As your business progresses, you need safe, secure, and easy-to-track transaction modes for smart spending. A prepaid virtual card is the best fit as it allows your employees to pay for things they need via online websites. The process is quicker and safer than traditional corporate credit cards.
You may allocate a specific sum to the card in advance and use it from anywhere. The card has the usual details of a physical bank card, such as expiration date, CVV code, and card number. Here are the vital things to know about the virtual card before choosing them.
How Do They Work?
According to a recent report, you may expect a rise of up to $122.4 billion per year in commercial spending by 2021. So, the popularity of these cards is on an all-time high. But, a majority of people still grapple with understanding the meaning of virtual cards. These are online prepaid cards that facilitate the checkout process in e-commerce shopping.
You can add money into the online account and generate disposable cards for online purchases by your employees. This way, you can use a different card for every purchase and delete the same card once the transaction is finished. Even if someone tries to steal the card information, it becomes obsolete when deleted from the system. Also, the amount is prepaid to minimize the risk of any fraud or theft.
The Uses of Virtual Cards
In an organization, you may need a virtual card for several transactions. You can use them as a gift for the top performers or buy subscriptions to the latest SaaS software. Business expenses related to outstation conferences become easy when you can pay for hotel stays, and flight tickets with a few simple clicks.
Even occasional expenses like office supplies or event participation fees can be managed through prepaid virtual cards.
Are There Any Security Risks?
Traditional credit card transactions can be a potential security risk to sensitive company data. Without proper oversight, you cannot allow the sharing of the card details. Sometimes, the employees may note card details on their Post-It or email without any concern for information security.
But, virtual cards negate all these risks with added security layers. If a hacker somehow finds your virtual card details, you can cancel it immediately without affecting the entire account. Also, it has more visibility than the usual company cards.
How to Select the Right Card?
You can find various options in virtual prepaid cards. Instead of feeling overwhelmed by the choices, make your selection based on:
Single or Recurring-Use Access
You can choose a single-use card or recurring card with a monthly subscription to control the total expense. In a single-use card, you can place a one-off order and discard the card later. On the other hand, recurring-use cards have specific account details. You can use the card for the length of its subscription period, depending on your needs.
Number of Cards You Need
If you want to create new virtual cards for various purchases, choose providers offering multiple card details.
Most importantly, integrate the cards into your expense management workflows to keep control over company payments and records.