Perhaps the most dangerous phrase in the business world is "we've always done it this way." In payments, this inertia is costing finance teams more than they realize. A Visa survey conducted with Bank of America in late 2025 of 2,400 finance leaders showed that wire transfers are the most expensive payment method, averaging $16.39 per transaction—more than double other methods. Yet, the more revealing findings were hidden in the rest of the data.

The perception of payment costs often diverges sharply from reality, and this gap is the core of the problem. Most finance teams believe they know which payment methods are expensive and which are cheap, but the actual numbers often paint a picture that contradicts intuition.

Virtual cards are often seen as a high-cost option, but in fact, they are among the lowest-cost payment methods available. Finance leaders report an average cost of $7.25 per transaction, while broader industry benchmarks show this figure is even lower. In contrast, checks average $8.84 per transaction, and this does not yet account for hidden operational costs.

The question is, why do finance teams misjudge so consistently? The answer often comes down to visibility.

When Perception Lags Reality

Kyle Frase, Vice President of Commercial Card Advisory at Bank of America, points to visibility as the root of the problem. The costs of traditional payment methods like checks, ACH, and wire transfers are clear: clear line items in the budget feel manageable and familiar. He says, "These methods have explicit per-transaction costs, such as $25 per wire transfer."

But he warns that other payment methods are different. The true cost of checks lies almost entirely outside per-transaction fees, manifesting in physical processing, postage, unclaimed property reporting, manual reconciliation, and the fraud risk exposed by printing routing numbers on paper. Most of these costs are buried in paid labor hours that finance teams have become accustomed to not counting. Frase recalls that one client required one to two people just to manage the check processing workflow, and another two to three people spending several days each month stuffing envelopes and mailing payments to suppliers. Additionally, the company needed unclaimed property reporting specialists for each state where it had significant business. "This doesn't even touch on the potential fraud issues," he adds.

Research confirms this concern: in the past year, 54% of companies using checks reported fraud incidents, the highest rate among all payment methods covered in the survey.

Meanwhile, virtual cards face the opposite problem. They don't have hidden costs; rather, they often have costs attributed to them that don't truly belong. Frase says, "The perceived cost of virtual card payments includes the cost of changing payment methods, as well as the interchange or surcharge fees associated with them." In other words, finance teams often factor in switching friction as a cost, rather than just considering the ongoing fees of the method itself.

Building a True Total Cost of Payments View

For CFOs trying to replace intuition with arithmetic, Kyle suggests starting with the procure-to-pay process. He says, "A deep dive into the procure-to-pay process can be done through working capital consulting or internal process mapping sessions. I believe the most overlooked element of total payment cost is the time required from invoice approval to payment delivery."

Finance teams should account for the payroll time spent on printing and reconciliation, as well as the float lost due to slow settlement. They also need to analyze fraud exposure in relation to historical losses, and the storage costs that continue to accrue after payments are completed. Once these items are clearly visible, the cost ranking in finance teams' minds will naturally restructure.

The Real Face of Savings

Kyle describes first-year savings as "durable rather than dramatic." "The opportunity is highly dependent on the specific accounts payable characteristics of the client," he says, "but these savings are repeatable year after year." A company that reduces check volume in the first year can still achieve roughly the same benefits in the second year and beyond.

Rebates are a key factor for many CFOs weighing payment costs. The study found that 93% of virtual card users receive rebates, with finance leaders reporting typical rebate amounts of 1.1% to 2% of spend. Kyle says, "Rebates help justify and offset the cost of incorporating virtual payments into the mix. Rebates can be scaled, but they are highly dependent on the client's commitment to expanding their virtual card program."

Shifting from a check-dominated to a card-led approach is not a simple switch that can be completed within one accounts payable cycle. It's a multi-quarter project involving supplier enablement, contract renegotiation, and internal change management. Those who persist will be rewarded with a valuable prize: a payment ledger where true costs align with line items. Then, finance teams will no longer pay a premium for the hollow comfort of "business as usual."

Finding a Better Way Forward

Understanding the true sources of payment costs is the first step. Building on that, it's essential to clearly map the procure-to-pay process, identify where costs are hidden, and make a compelling case for change based on your organization's own accounts payable characteristics, rather than industry averages. A payment partner like Bank of America, with deep experience in payment operations, can help you achieve this.