Discover Global Network: How Harnessing Transaction Data Unlocks Spend Management and Reduces Fraud for Businesses

Data is the fuel driving today’s world toward a more connected, digital tomorrow.

The right data can be valuable to businesses interested in driving results and efficiencies when it comes to their spend management and fraud prevention functions.

“For large enterprises, the more data they have, the more informed decisions they can make,” Marcos Gelfi, vice president and global head of commercial fraud/dispute products and cardholder solutions at Discover® Global Network, told PYMNTS.

As businesses come to grapple with the complexities of modern finance, innovations in data management and expense solutions are playing a pivotal role, he said.

An organized and efficient spend management program is essential in today’s dynamic operating environment, particularly as innovations such as travel accounts and virtual card numbers are revolutionizing traditional expense management practices.

“Travel accounts extend a line of credit without the need for a physical corporate card, while virtual card numbers offer a modernized solution with flexibility in transaction amounts, merchant types and frequencies,” Gelfi said.

These advancements provide businesses with greater control over expenses and streamline reconciliation processes, helping to enhance overall operational efficiency.

“Data is the backbone of everything,” Gelfi said. “By leveraging data and defining clear corporate policies, businesses can achieve greater efficiencies and robust fraud prevention … The data that you capture is pretty important and can help you negotiate better with suppliers, and help you manage your budget better.”

Effective data management is integral to efficient expense management. Large corporations benefit from capturing vast amounts of transaction data, which aids in informed decision-making and budget management. Gelfi emphasized the importance of enriched data, such as invoice payment numbers and corporate IDs, in negotiating better deals with suppliers and preventing misuse of company budgets.

“Data is crucial for both large enterprises and small businesses,” Gelfi said. “It helps manage working capital and ensures efficient expense management.”

This comprehensive approach to data use enables businesses to optimize their financial operations and achieve savings.

The strategic use of data also commonly serves to unlock greater operational leverage for businesses. For large enterprises, the wealth of data available allows for more informed decision-making and better control over expenses. For small- to medium-sized businesses (SMBs), data management facilitates efficient capital management and expense tracking.

“The most important thing is for the business to understand what they are trying to solve for … and that is typically to help control the expenses from a business perspective and help with reconciliation purposes for efficiencies,” Gelfi explained.

Looking ahead, the adoption of virtual card numbers and the integration of artificial intelligence are set to transform the expense management landscape further. Gelfi highlighted the convenience and security of virtual card numbers, which can be easily provisioned into mobile wallets for seamless transactions.

Additionally, AI-powered automation simplifies expense reporting and enhances fraud prevention.

“AI can automatically approve transactions and process expense reports, reducing the need for manual intervention,” Gelfi said.

This level of automation streamlines business operations and enhances the overall employee experience.

Gelfi highlighted the findings from a study conducted by Discover, which included over 2,700 corporations and small business decision-makers. Of those surveyed, 68% of respondents said fraud prevention and security services were their primary concerns, underscoring the importance of robust data management practices in preventing fraud.

“The data we capture as a corporate program to help prevent fraud can be post-transaction or even pre-transaction, aiding in decision-making through fraud prevention tools,” he said.

This proactive approach to data use is fundamental in creating a secure and efficient spend management framework.

“Unfortunately, there are only going to be more cyberattacks and more fraudulent transactions,” he said. “We need to continue to evolve as a payment industry to fight that.”

Ultimately, he stressed that the right solution is never a “one-size-fits-all” exercise but that businesses must understand what they want from their expense solutions. Once they have that in mind, the marketplace will have already responded with innovative solutions to meet the need.

“There are so many products and capabilities available, but once you understand the core of what you are solving for from a spend management goal, that’s the best way to craft the best solution,” Gelfi said.

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