Suppliers Hate Virtual Cards: Here’s How to Change Their Mind

There’s a reality you don’t often hear: many suppliers don’t want to accept virtual cards. For finance teams chasing supplier adoption, that’s the real battleground. The old model of virtual cards leaves unsupportable costs and friction in their path. If you’re a buyer trying to make virtual card payments work, you’ll move faster by understanding vendor objections, and reframing the value.

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The Hidden Costs That Make Suppliers Say No

Imagine you’re a supplier. A large customer sends you a “virtual card” payment, but you still have to manually key in the 16-digit number, reconcile multiple invoices, deal with a terminal that may only accept one invoice, or log into a portal site for each payment. Meanwhile you’re absorbing a ~3% interchange fee. That’s why a recent TSYS and payments-industry insight piece noted that virtual cards still haven’t delivered on their promise because “the high cost for vendors looking to accept invoices” remains a major barrier.

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In fact, one 2025 survey by SAP Taulia revealed 78% of procurement leaders say it takes more than a month to onboard a new supplier, and 40% say it takes over three months. If acceptance is slow, adoption will be slower. Suppliers know they’ll be investing time for a cost they didn’t budget.

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So when a supplier pushes back and says “we won’t take cards”, chances are they’re making a rational business decision.

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Why the Buyer-Supplier Ratio Matters

When buyers push “virtual card only” to suppliers, they often forget the vendor’s perspective. A supplier facing many buyers doesn’t want to switch payment methods for every customer. They want something predictable: low cost, minimal effort, and quick settlement.

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Here’s what research shows:

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Suppliers who accept commercial card payments say they are 14 percentage points more likely to be efficient at maximizing working capital.
41% of companies cite supplier resistance as a key deterrent to virtual card adoption.
Meanwhile, virtual cards still account for only a small share of total AP transactions despite interest from buyers.

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The math is simple: unless the method makes sense for suppliers, buyers will bump into a wall.

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What Suppliers Want and How You Can Deliver It

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1. Lower cost, not just the illusion of “digital”

When a supplier accepts a virtual card payment, they often bear higher interchange fees or may absorb a surcharge. The buyer may think the “virtual” version is streamlined, but supplier economics don’t always agree.

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What if you offered them something cheaper or at least no worse than their current preferred method? With the right model, you can negotiate fee sharing or a lower effective cost. That’s exactly what the straight-through processing model from Centime enables: buyer pays via card, supplier gets ACH deposit, and the effective interchange drops to around 1.9% instead of ~3%.

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2. No terminal key-in, portal login or one-invoice limitation

For many vendors, the challenge isn’t just cost: it’s process. Asking a supplier to manually enter each payment into their system or a portal defeats the digital promise. Terminals that only allow one payment per invoice make any attempt at batching or efficiency impossible.

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A payment flow that looks like this is far more persuasive: “Your invoice gets paid by card, but you don’t touch a card number. You get funds via ACH automatically. Zero manual card input.” That removes a lot of the friction.

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3. Predictable settlement and reconciliation

Suppliers want to reconcile easily and avoid surprises. Many report that accepting card payments improves payment visibility and processing speed (in one study, 30% saw faster processing and 24% reduced costs).

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If you can offer a payment method that maintains their visibility, lowers manual reconciliation, and doesn’t force them to change systems radically, their “yes” becomes easier.

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How Buyers Can Lead the Change

Here are actionable steps to drive supplier adoption:

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Segment your supplier base by cost impact
Start with suppliers for whom you absorb the fee or negotiate a shared model. Show a case where you pay the interchange and the supplier gets paid as if they were using ACH.
Communicate value to suppliers plainly
Use language like: “This method pays you directly to your bank account, no terminal, no card number, same or lower cost than today.” Avoid speaking in buyer-centric jargon.
Pilot with willing suppliers
Choose a subset of suppliers who see value (e.g., smaller vendors eager for faster payment). Once you get a few early adopters, use their case study internally to build momentum.
Track and share metrics that matter to suppliers
Your metrics should include: time to payment, cost savings, reconciliation time saved, reduction in manual entry. Suppliers often respond to the operational gains more than the “card” story.
Be flexible on fee models
Don’t force suppliers into paying full interchange. Consider offering to relaunch fees, share them, or switch to a model where you absorb them entirely—especially for strategic vendors. That’s how you create a win-win.

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The Narrative: It’s Not About the Card, It’s About the Flow

One of Centime’s key insights was that virtual cards have always been described as a product, not a process change. Suppliers don’t care about card numbers. They care about how quickly and easily they can get paid. And until payment flows reflect that, you’ll keep bumping into supplier resistance.

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By flipping the narrative, from “use our virtual card” to “accept a payment that arrives automatically, with no extra work on your end”, you unlock supplier mindset change.

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Think of it this way: the term “virtual card” should fade from your supplier conversations. What they should hear is: “We’ll pay you smoothly, at your bank, with minimal effort, and lower cost than many card payments.” That is a story they’ll buy into.

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The Bottom Line

If you want supplier adoption, focus first on what suppliers value: cost, effort, predictability. The card is simply a funding mechanism. The real story is how payment flows change, and how you design your program accordingly.

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When you engineer for the vendor experience rather than force them into a buyer-centric card model, adoption becomes realistic. Being able to offer ACH-level settlement, low fee, minimal friction. That’s what breaks the “suppliers say no” cycle.

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You’ve read the objections. Now you know how to answer them.

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If you're ready to offer suppliers a payment method they actually want to use, book a demo and see how Centime makes it possible.

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**Deposit placement through ICS is subject to the terms, conditions, and disclosures in the applicable agreements. Although deposits are placed in increments that do not exceed the FDIC standard maximum deposit insurance amount (“SMDIA”) at any one destination bank, a depositor’s balances at the institution that places deposits may exceed the SMDIA (e.g., before settlement for deposits or after settlement for withdrawals) or be uninsured (if the placing institution is not an insured bank). The depositor must make any necessary arrangements to protect such balances consistent with applicable law and must determine whether placement through ICS satisfies any restrictions on its deposits. A list identifying IntraFi network banks appears at https://www.intrafi.com/network-banks. The depositor may exclude banks from eligibility to receive its funds. IntraFi and ICS are registered service marks, and IntraFi Cash Service is a service mark, of IntraFi Network LLC.

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*Centime is not a bank and is not authorized by any federal or state agency to engage directly in core banking activities.
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*All banking products and services available through Centime are provided by FNBO and are governed by the applicable agreements and related disclosures provided to you by FNBO. Member FDIC.
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‍*While Centime facilitates traditional banking activities (such as the acceptance of deposits or extensions of credit), these services are actually provided by our banking partner, FNBO.
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*Centime may provide support services to FNBO, as permitted by applicable law, to facilitate the delivery of its bank products and services.

**Deposit placement through ICS is subject to the terms, conditions, and disclosures in the applicable agreements. Although deposits are placed in increments that do not exceed the FDIC standard maximum deposit insurance amount (“SMDIA”) at any one destination bank, a depositor’s balances at the institution that places deposits may exceed the SMDIA (e.g., before settlement for deposits or after settlement for withdrawals) or be uninsured (if the placing institution is not an insured bank). The depositor must make any necessary arrangements to protect such balances consistent with applicable law and must determine whether placement through ICS satisfies any restrictions on its deposits. A list identifying IntraFi network bank

Suppliers Hate Virtual Cards: Here’s How to Change Their Mind

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