Virtual corporate cards make it simple to spend money while maintaining control over your organization. Your workers can generate cards in seconds to use for online purchases or mobile wallet transactions. They are also a convenient method to pay for subscriptions, handle employee benefits, and avoid fraud. But what does a virtual payment card actually means? And why is it important for your business? Continue reading to learn more.
What is a virtual payment card?
A virtual payment card is an online card that performs the same functions as a traditional payment card. It’s only a safer and simple use alternative that can make your electronic payments quick and easy.
As the name implies, this card exists entirely online and is linked to your real bank card throughout a 16-digit number generated at random. It is possible to set a spending limit or an expiration date for a virtual card as well or even limit it to a single-use merchant. Therefore, you can be sure that your main bank card account is secure, and fraudulent purchases are prevented.
Read our article on VCC for a thorough understanding.
6 reasons why your company needs to switch to virtual payment cards :
Simplified accounts payable processes
The use of virtual cards eliminates the inefficiencies associated with paper checks. Accounts payable departments may focus less on payment processing and more on financial responsibilities with single-issue cards. It’s no longer needed to write checks, stuff checks into envelopes, or meter envelopes.
A simplified accounts payable procedure, which uses single-issued virtual cards, not only saves time but also reduces or eliminates the possibility of human mistakes. Virtual cards can help A/P departments overcome problems in the accounts payable process.
Keep the service going when there is employee turnover
Some software subscriptions, such as your CRM or AWS accounts, are necessary. When the original cardholder quits the firm, you may expect to get frightening emails stating that billing has failed and that your account will be suspended.
You may easily change card ownership without having to update billing information for each application using virtual cards. It’s one less administrative headache to deal with.
The 16-digit card number is unique for each payment and is only used once by allowing you to select the exact payment amount and connecting that payment to specific invoices. A virtual card cannot be stolen or re-used in any way.
It also runs out once you’ve spent the maximum cash amount.
CFOs will also like the benefit of not having to give open lines of credit to vendors/suppliers, knowing that the danger of theft and fraud is much minimized with this new solution.
With single-issue cards, companies have more control. Each virtual card is given for a specified monetary amount to a single merchant or provider. Without a physical card or an open line of credit, the cards are handled by the seller in the same way as traditional credit or payment card payments.
Purchases are automatically put into the supplier’s accounts receivable management system using this simple payment option, eliminating the need for additional paperwork. Moreover, using end-to-end expense management tools like Expensya, employees can have a real-time overview of their spending, which makes the job a lot easier for them and their managers. The CFO will appreciate that the accounts payable (AP) department has visibility into cash management, in addition to having better internal control.
Enhance trust and employee independence
For company owners and managers, virtual payment cards are a great tool for empowering employees, improving trust, increasing transparency and efficiency, and more. Managers can authorize and track employee spending in real-time via a mobile app or a computer, providing them more control and giving their staff the confidence to perform at their best.
Virtual payment cards eliminate the reimbursement process
Thanks to virtual payment cards, employees can simply request budgets, get them approved by their managers, and generate a virtual card. No need to pay from their pockets and wait days or even weeks to get reimbursed.
What are you waiting for to try out virtual payment cards?
In today’s economic situation, it’s critical for businesses to grow by using technological advancements that can help them succeed. And selecting the appropriate vendor or supplier payment method is a key component of that success.
It’ll only be a matter of time until word gets out to small and large businesses alike about the benefits of virtual cards, which are already being reaped by early adopters. They save you time, money, and offer security to your card payments.