We’re often asked, what exactly is a virtual card for business? Many business leaders have experience with virtual payment methods, but they’re still discovering the benefits of having a virtual card for business finances.
For a start, virtual cards have existed for a really long time. In some sectors like travel, it has become one of the primary means of payment.
There are several kinds of virtual cards across both business and consumer fronts, but there are three main types in general.
Types of virtual cards for business
- The single payment virtual card: created for a specific vendor or amount; think digital gift cards.
- A virtual card that’s connected to a physical card: access to a virtual card that's connected to a plastic or metal company card.
- Virtual cards with a dedicated budget: allows you to assign funds to specific cards; for example, you can assign funds to your marketing team to use for online ad campaigns.
Is having a virtual card more time-saving and cost-efficient?
Virtual cards can be used when your team needs to make company purchases quickly outside of traditional supplier invoice payments. Instead of asking your employees to wait for a plastic card in the post, you can issue a virtual card in one click. This will allow your team to spend straight away without interfering with their productivity.
Your accounts payable (AP) team will be liberated from a lot of manual work. Instead of relying on cash or other payment methods, all the transactions are digitised. This allows your team to automate operations and reduce manual administration.
Virtual company cards also eliminate the whole employee reimbursement process. As a result, it'll help empower your employees and giving more time back to your payroll and HR departments.
Virtual cards are lower risk
At Swipey, we offer virtual cards for businesses that aren’t directly linked to your primary corporate bank accounts. Instead, the virtual company cards are connected to a virtual wallet, so your information isn’t at risk.
Another security feature includes the virtual card number itself; thieves and scammers can’t trace a virtual card number unless the cardholder’s identity or actual card has been identified. This security measure prevents the theft of personal information and misuse.
Finally, virtual cards can also have a minimum and maximum credit limit per transaction each day. It also can be set to be valid for a specific period. This means end-users who identify suspicious activity on their cards can block them immediately online. No more waiting on the line to block suspicious transactions.
Less plastic, more sustainable
A couple of years ago, an environmental study from WWF International mentioned that people worldwide could be ingesting five grams of microscopic plastic particles every week, the equivalent weight of a credit card.
The environmental impact of plastic pollution is well known. Researchers mention that consumption changes can help diminish the repercussions. One simple way could include introducing virtual company cards to your business.
Budget accuracy and transparency
Virtual company cards allow you to manage spend limit in real-time. Breaking up your budget and allocating it via different virtual cards quickly and efficiently is way better than dealing with multiple payment accounts. Also, you can track all transactions and add spend policies to each of the cards, so you don’t have to worry about overspending.
If you like the sound of virtual company cards, find out more about how Swipey's virtual cards can transform the way you manage payments and expenses in your business.