Technological advancements led to the evolution of payment options, specifically virtual payment cards. Many companies have recently started incorporating virtual payment cards into their operations. Most consider it a way to streamline the purchasing process while maintaining control over the organisation.
What Is A Virtual Payment Card?
A virtual payment card works in the same manner as a conventional payment card, but the only difference is that it’s an online card. It’s a simple, safe alternative that makes electronic-based payments more efficient.
A virtual payment card, whether you have a virtual debit card or credit card, only exists online and is linked to your actual bank card via a 16-digit number you generate at random. Depending on your card, you can specify a spending limitation plus an expiration date. Making the right configurations keeps your main bank card account safe while preventing fraudulent purchases.
Reasons Why Companies Are Switching To Virtual Payment Cards
The streamlined payment process and convenience that virtual payment cards provide make them a worthwhile addition to any company. Below are reasons why it may be time to jump in with the transition.
1. Makes The Accounts Payable Operations Efficient
Switching to virtual payment cards is one of the best ways to avoid potential inconsistencies when using paper checks. If the accounts payable department in your organisation is struggling with the processing task, the transition to virtual payment cards will help streamline the process.
This can help the department save time on writing checks or metering envelopes. Additionally, it lessens the possibility of human error.
2. Provides A Better Level Of Security
Over the years, the conventional methods of using physical cards have brought about various cases of cybersecurity threats, such as payment fraud. Due to the increasing cases of fraudulent payments, companies need to implement better online payment practices. It’s one of the reasons why switching to virtual payment cards is safer and more secure. Moreover, it’s possible since you can pre-configure a specific maximum spending limit.
With virtual payment cards, you can terminate the account. It may be a wise move to make if there’s a possible data breach. Every transaction involving virtual payment cards has a one-time use bank number for every payment instead of utilizing the same bank numbers for third parties all the time.
3. Streamlines E-Commerce Processes
Another advantage is that they work around the clock, making it easier to do various transactions, including international ones. It’s one of the reasons it stands out from traditional banks.
Going to a physical branch can be a hassle. But with virtual payment cards, everything becomes more efficient. It only takes a few clicks on a computer or phone to work out transactions online to ensure all business operations flow efficiently. Virtual payment cards eliminate the need for cumbersome paperwork and manual errors.
4. Cuts Down On Unnecessary Company Spending
A virtual payment card may be worth considering to limit company spending. The feature of the card that allows setting spending limits will ensure employees have boundaries when it comes to spending. Depending on the card, an employee can receive notifications if they have reached the set limit or will be declined based on the controls in place. This allows you to maintain a strong hold on the budget during payments and lets your employees know how much they have to spend.
5. Improves Employee Trust And Independence
Switching to virtual payment cards has several benefits. This includes enabling businesses to empower their workforce, building trust, enhancing overall transparency, and increasing efficiency. It’s one way to authorize and monitor employee spending in real time via a computer or mobile application. This way, you can provide your employees with a better level of control while at the same time boosting their confidence to do their best.
6. Earns Cash-Back Rebates For Transactions
When a company makes payments to vendors, it allows them to earn cash-back rebates. Generally, it’s considered free money that requires no effort to obtain. As your company uses virtual payment cards, the overall rebate grows and eventually accumulates a decent sum you can reinvest.
As business operations continue to evolve and become more streamlined in delivering efficiency, your company must maintain an edge, which may be possible by switching to virtual payment cards. Working with the right provider will ensure the efficiency of your business. With the benefits a virtual payment card offers, the transition may be worth it to boost efficiency and streamline operations to a whole new level.