Although virtual credit card technology has been available since 2009, many continue to ask “what is a virtual card?” In 2015, CFO Magazine reported on the growing need for more secure payments and cited virtual cards as the answer to many pains experienced by CFOs today, including security threats, costly paper checks and inefficient accounting processes.
CSI globalVCard has experienced phenomenal growth since 2009 as businesses discover the many benefits of our virtual card technology, and as CFO Magazine reported, explosive growth in the coming years would not be a surprise. Not only is there little to no cost involved, virtual cards offer security, control and ease that is not available with any other form of payment.
If you’re among those still asking, “what is a virtual credit card?”, this post is designed to put that question to rest with answers you can use to make the case for virtual cards in your own business.
What is a virtual credit card?
A virtual credit card is a unique credit card number that is generated to settle a specific transaction. There is no plastic card involved; instead the number is generated electronically via web or mobile. The virtual credit card number is typically issued for the exact amount of the transaction (similar to a check), significantly reducing the possibility of fraud. In addition to this heightened security, there are many reasons why businesses are rapidly adopting this technology.
What are the benefits of virtual credit cards?
- Security – 2014 became known as the year of the cyber attack, reminding us of the inherent risks involved with credit card usage. Single-use virtual credit cards eliminate the risk of stored credit card numbers being compromised. A unique credit card number is generated for a specific transaction, and that number becomes invalid after the intended transaction is complete. The result? Very disappointed thieves who discovered that the credit card number they’d just stolen was completely useless.
- Spending controls – Virtual credit cards provide an unmatched ability to control all spending parameters. As payment is being issued, unique controls allow the user to place restrictions including:
- the dollar amount, which can be set to an exact amount or within a range
- the number of times it can be used, whether it’s a one-time payment or valid for multiple uses
- where the virtual card can be spent (i.e. card usage can be limited by merchant category code), which helps to reduce unauthorized spending
- Cost effective – It’s hard to believe that the majority of U.S. businesses continue to write paper checks – a cost that Wall Street Journal reported could reach up to $20 per check. Paying company bills through a virtual credit card system like globalVCard can result in tremendous savings, measured in both hard costs and the value of time and staff savings. In fact, we guarantee ROI – with no out-of-pocket costs and a monthly rebate based on qualifying spend.
- Easier accounting – Virtual credit cards enable employers to not only control spending, but also monitor it. Since one card number is generated for each transaction, those numbers can be electronically tracked and reconciled within a company’s accounting software. At any given time, analysis can be performed to evaluate spending by employee, by department or cost center, and even tracked against budget.
- Versatility – Wherever corporate payments are needed – electronic accounts payable, corporate travel payments, mobile payments – virtual credit cards add a vital layer of security, control and efficiency.
In the video below, some of our customers share how our virtual credit card system has impacted their business. It would be our pleasure to introduce your business to our globalVCard virtual card payment system. Contact us today and allow us to show you what globalVCard can do for you.