Yet, outdated misconceptions continue to hold businesses back from taking their financial processes to the next level.

As we move into 2024, it’s time to challenge these myths and consider the innovative solutions driving the future of business payments.

Myth 1: Paper checks are cheaper than digital payments

For years, businesses have stuck with paper checks, thinking they’re the most affordable way to pay. But the reality is quite different when you look at the full picture.

Take the construction industry, for example. According to PYMNTS research, more than 75% of subcontractors still get paid with paper checks, which has contributed to massive payment delays – costing businesses $273 billion last year alone. On top of that, every paper check can cost anywhere from $4 to $20 when you add up printing, mailing, and bank fees. Compare that to digital payments, which often cost just a few cents per transaction, and the difference is clear.

Paper checks don’t just cost more – they’re slower and come with extra risks like fraud and errors. Digital options, like virtual cards, make payments faster, safer, and easier to track.

As we head into 2025, switching to digital payments isn’t just about saving money. It’s about making your processes more efficient, protecting your business, and keeping up with the way the world is moving.

Myth 2: Corporate credit cards are only for travel and entertainment

Corporate credit cards have traditionally been associated with covering employee travel and entertainment expenses. However, their use reaches far beyond that. 

Today’s corporate credit cards, particularly single-use virtual cards, offer a versatile solution for accounts payable, recurring vendor payments, and even procurement processes.

Virtual cards provide unique advantages, such as enhanced security features (single and limited-use numbers) and expense tracking. This makes them an essential tool for reducing fraud, maintaining control over spending, and improving audit trails – capabilities that traditional payment methods can’t match.

Myth 3: Digital payments are riskier than traditional methods

Many businesses are hesitant to adopt digital payments due to security concerns. While cybercrime is a valid threat, modern digital payment platforms are designed with security measures to mitigate risks.

Payment providers use encryption, tokenization, and two-factor authentication to protect sensitive information. Virtual cards are particularly secure, as they limit exposure by generating unique card numbers for specific transactions.

Sticking with outdated methods like checks or traditional credit cards can leave you vulnerable to fraud or misuse. Implementing secure digital payment solutions minimizes vulnerabilities and offers peace of mind.

Myth 4: Corporate payment platforms are only for large enterprises

Many people assume that payment platforms are only meant for big businesses, but that’s not the case. Payment solutions partners like WEX are built to scale, making them a great fit for businesses of any size. WEX solutions, like virtual cards and automated AP tools are tailored to your business needs. 

WEX helps simplify the payment process, cutting down on manual work and offering financial incentives and stronger security. Whether you’re running a small business or a growing mid-sized company, these tools can make managing payments easier and more efficient.

The best part? These solutions are flexible enough to grow with your business, so you can focus on what matters most – keeping things running smoothly.

Myth 5: Payments are just a cost center

Many businesses still view payments as necessary expenses without considering their potential to generate revenue or create value. Solutions like virtual cards and automated AP platforms not only reduce costs but also offer opportunities to earn rebates or discounts.

When you use a virtual card to make a payment, the issuing bank typically rebates a portion of the interchange fee back to your business. Interchange fees are the fees that merchants pay to banks whenever a customer makes a purchase using a credit or debit card.

For example, receiving 1 percent cash back on virtual card invoice payments means you will get $10,000 back for every $1 million spent.

Additionally, optimizing your payment processes improves cash flow, strengthens supplier relationships, and frees up resources for more strategic initiatives.

By shifting the perception of payment systems from a cost center to a value driver, businesses can find opportunities to improve their bottom line.

Leaving behind these corporate payment myths isn’t just about keeping up with the times; it’s about positioning your business for success.

By adopting modern business payment solutions, businesses can:

• Save time and reduce costs through automation.
• Improve security with digital payment solutions.
• Strengthen supplier relationships by offering faster, more reliable payment methods.
• Generate revenue with rebate programs and optimized cash flow management.

2025 is the year to challenge outdated beliefs and adopt smarter, more efficient business payment solutions. Whether you’re a small business or a large enterprise, leaving these myths behind will help you stay competitive, secure, and ready for the future.

For more insights and updates on corporate payments, check out:

• Your guide to virtual card rebates
• Virtual cards: 5 simple steps to make the transition
• Is the secret to better cash flow management AI?

Learn more about how WEX payment solutions can be tailored to your business, so you can accelerate and streamline operations while creating lasting growth and success for your organization.

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The information in this blog post is for educational purposes only. It is not legal, tax or investment advice. For legal, tax or investment advice, you should consult your own legal counsel, tax, and investment advisers.