5 Reasons to use Virtual Cards for Company Spending in 2022
Dubai, UAE - January 29, 2022
Businesses around the world rely on one of the three following methods to pay their workers and vendors: writing checks, sending electronic payments, and presenting payment cards. Until today.
Over the past five years, a growing number of digitally-driven companies have discovered a new, better way to make payments: Virtual cards.
What are virtual cards?
A virtual card works just like a physical card. It has all the same credentials as a physical payment card, including:
- Cardholder Name
- 16-digit card number
- CVC
- Expiry Date
Virtual cards empower organizations with visibility and control overspending in the new and modern era of remote working. A virtual card can be generated instantaneously either for an online one-time transaction or multiple recurring ones. It can also be created for specific use cases such as payment for a certain subscription on a recurring basis or for travel for a specific trip.
The controls that an organization can put on the cards can help it preserve its budget, minimize fraud risks, and increase control over expenses. This is driving more businesses than ever to opt for virtual cards to manage their finances.
Food for thought: Imagine you run a food delivery business
By using one-time virtual cards, you can program cards for the thousands of delivery drivers in your network with the exact amount of each food pick-up, the location and the time. This allows for a high level of control and helps you monitor transactions more easily.
Your business can benefit from virtual cards too
1. Stay on top of vendor payments
Create virtual cards with custom spending limits for each vendor or subscription service your business uses to avoid overcharges and/or manage recurring fees.
2. Manage card & spend controls easily
You can easily freeze virtual cards, as well as set spending limits, or program them for one-time usage. This way you can control your budgets and limit how much your employees can spend. Limits can be mapped by job level, function, geography etc. thereby allowing a high degree of flexibility and control on the spend depending on the user.
3. Reduce Fraud Risks
When multiple employees and vendors share corporate cards, organizations are exposed to higher fraud risks. Using virtual cards can make electronic payments safer and more secure.
4. Make online purchasing easier for high performing teams
In a new world where teams need to be agile, facilitating quick and efficient purchases of products and services is necessary. Virtual cards can be instantly issued and with automatic set budgets.
5. Improve spending visibility and automation
Virtual cards provide rich transaction data. Every expense charged on the card, receipt uploaded or any detail entered can be shared with finance teams to easily track spending in real-time. This provides real-time visibility into spending, enabling data-driven decisions that can streamline and automate different stages of the payment process.
Want to find out more? Get in touch with our team today!