How Smart AutoCare created new revenue streams with payments optimization

In an earlier blog article about how optimizing payments can create new revenue streams, we shared an important stat that bears repeating: According to CFO Dive, switching from manually intensive operations such as check writing to an automated accounts payable system can save you around $15 per invoice in overhead costs.

We also noted that at that rate, savings, of course, can add up quickly. Combined with monthly rebates – in essence, cash back from WEX on all payments to enrolled suppliers – a new revenue stream is created.

The proof though, as they say, is in the pudding. And in this case, the pudding is Smart AutoCare.

Smart AutoCare, founded in 1986 and located in Richardson, Texas, is a third party administrator of extended vehicle warranties. The warranties include vehicle service contracts as well as ancillary coverage on things such as paintless dent repair, tires and rims, windshields, key replacement, and more.

With a history of excellence, industry leading service, multiple contract options, and service contracts that are accepted nationwide, Smart AutoCare processes a tremendous amount of claims. How tremendous? Try an average of 450 claims totaling more than $400,000 every day – every day! Such volume created pain points. WEX was there to help.

Let’s learn more from Lori Townsend, vice president of accounting at Smart AutoCare:

“WEX products have been really great in helping alleviate all of our friction points that we have,” says Lori Townsend, vice president of accounting at Smart AutoCare.

Efficiency and scale for Smart AutoCare

By using a digital payments platform such as WEX, payments and reconciliation are streamlined, and planning accuracy is increased.

Businesses like Smart AutoCare can take advantage of WEX’s broad issuing capabilities, technology investments, and focus on customer service in addition to enjoying competitive rebates. WEX is in a unique position with the ability to execute on these offerings in-house, increasing the company’s flexibility. This includes allowing WEX to offer VIP rates that other companies typically can’t offer. Additionally, WEX pays the rebates monthly so that its customers receive their rebates quickly.

Learn how Smart AutoCare was able to minimize manual tasks to increase efficiency, security, and create new revenue streams.

Learn more

“We’ve grown so much: Our contract sales are up, and that means more claims. And so we’re making more claim payments on a daily basis,” says Townsend. “We’re saving money because I’m not sending out checks to repair facilities and so on. I’m able to send them a clean payment – completely free – and not have to worry.”

Security: peace of mind for Smart AutoCare

“What I love about working with WEX is security. WEX helps us by monitoring the activities on the cards to watch for any fraudulent spending that might happen,” explains Townsend.

The use of a virtual card – a single-use, randomly generated 16-digit credit card number – greatly reduces the risk of accounts payable fraud. Virtual cards simplify and increase the security of every transaction. WEX processes billions of dollars annually and has the proven and trusted capabilities to provide customers virtual payment options that save them time and money.

“The service, the tools, the ways that WEX has made my life easier – and the people that we’ve worked with – have just been really great,” says Townsend. “WEX has been so helpful in getting us to where we need to be. What I love most about working with WEX is the people.”

By combining the right products and services into one powerful payment engine, WEX helped Smart AutoCare automate, simplify, and secure payments. WEX can help you, too. Learn more.

About Smart AutoCare:

Smart AutoCare has been focusing on automobile dealerships, financial institutions and the agents who serve them for more than 20 years. They’ve built their reputation on tailoring their expertise to fit the business needs of their clients with innovative products and superior service. Their approach allows them to proudly call more than 200 general agents and 3,000 dealerships across North America and Europe part of the SAC family. Visit smartautocare.com for more information.

Resources:

CFO Dive: Manual AP systems cost companies up to $20 per for manual and $5 per for automated per invoice to process, 2019