Does it feel like B2B payments are more cumbersome than they need to be? Consider adding a virtual card system to your business to make it easier for your team to make the payments they need to without the risk of unauthorized spending.
What Is a Virtual Card?
A virtual card is a digital credit card. For each transaction, a unique credit card number is created for the authorized amount. The credit card number works just like one from a regular, traditional card. Simply input it the same way you would when paying by credit card online with a physical card. Since each card is unique, the resulting charges can be automatically reconciled.
The unique, one-use card numbers are also far more secure than traditional cards. A traditional card is often used by several team members. This means that it can be hard to trace the source of a particular charge. Additionally, card numbers can be compromised, leading to unauthorized spending from someone outside your business. Virtual cards keep the real card number protected so that they can’t be used by people outside the business.
There is no limit to the number of virtual card numbers that can be generated. So, instead of wasting time wondering who has the physical card, team members can simply make the purchases they need without any hassle. The limit on virtual card spending means tighter control of your budget, as well.
Reducing Your Accounting Team’s Workload
The accounts payable process can be convoluted. When using traditional cards, it’s necessary to chase down who is responsible for a specific charge. Reimbursing employees who submit spending reports can be tedious.
With a virtual card, the accounting team can code and approve the charge as part of the purchase order process. This can occur before the virtual card is even issued, which means that the transaction can be reconciled automatically, reducing the need for hands-on work.
One-time or infrequent suppliers can also be shifted to virtual cards to avoid the time that would otherwise go into a bulky invoicing process. Since the supplier is paid when the card number is generated, there is no need to onboard the supplier into the system or process their invoices.
Cut the Risk of Fraud and Unauthorized Spending
With a traditional card, you have to carefully guard your card number. One swipe in the wrong business can lead to skimmers getting access to your information. The result is hours lost disputing the charges and time spent waiting for a replacement card.
With virtual card numbers, you have far more control over who gets access. You can give a virtual number to an employee who you might not otherwise offer access to the business’s regular card. Also, once a card number is used, it is no longer viable, which keeps your accounts more secure.
Cut the Cost of International Payments
Often, the best prices on the supplies that you need can be found through overseas providers. However, cost advantages can disappear once international payment fees or wire transfer costs come into play.
The right virtual card provider can give a company access to bank partners in a wide range of countries. This means that funds move faster and you’re less likely to get stuck with unnecessary fees.
Maximize Rewards and Rebates
Each iteration of the virtual card links back to the original traditional credit card. This means that it is much easier to hit the spending levels required by many reward and rebate programs. Over time, this can add up to substantial savings for your company, since many more payments can be routed through a single card.
Additionally, if you are working with suppliers that offer early-payment discounts, a virtual card makes it easier to take advantage of. Since the card number is created before they’ve ever issued an invoice, you can be sure that you’ll hit the deadline and cut your costs.
Between cost savings and reduced workload, virtual card services can quickly pay for themselves. Run the numbers to figure out how this sort of service can help your business run more smoothly and efficiently while protecting your sensitive financial information.
