The race to digitalisation has seen the world of business move further away from conventional money management and payment vehicles like physical credit and debit cards, and closer to the integration of tech-based solutions such as virtual payments. As a result, an increasing number of companies resort to integrated financial solutions such as stripe connect alternatives to help them build and scale end-to-end payment experiences.
The introduction of virtual business credit cards stands poof of this transition from physical to digital and the technological evolution of financial services. But what exactly are virtual business credit cards and how can they benefit your company? This article will provide you with the necessary answers and help you gain a better understanding of this innovative area of finance.
Virtual credit cards – what are they?
Unlike the conventional credit cards that you keep in your wallet, virtual cards have no physical form, being generated in a digital format and stored in digital wallets on your smartphone. They are nothing but a set of 16 digits that are randomly generated and linked to your account, hiding your real card number. You can use a virtual credit card just as you’d use a physical one, to purchase goods and services both online and offline and conduct as many transactions as you want (or as many as your balance allows you).
The advantages of using a virtual credit card for your business
There are numerous benefits of using a virtual business credit card instead of a physical one. The first and most obvious advantage is the enhanced security they provide. Businesses are often targeted by hackers and fall victim to security breaches, which is why protecting your credit card details is more important than ever. Virtual credit cards mask your real card number and retailers only get access to the information provided by the temporary card, which significantly reduces the risk of fraud.
Another major advantage offered by virtual credit cards is the ability to streamline payments. Conventional payment methods often incur a cumbersome process that can lead to delays and other issues that can affect the payment process. Virtual cards on the other hand are universally accepted, so transactions can be processed immediately. Needless to say, making sure your payments are made on time can improve your relationships with vendors and other business partners.
Virtual cards are also far superior to other payment solutions in terms of visibility. Not only do they allow you to keep close track of all your business expenses and payments, offering a detailed breakdown of all the transactions you’ve conducted, but they also make it easy to share this information with your finance team so you can stay on top of your finances with ease.
In addition, virtual credit cards make it easier for companies to control and limit employee spending. This is an area where many businesses struggle given that sometimes employees have direct access to company funds and that can lead to all sorts of unnecessary purchases. Fortunately, virtual cards provide spending control features that enable business owners to manage payments and reduce the risk of overspending.
