Understanding the Principles of Payment in business travel
Managing payments and expenses efficiently is crucial for any successful travel program. Last year in a BCD survey of travel buyers, 88% of respondents told us payment and expense was either extremely or very important in their overall travel program priorities. And, 4 out of 10 said they wanted access to more research and reports on payment and expense.
BCD’s Product Planning and Development team has provided a new resource to guide stakeholders through the world of travel payments. Written for travel managers, finance professionals, and expense teams, the Principles of Payment Library is a repository of video and written resources covering payment and expense topics that are key to travel teams, such as:
- Payment options
- Security & acceptance
- Virtual payments
- Enhanced payment data
“Our 2023 travel buyer survey on payment expense highlighted that payment and expense is a growing priority for programs,” said Tara Childress, Director of Product Marketing at BCD. “We understood that we needed to help our clients educate themselves. While the library isn’t meant to shape every stakeholder into a payment and expense expert, it will help you become familiar enough with the topic to engage in effective collaboration with other stakeholders within your organization, your suppliers and us, your TMC partner.”
What is payment and expense?
The words payment and expense are often interchanged but it’s important to think of these as separate functions.
- Payment is the process of paying for items or services. Think of payment as the corporate card used to book a flight.
- Expense is the process of accounting for those purchases. Think of expense as the cost of the flight itself.
“Whether you call it payment and expense or T&E spend management, the costs associated with travel spend account for about 10% of a typical company’s annual budget. That’s no small number for any organization, so finance teams and travel managers need to better understand and control the category,” Childress said.
What’s the ideal payment mix for a corporate travel program?
The first topic we’re tackling is Exploring Payment Options. The goal? Helping you and your stakeholders create the ideal payment mix for your corporate travel program. Available now in the library is an exclusive video and a series of one pagers that detail the strengths and weaknesses of specific payment options, including corporate cards, central billed accounts, invoices, virtual cards, cash and personal cards.
What’s coming next?
We’ll expand the library often to address the evolving needs of payment management. Upcoming content will include:
- Payment security and acceptance: Guidance on protecting payment information and ensuring travelers are prepared to pay for common expenses while on the road.
- Virtual payments: An in-depth look at virtual payment solutions, including how they can streamline reconciliation and enhance control over travel spend.
- Enhanced payment data: Tools and strategies for leveraging payment data to optimize program performance and ensure accountability.
To explore the resources and stay updated on future content, visit Principles of Payment.
Tara Childress, Director, Product Marketing
Tara Childress is Director of Product Marketing for payment, expense and BCD Pay, our innovative suite of services that delivers a digital T&E spend management experience throughout the entire spend management process. She joined BCD in August 2022 and is part of BCD’s Product Planning and Development marketing team. The new library is just one of many resources Tara supports to help clients on their path to digital spend management. She previously worked in the financial services industry for 15 years and is based in Alabama in the U.S.
