Can you pay vendor bills with a credit card?

If you’re wondering whether or not you can pay vendor bills with a credit card, the answer is often yes. In fact, there are even ways to do so if a vendor doesn’t accept credit card payments. Continue reading to learn about your options and the benefits of paying with a credit card.

What you’ll learn:

• Even if a vendor doesn’t accept credit card payments, there may still be ways to use your card.
• Paying vendor bills with a business credit card can have several benefits, including earning rewards, having more time to pay and tracking expenses with ease.
• If your vendor doesn’t directly accept credit card payments, you may be able to pay your invoice with your card via your credit card issuer or a third-party company.
• Capital One Business cardholders can easily pay vendor bills with their card using the Accounts Payable feature—with no sign-up or subscription fees.

There are a few different ways you may be able to pay vendors with a credit card:

• Pay directly: The ideal scenario, of course, would be to pay your vendor directly using your business credit card, purchasing card or virtual card. Payment may be as simple as following a link on your invoice.
• Pay through your credit card issuer: One convenient option is to pay right through your credit card issuer—they may offer a feature that allows cardholders to pay vendors directly through their business account. For example, Capital One Business cardholders have free access to Accounts Payable, a feature that allows you to pay your vendor bills with your business card, even if they don’t typically accept credit card payments. While there are no sign-up or subscription fees for this feature, when you use your Capital One Business card to send a check or ACH to your vendor, there’s a 2.9% processing fee.
• Third-party payment companies: Some third-party companies also allow businesses to process card payments through them. The business owner pays them the invoice amount plus processing fees, and then the company pays the vendor via their preferred payment method, such as ACH payment or a paper check. But be aware that these companies may charge monthly subscription fees on top of payment processing fees for any payment method.

If you’re asking about paying vendors with a credit card, then you may already see some benefits in doing so. And it’s true—paying vendors with a card can be rewarding.

Here are some of the benefits that may influence business owners to pay vendors with a card:

• Earn rewards: Just like consumer cards, many business credit cards offer rewards on your spending, such as cash back or miles. By earning rewards for what you’re already spending, you could save money and support your business’s growth.
• Defer payments: Even if your card requires payment in full each month, it can still offer some payment flexibility from when you receive goods or services and when your credit card payment is due. This can be especially helpful for freeing up cash flow.
• Easily track your expenses: Having all your vendor payments in one place on your business credit card can make it easier to track and categorize your expenses. This can also help streamline bookkeeping and tax preparations.

To pay your vendors with a card through Accounts Payable, just follow these steps:

1. Sign in to your Capital One account.
2. Click on the “Manage Accounts Payable” tab.
3. From the dashboard, you can see upcoming bills or add new bill details.
4. For the bill you wish to pay, select “Schedule payment.”
5. Select your preferred payment and method for payment delivery.

For a more comprehensive look, check out our Accounts Payable guide.

Whether paying your vendor directly or through your bank or a third party, here are a few things to keep in mind when using a credit card:

• Fees and cost: The reason some vendors don’t accept credit cards is processing fees. That’s why there’s typically a 2.9% card transaction fee when you’re paying your vendor with a card through another party—to offset that cost. It’s a good idea to be mindful of these fees to ensure your rewards are worth the cost.
• Interest rate: Some business credit cards may have high interest rates. Paying vendors with a credit card is generally recommended only if you’re able to pay the balance in full, since carrying a balance could potentially accrue a large amount of interest.
• Personal impact: If your business card requires a personal guarantee, you could be held personally responsible for any debt if your business faces financial difficulties. Additionally, if your card issuer reports to consumer credit bureaus, your personal credit could take a hit if you miss payments.

Some vendors may accept credit card payments directly. But if you have vendors that don’t, there are still payment options for using your card. And Capital One makes it easy.

Start managing and streamlining your accounts payable right from your business account through Accounts Payable with Capital One. Still on the hunt for the best credit card for your business’s needs? Compare Capital One’s business credit cards today.