Unlocking Spend Management and Reducing Fraud Through Transaction Data

In today’s fast-paced digital world, data has become the lifeblood for businesses striving for efficiency and security. Discover® Global Network recognizes this potential and is leveraging transaction data to enhance spend management and combat fraud. According to Marcos Gelfi, vice president and global head of commercial fraud/dispute products at Discover, having the right data allows businesses to make informed decisions and drive operational efficiencies.

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The Power of Data in Spend Management

For large enterprises, more data translates to better insights. Gelfi notes that as businesses navigate the complexities of modern finance, innovative data management tools are essential. A well-organized spend management program not only streamlines expenses but also positions businesses to respond swiftly to changing market conditions.

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Innovations Transforming Expense Management

Recent advancements like travel accounts and virtual card numbers are revolutionizing traditional expense management. Travel accounts extend lines of credit without needing a physical card, while virtual card numbers provide flexibility in transaction amounts and merchant types. These tools give businesses greater control over expenses and simplify reconciliation processes.

“Data is the backbone of everything,” Gelfi asserts. By leveraging transaction data and establishing clear corporate policies, companies can enhance efficiency and implement robust fraud prevention measures. In fact, the insights gained from data can also facilitate better negotiations with suppliers and improve budget management.

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Unlocking Operational Efficiency

Effective data management is crucial for optimizing expense management. Large corporations can capture and analyze extensive transaction data, leading to better decision-making. Gelfi emphasizes that enriched data—such as invoice payment numbers and corporate IDs—can significantly enhance supplier negotiations and prevent budget misuse.

Both large enterprises and small- to medium-sized businesses (SMBs) can benefit from a comprehensive approach to data utilization. By understanding their goals—primarily controlling expenses and ensuring efficient reconciliation—businesses can better leverage their data for operational efficiency.

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The Future of Expense Management

The future looks bright with the growing adoption of virtual card numbers and artificial intelligence (AI) in expense management. Gelfi points out the convenience and security that virtual cards offer, especially when integrated into mobile wallets. Moreover, AI can streamline operations by automating transaction approvals and expense reporting, reducing the need for manual interventions and enhancing the overall employee experience.

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Addressing Security Concerns

According to a study by Discover, 68% of corporations and small business decision-makers highlighted fraud prevention as their primary concern. Gelfi emphasizes the importance of robust data management in preventing fraud. By capturing data both pre- and post-transaction, businesses can utilize advanced fraud prevention tools effectively.

As cyberattacks and fraudulent transactions continue to rise, the payment industry must evolve. Gelfi stresses that there’s no one-size-fits-all solution; businesses must define their specific needs in spend management to identify the best tools available in the marketplace.

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The Future of Spend Management

In a world where data drives decisions, businesses that effectively harness transaction data can unlock significant benefits in spend management and fraud prevention. With innovative solutions at their fingertips, companies are well-equipped to navigate the complexities of modern finance. As Gelfi aptly states, understanding the core objectives of spend management is crucial for crafting the best solution tailored to a business's unique needs.

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