Virtual cards can drastically change the way your business manages and makes payments, saving your business time and money as well as increasing security and flexibility to your team. Here we explore the benefits of virtual credit cards and how they can make a difference to your business.
What are virtual cards?
Virtual credit cards and virtual debit cards are created online and act just like a typical credit or debit card. They exist only in the digital world, so you won’t be issued with a physical card.
They’re accepted anywhere that other usual credit and debit cards are taken. The main differences lie in how they can be used.
Virtual cards are easily created and can just as easily be cancelled, making them safer to use and less likely to be stolen or cloned. Additionally, virtual credit cards give you more control of your spending, and help to streamline how payments are made.
How can virtual credit cards benefit your business?
1. Virtual cards for the entire team
A key benefit with virtual cards is that they can be issued to as many people as you like within your business. You can retain control of spending by setting daily, weekly or monthly spend limits for each card.
This eliminates potential delays in waiting for payment approval and empowers staff who need to make frequent purchases and aren’t reliant on using the one physical company credit card.
2. Better accountability
With virtual debit cards, you can enjoy increased accountability for your business’s spending. Each payment made on virtual cards can be assigned to a specific supplier, which means you know exactly where your funds are being spent. This can save your accounts team a huge amount of time and effort when reconciling payments.
3. Payment security
Virtual credit cards may be considered safer and more secure than using physical cards. Without the existence of a physical card, it becomes almost impossible to clone virtual cards.
Additionally, you can create cards which expire after just one use. The ease with which virtual cards can be created and then cancelled means it doesn’t matter how many you use. Setting your virtual debit cards to expire when you want gives you better control over your money. It also makes it possible to easily cancel a card when a member of staff leaves the business.
4. Virtual cards are easy to create
Setting up a traditional business credit card can be time consuming, with plenty of forms to fill in. By contrast, virtual cards can be set up easily and simultaneously for different users with just a few clicks.
There’s usually no sign-up or annual fee either, meaning virtual credit cards can save you money too.
Which virtual cards are the best?
It’s worth doing some research into what best suits your business, as different providers offer different features.
For example, Airwallex is a virtual card provider that allows you to spend in different currencies without paying high fees, which is worth considering if you buy or trade internationally.
Other providers, such as Citi Premier, reward you with points when you spend in certain restaurants, hotels and shops. Some give a welcome offer in points when you open a card.
Monese is a virtual card that you open and operate via a mobile app. You can set up recurring payments, use budgeting tools, record expenses and arrange set amounts of foreign currency card spending free of charge.
Is it worth using virtual cards?
With everything seemingly going digital these days, it makes sense that virtual debit cards and virtual credit cards will become more popular with businesses too.
Whatever the size of your business, virtual cards can allow you to manage spending, cut down on admin and increase the security of your business. Virtual cards also allow you better awareness around your company’s spending, and help improve accountability for your spending.
To discuss how virtual cards could improve your business, and for help with budgeting and cashflow management, please get in touch.