How Virtual Credit Cards Are Revolutionizing Purchasing

Virtual cards provide a unique, virtual credit card number that is linked to a credit card account of the user’s choice. This added veneer of security would protect against fraud from online shopping, or data breaches from banks or third parties.

In a company context, virtual credit cards are still protecting user’s money and data, but with a little more nuance. For instance, a unique credit card number could be generated that only works for a certain amount, or for use at a specific vendor.

Users would also be able to toggle more general spending limits as well as expiration dates, and manage the unique numbers electronically. While depending on the issuer, a virtual credit card number would also allow you to lock, manage and delete a virtual account.

For a newer technology, the advantages of virtual cards are quite extensive. With the ability to set spending limits and toggle expiry, limiting tail spend and overspending in general for employees becomes extremely simple. In most systems, leftover amounts are automatically restored to the main account upon expiry or deactivation of the assigned virtual number.

Visibility into expenses is also enhanced with the usage of virtual cards, as tracking expenses over specific periods of time and generating reports by employee, vendor, and so on comes built in with most providers. They also have a profound effect on an organization’s spend culture, allowing authorization and permissions to be a proactive experience rather than a reactive one. Team members using their individual cards can make purchases with the company’s knowledge. The permission then starts with when that team member is issued a card in the first place, since every card number is linked to the primary account holder, effectively acting as a pre-approved purchasing tool.

It is also considerably cheaper for most companies. When considering the high fees for small businesses trying to get credit cards, when they are linked to a checking account or debit card means employees don’t need access to those specific accounts, just the cards chosen to assign them, allowing for ultimate control and spend visibility.

Making the jump to virtual credit cards protects organizations from the most prominent sources of fraud, reduces the risk of data breaches and data entry errors, provides full visibility and organization into expenses, and supports true automation for most of the accounts payable tasks. This has never been possible with the usage and implementation of a single tool before.

Risks and pain points related to reimbursements, authorization, and even straight up card theft are completely minimized with the advent of the virtual card. These cards can’t get lost, duplicated, or stolen. With pre-determined purchasing stipulations and amount limits, the security and comfort that comes with virtual cards for businesses cannot be understated.

While specific providers are dependent on location, and are only an online search away, the most popular usage seems to be single-use accounts or SUAs and are normal 16-digit account numbers, but they can only be used once. They’re issued right when an employee makes an expense request, and once the finance or operations team approves it, the number is activated and ready for use for the exact predetermined amount.

Now, security, precision and visibility has been emphasized. With the ability to automatically generate and email numbers to vendors as soon as you’ve approved the invoice, the vendor is only allowed to charge the exact amount and only make as many charges as authorized.

This way, vendor mistakes are avoided and much larger expenses can be paid without the risk of fees or surcharges.