Learn how banks can move beyond rebates and help clients see the full value of commercial cards.
For over a decade, rebates have been the main selling point for commercial card programs. They’re easy to calculate, simple to explain, and look good in any business case. For many finance teams, the logic has been simple: spend more on card = get a bigger rebate = prove more value.
But rebates are also a zero-sum game. Every dollar a bank pays out is a dollar shaved off their profit margin. In a higher-rate, margin-sensitive environment, they’re no longer sustainable as the centerpiece of a bank’s value proposition. Most bankers know this but most clients don’t, and the disconnect is holding back card adoption.
The challenge lies in helping clients see the full value story. And the only way to do that is by grounding the pitch in data, showing clients the real numbers they’re missing, and reframing card not just as a rebate generator, but as a strategic working capital tool.
Why rebates took over
In the 2010s, rates were historically low. The liquidity benefit of paying by card instead of check was minimal. Rebates were easier to point to, so the banks did.
At the same time, rebates are beautifully simple. They require no mental gymnastics and no leap of faith. A client can point to the rebate as hard evidence of value creation. For many finance teams under pressure to justify investments quickly, that clarity was invaluable.
But rebates have also created tunnel vision. For too long, they’ve been treated as the only number that matters, drowning out the more ‘complex’ benefits that card programs provide.
Today’s economics are different. With higher interest rates, every extra day a company holds onto cash carries meaningful value. Extending days payable outstanding (DPO) even slightly can unlock significant liquidity, particularly for mid-market companies managing tight margins and variable supply chain costs.
That shift changes the conversation. While rebates move value from one pocket to another, working capital optimization and operational improvements expand the pie itself. And in today’s environment, the latter is far more valuable than the former.
The CFO’s blind spot
There’s just one problem: even as bankers recognize the limits of rebates, many CFOs and finance teams remain fixated on them. Because rebates are easily visible, while other benefits are more abstract.
A rebate check at the end of the year is easy to see, book, and justify. It’s harder to quantify the savings from faster payment cycles, or the long-term value of reduced fraud exposure. Efficiency gains don’t show up neatly unless someone does the work of translating them into numbers and most corporate finance teams don’t have the time or tools to do that analysis.
So rebates keep winning by default. They may not be the most meaningful source of value, but they are the most measurable. And until banks change how they frame the conversation, clients will keep treating rebates as the centerpiece of card programs.
Breaking the rebate trap
If rebates are winning because they’re measurable, then banks need to make everything else measurable too. That means using the client’s own spend data, showing how much cash is tied up in current payment processes, quantifying the value of discounts they’re missing, and putting a dollar figure on the cost of sticking with checks.
Once a CFO sees the numbers in black and white, the conversation changes. It’s no longer confined to a year-end rebate, it becomes a discussion about the tangible impact on working capital and the company’s cash position.
How banks can make the shift
Moving beyond rebates isn’t just a matter of messaging. It means changing how banks quantify and prove value to clients. That requires three shifts.
First, lead with the client’s data, not generic benefits. Every company has unique spend patterns, supplier relationships, and cash flow challenges. Grounding the conversation in their actual numbers is what makes the value real.
Second, reframe the card as a strategic treasury tool, not a tactical payment product. When cards are positioned as instruments for managing liquidity and working capital, the conversation naturally moves beyond rebates.
And third, make the benefits easy to visualize. Dashboards, benchmarks, and simple summaries can help Finance Teams see what’s at stake and sell the story internally. The easier it is for them to champion the value, the faster adoption will follow.
The way forward
Rebates might have built the last era of commercial card adoption, but they won’t define the next. As margins tighten and client expectations evolve, banks that continue to rely on rebates as the headline will be drawn into a race to the bottom.
The real opportunity lies in data. By quantifying the benefits that clients can’t see on their own, banks can rewrite the commercial card value story. In turn, they can protect margins while becoming a more valuable partner in the client’s long-term success.
How Codat helps
Breaking the rebate trap is a data challenge. Banks need to show clients, in black and white, the money they’re leaving on the table through inefficient payables, missed discounts, or reliance on checks.
That’s where Codat comes in.
We help banks transform abstract value propositions into hard numbers with data direct from clients’ ERP and accounting systems. With Codat, you can model a client’s actual spend patterns, quantify the cost of their current processes, and demonstrate exactly how much liquidity they could unlock by shifting spend onto cards.
Instead of telling clients that commercial cards improve working capital, you can prove it with their own numbers:
- Show the hidden cost of outdated payment methods.
- Highlight missed early-payment discounts.
- Calculate the cash flow impact of extending DPO via card payments.
That’s how the conversation shifts from rebates to strategy and turns into a lasting commercial relationship.
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