Solving the AR challenges of Medical Equipment and Supplies Distributors

Tip Sheet

Large volume purchases can bring with them payment preferences that you may be ill-equipped to handle — along with inescapable high interchange fees. Billtrust explains how AR automation can turn these challenges into advantages.

Gain advantage with A/R automation

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Accept card payments automatically

Suppliers selling to hospitals or large specialty medical groups are feeling pressured to accept payments from customers’ purchasing card programs. The immense buying power of these organizations can force suppliers into accepting card payments even if their processes are not optimized for that channel. A/R professionals are overwhelmed with card payments streaming in via phone and email.

Billtrust Payments offers the solution. With Billtrust, suppliers can accept emailed card payments without manual processing. Billtrust’s solution automatically parses, reconciles, and posts the funds and remittance data coming into your inbox to deliver an ERP-ready report. In addition, phone payments can be processed securely at a lower cost and immediately matched to multiple invoices and customer accounts for easy reconciliation.

Billtrust further frees up A/R professionals to pursue more strategic tasks by integrating directly to your customers’ A/P providers and automating touchless payments delivery while enforcing your payment preferences. Say goodbye to phone and email payments from third-party A/P providers!

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Reduce the cost of accepting electronic payments

Medical Equipment & Supplies Distributors typically deliver large invoices to their customers. As more and more buyers push to pay with cards, the high interchange fees associated with card payments cut deeply into suppliers’ margins. Billtrust helps reduce this burden on suppliers in two key ways.

The first is by settling card payments with lower fees. Many suppliers are settling their card payments with an unsophisticated process and are delivering the same level of data about each transaction to the card networks as a retail merchant would. Delivering only basic information with each payment is referred to as Level 1 processing. Card networks view transactions with only basic payment data as riskier and charge higher interchange rates to settle these payments. Higher levels of payment data are classified as Level 2 and qualify for lower rates, and complete line item data about a payment is classified as Level 3 and qualifies for the lowest rate. Billtrust Payments’ sophisticated solution can settle card payments at Level 2 and 3, protecting margins while keeping buyers happy.

The second method Billtrust employs to lower the cost of electronic payments is even more transformational. Business Payments Network (BPN) is a supplier-driven payments network developed by Billtrust in collaboration with Visa. BPN Flex Pay, a unique form of payment powered by Business Payments Network, delivers the rebates that buyers love from card payments while offering significantly lower fees to suppliers.

BPN Flex Pay offers suppliers many of the same advantages of card payments at a lower cost of acceptance. Rich remittance data is delivered and posted automatically along with the funds, further speeding the cash application process.

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Protect sensitive information

One of the great advantages Medical Equipment & Supplies Distributors can reap form A/R automation are powerful tools to implement PCI compliant payment processing. Integrated payments solutions minimize manual interaction with sensitive information and help maintain a secure environment.

How one leader in Medical Equipment & Supplies found payments success with Billtrust

In the first month with Billtrust’s automated virtual card acceptance solution (BPN Enterprise), Anda applied $1.3 million in payments via 360 individual transactions. The team was able to increase the number of virtual card transactions by 67%, automating 3,000 virtual card transactions in the first six months alone compared to a total of 3,600 virtual card payments processed the year prior.


annual savings

2.9% to 2.1%

card processing rate drop


customer experience

67% increase

in transactions in 6 months

“I was stunned at how quickly and efficiently Billtrust was able to roll out BPN for our team.”

Ryan Millan

Associate Director of Financial Operations, Anda

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