How to earn cash back on AP spend and bill payments

Earning cash back on accounts payable (AP) spend and bill payments means using payment methods that provide rewards when your business pays vendors and suppliers. By routing payments through cash back-eligible channels—like virtual cards or rewards-based payment platforms—you can generate returns on money you're already spending.

Since AP spend often makes up a large portion of operational costs, even a small percentage of cash back adds up quickly across all eligible payments.

Let’s explore how your team can earn cashback on AP spend—and how over 3,000 customers are already doing it with Ramp Bill Pay.

Why earning cash back on AP spend matters

Accounts payable (AP) spend covers all payments your business makes to vendors and suppliers, including recurring expenses like utilities, rent, software subscriptions, and other regular costs. These typically represent a significant portion of your company's outgoing cash.

Cash back programs effectively discount your expenses by returning a percentage of spend to your company, creating a new revenue stream from necessary expenditures and improving cash flow without requiring vendors to lower their prices.

Many businesses miss this opportunity by defaulting to traditional payment methods that offer no rewards, often due to concerns about transitioning vendors or managing multiple payment methods. However, a strategic approach to AP spend not only generates cash back but also improves payment visibility, streamlines reconciliation, and can strengthen vendor relationships, turning routine transactions into a source of value for your business.

How to implement a cash back AP strategy: Step-by-step guide

With the benefits of cash back AP spend in mind, the next step is to put a practical strategy in place. Implementing a cash back approach for your accounts payable requires methodical planning and execution.

The following steps will help you maximize your returns while keeping operations efficient.

Step 1: Identify eligible payments and vendors

Start by analyzing your vendor list and payment types to determine cash back eligibility. Focus on vendors who already accept credit cards or virtual cards, especially for recurring services, software subscriptions, and digital marketing expenses. Most SaaS providers, advertising platforms, and professional service firms should already accept card payments.

Eligible payment types often include regular supplier payments, monthly subscriptions, one-time purchases, and many professional services. Exclude payments like payroll, taxes, and loan repayments, as these generally don't qualify for card-based rewards programs.

Step 2: Select and set up cash back payment methods

Start by evaluating payment solutions that offer a strong mix of cashback rewards, broad vendor acceptance, and seamless integration with your existing systems. Virtual cards are often a top choice—they offer built-in security and control, with typical cashback rates of 1–2% on eligible transactions.

When comparing providers, look beyond just the reward rate. Consider factors like redemption options, spending limits, and how easily the tool fits into your current workflows. Once you’ve selected a provider, setup is typically straightforward: you’ll complete an application, verify your business information, connect your bank accounts, and configure user roles and permissions.

It’s also important to define how the program will be managed. Assign administrators to oversee card issuance, set usage policies, and build approval workflows that align with your spend controls. A clear structure upfront ensures teams use the program effectively—and that your business captures every available reward.

Step 3: Create payment request and approval workflows

Build standardized workflows for how payment requests are submitted, reviewed, and approved within your AP system. Start by outlining the core steps: what documentation is required, who initiates the request, and which approvals are needed based on payment size or category.

To maintain control without slowing things down, set clear thresholds—for example, requiring a single approval for smaller payments and dual approval for higher-value transactions. Incorporate automated policy checks to flag out-of-policy spend, and ensure that every step generates a clear audit trail.

Where possible, integrate these workflows directly into your existing AP platform. This allows approvals to happen quickly and in context, without switching systems or relying on back-and-forth emails. Well-designed workflows reduce delays, increase visibility, and help ensure every payment is both timely and properly authorized.

Step 4: Execute payments through cash back-eligible methods

When it's time to pay, select the method that offers the best reward potential and is accepted by the vendor.

• For virtual card payments, generate a unique card number for each transaction or vendor, set spending limits, and securely transmit card details
• For physical card payments, establish clear procedures for card usage, receipt collection, and transaction documentation
• For other eligible methods like rewards-based ACH, follow the platform-specific procedures and keep proper documentation for reconciliation

Step 5: Reconcile transactions and track cash back

Reconciliation is essential to ensure your cashback program delivers as expected. Start by systematically matching each transaction to its corresponding invoice and purchase order, confirming both the payment and the associated cashback amount.

To maintain transparency, record cashback earned as a separate line item in your financial system. This makes it easier to report on savings, track trends, and explain variances during reviews or audits. Establish a clear process for investigating discrepancies—such as differences between expected and actual cashback earned—and resolving them efficiently.

Regular reconciliation doesn’t just support accurate financial reporting—it also helps identify missed opportunities, payment anomalies, or ways to optimize your program over time.

Implementation checklist

Use this checklist alongside the steps above to ensure a smooth rollout and ongoing management of your cash back AP strategy.

• Complete vendor analysis and categorize by acceptance potential
• Select a cash back payment solution based on reward rates and integration capabilities
• Establish payment policies and approval workflows
• Configure user roles and permissions in the payment platform
• Train staff on new payment procedures and documentation requirements
• Create reconciliation processes for tracking cash back earned
• Schedule regular program reviews to identify optimization opportunities
• Develop vendor communication templates for payment method transitions

What to do if a vendor refuses virtual cards

After implementing your cash back AP strategy, you may encounter vendors who are hesitant or unwilling to accept virtual cards. Addressing these situations thoughtfully can help you maintain strong relationships and maximize your cash back potential.

When discussing virtual card acceptance with vendors, focus on mutual benefits such as faster payment processing, improved security, and reduced administrative work. Address concerns by explaining that virtual cards work like regular credit cards and don't require special equipment. It's often more effective to start these conversations with your account manager, who is more invested in maintaining your business relationship, rather than accounts receivable staff.

If a vendor still refuses card payments, consider these alternatives:

1. Reward-eligible ACH payments: Some platforms offer cash back on ACH transfers, usually at lower rates than cards but better than traditional ACH
2. Third-party payment services: These platforms process payments on your behalf, accepting your card and paying the vendor via their preferred method—so you earn rewards while accommodating vendor preferences
3. Physical credit cards: Some vendors who reject virtual cards will accept physical credit cards, especially for in-person or over-the-phone payments

Integrating cash back strategies with your ERP or AP system

Once you've established your vendor payment preferences, the next step is to connect your cash back payment methods with your existing accounting systems. There are several ways to achieve this:

• Native integrations: Pre-built connections between popular ERP systems and payment platforms, requiring minimal technical setup
• API integrations: Allow direct communication between your systems for more customization, but require developer resources
• Third-party connectors: Middleware solutions bridge systems without native integration, offering a balance between simplicity and customization

To sync payment data with your general ledger, establish consistent data mapping between systems and configure your payment platform to export transaction data in a format compatible with your accounting system.

Set up automated data transfers (daily or weekly) to keep records current, and create specific general ledger accounts to track cash back earnings separately from expenses.

How to track and maximize your cash back

Once your systems are in place, the next step is to actively monitor and optimize cashback performance. This starts with visibility. Use a dedicated dashboard to track key metrics like:

• Total cashback earned
• Cashback rate by payment method
• Vendor acceptance rate
• Month-over-month rewards growth

Most payment platforms provide built-in reporting, but you may need to supplement with custom reports from your accounting system. Be sure to track both total cashback earned and cashback as a percentage of eligible spend—this helps you gauge whether you're making the most of the program.

Next, review payment history to spot missed opportunities. Look for vendors that accept cards but were paid by ACH or check, and identify manual exceptions that bypass your cashback flow. One-off or infrequent vendors might have been excluded from your original setup, but may still be eligible for card payments.

Then, use this data to fine-tune your payment strategy. Shift high-volume vendors to virtual cards where possible, and negotiate card acceptance if needed. For vendors with cyclical billing, time larger payments around promotional cashback periods to increase returns. Consolidating spend with the most card-friendly vendors can also increase reward yield.

Finally, set a cadence for quarterly performance reviews. Compare actual results against projections, track acceptance trends, and ensure team members are following workflows correctly. Document what's working—and what isn't—to refine your approach over time.

How Ramp Bill Pay delivers cashback on your AP spend

Ramp Bill Pay is accounts payable software that makes it easy to manage vendor payments—and earn cashback in the process. The system routes invoices, handles approvals, and executes payments, while automatically optimizing for eligible cashback opportunities in the background.

In fact, Ramp paid out $6.5M+ in cashback last year specifically to customers who used a Ramp card to pay bills, turning vendor payments into a new source of return.

Here’s how it works:

1. Upload an invoice directly to Ramp
2. Ramp verifies the invoice and routes it for approval based on your workflows
3. Once approved, choose your preferred payment method (card, ACH, or check)
4. Ramp issues the payment and applies cashback to eligible transactions

Cashback is accrued automatically and shows up in your Ramp dashboard in real time. Rewards can be applied as statement credits or redeemed, depending on your Ramp account type and preferences.

Vendors continue receiving payments through the method that works best for them—credit card, ACH, or check—without needing to change how they interact with you. Your team maintains full control over payment timing, reconciliation, and approval logic, while Ramp optimizes rewards in the background.

Eligibility and limitations: What payments qualify for cashback?

Ramp offers cashback on several payment types, with eligibility depending on the payment method and vendor setup:

• Ramp Card payments: Virtual and physical Ramp card payments earn the full cashback rate with no transaction limits. Best for vendors that accept credit cards.
• ACH payments: Eligible for cashback depending on your Ramp plan and program tier. This expands earning potential even for vendors who don’t accept cards.
• Check payments: Payments issued by check through Ramp also qualify for cashback, offering flexibility for more traditional vendors.

Some categories are excluded due to regulatory or processing constraints. These typically include tax payments, payroll, employee benefits, investments, and loan repayments. Enterprise customers may be eligible for negotiated cashback terms across certain high-volume categories—visible in your account settings.

International payments may qualify depending on region and currency. Payments to sanctioned countries or restricted vendor types are always excluded for compliance reasons.

Make your AP function pay for itself

With Ramp Bill Pay, almost every vendor payment becomes a chance to earn. The platform connects directly to your ERP, keeps workflows compliant, and tracks cashback earnings in real time—no changes to your vendor setup or payment methods required.

Curious how much you could earn? Start turning your necessary expenses into revenue. Get started with Ramp Bill Pay.