Won’t it be helpful for your organization to attract more and more customers and retain them by providing them with such card services that are hassle-free and easy to maintain? Making it simple for other merchants to combine their businesses with yours. An organization’s employees make some business-related purchases. Do they pay from their pocket or does the organization cover it?
The organization provides the employees with a purchase card, credit card, or debit card for making such expenses. There have been cases where employees have often made such business-related purchases with their means, and later the entire reimbursement process has been a headache. A solution for the same has been required, which would issue certain cards for the employees, and reimbursing won’t be an issue. But how do organizations do that?
All such organizations use a software system named the Card Management System (CMS). This CMS is a software system to administer and facilitate the tracking and control of the life cycle of a card. These financial systems create and monitor physical and virtual debit or credit cards. It includes the issue of the card and managing the information associated with the card. CMS could be connected to other accounting software to keep track of the transactions and work-related expenses. Organizations use CMS to issue virtual or physical cards to eliminate the need to file reimbursement reports for any financial transactions.
The most used CMS is the Credit Card Management System (CCMS). This is used for managing and issuing credit or debit cards. Credit card management systems are specifically designed for their designated purpose and are highly specialized. They’re quick and safe, allowing employees to pay for things right from their desktop or mobile devices. They’re also easier for finance teams to manage, helping them to reduce financial risk and avoid reimbursements and expense claims.
The entire CMS goes through a lifecycle, which is a six-step process. Each card that enters the system goes through the same process, beginning with the request and ending with the card’s issuance/re-issuance.
• Requesting
• Approval
• Issuance and monitoring
• Expiration
• Blocking cards (stolen or misplaced)
• Re-issuance (in the event of a card’s expiration or blocking)
When a card enters the system, it is obligated to follow this lifecycle and exist in one of the listed ways. The sole purpose that CMS has served has been of great aid to organizations in managing their internal or external financial transactions. It has also ensured that its implementation has made accounting easy for the organization and is now a vital part of the accounting process. It has become a necessity of the hour, and it is recommended that all organizations implement it for a better experience.
Read: Fyle Introduced Real-Time Spend Management on Visa Credit Cards
