The use of virtual cards is widely increased in the business world. And, there are complete chances that it will grow further, as the operational finances are adapting to the new normal. The reason for this acceleration is the ease of accounting and reduced processing.
According to a report, it was estimated that a large business spends around $168 billion in purchases. This means that by 2022 there are chances that virtual card spending would reach $355 billion. We all have seen how the COVID-19 has pushed the use of virtual cards beyond expectations. But, how is it driving growth and bringing benefits to the businesses? Before we tell you about its positive impact, know what exactly a virtual card is.
What is a Virtual Card?
As the name suggests, It is a device that is used for virtual payments. They are not like traditional debit cards. They can be easily generated by a 16- digit number and stored in your online account. The process of the generation of the digit number is known as tokenization. The possibilities are endless with “the best virtual cards” as they have online purchase information. In addition to it, virtual cards also offer custom controls to cards for recurring payments and sharing of unique card numbers with different billers for better tracking. This increases the workflow in your business and helps in paying invoices more efficiently. Besides, it has many advantages for your business such as more security than standard cards, control over spending, fraud protection and subscription management. Let us look at each of them in detail.
Virtual Cards have more security
As already mentioned, virtual cards are completely digital. So, there is no chance that they will be lost or stolen. For example, if your website gets hacked, nothing can be lost except for a virtual number. These cards offer a complete layer of security, and set credit limits and expiration dates. Also, its feature providing a single purchase restricts untrained employees to misuse it.
It controls overspending: Of the features of virtual cards is that they also allow you to control overspending. So, instead of providing your employees with high-limit cards, you can generate the token number and get a virtual card that sets the spend limits. This will save the company’s funds. Also, it enables your employees to select a date for closing it and scheduling it after one payment.
The digital cards are attached to the main credit or debit account of the user. But the virtual cards protect the personally identifiable information(PII) of the user. They do not have any magnetic strips and visible card numbers which makes the infiltration of the account quite difficult. The one-time payment is made with the help of the random token numbers and if anyone grants access to the account it needs a pin. This adds an extra layer of protection, securing it from any kind of fraud.
The information mentioned above clearly states that virtual cards are the best updates over traditional cards. From better transaction detail to subscription management, they have a lot to offer to your business. So, if you want to manage the non-payroll spend with greater visibility, include virtual cards in your business.