What are the costs associated with replacing checks with p-cards for MRO purchases?


Generally the advantage of p-cards is in elimination of a large volume of low value invoices, resulting in significant process savings.

See the Purchasing Card Benchmark Survey Summary on the APP2P Network. The full report is available from RPMG.

The National Association of P-Card Professionals says this:

"The transactional cost of making small dollar payments, those less than $1,000, using the traditional process is the same regardless of the dollar amount of the payment, i.e., it costs the same to process a $25 payment as it does a $100,000 payment. Often the cost of making a payment exceeds the value of the item being acquired, i.e., the cost to acquire a $25 wrench may exceed $100. The Purchasing Card simplifies the process and reduces the cost. Estimates of the transactional cost of the purchase order and payment process range from $50 to $250. Purchasing Card efficiencies result in savings ranging from 55% to 90% of this transactional cost."

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