Paper currency is almost a thing of the past, and physical credit cards are heading in the same direction. Unlimited virtual cards like those offered by Divvy (https://getdivvy.com/) allow heightened security and greater control of expenditures for businesses of any size. If you’re still unsure about how virtual cards fit into your business flow, here’s a guide to the benefits of this new payment technology.
What are virtual cards?
Virtual cards work just like credit cards, except they only exist online. Each virtual card has the same details one would assign to a credit card:
- 16-digit card number
- Expiration date
- 3-digit CVV code
The main difference is that users can generate a new digital card for each transaction and safeguard their true financial information, meaning that even in the event of a data breach, your bank account is safe.
Businesses of any size benefit from virtual cards, but small businesses often have smaller margins and much to gain from reducing expenses. Small business owners can save much-needed funds by digitizing many aspects of their business, including implementing virtual cards.
Business owners can easily create and monitor multiple virtual cards under a single account. Using a virtual card-based system requires the same qualifications as acquiring a line of credit for a physical card. Still, approval is instant, and users can generate cards right away.
Reduce the risk of fraud
A virtual card’s details are only accessible through a secure login. Because there is no physical copy of the card’s details that can be lost or taken by someone other than the cardholder, the potential for fraudulent activity is drastically lower than that of a regular credit card.
Prevent unwanted recurring charges
In the digital age, it’s far too easy to lose track of recurring expenses or mistake a subscription-based service for a one-time purchase. When you give an online vendor your card details, they’re able to keep your information and continue charging you.
You can instantly create details for an unlimited number of virtual cards and assign them exactly enough funds for a single purchase by using virtual card services. With a virtual card, you’re able to apply any limit you choose so that even after giving a vendor card details for a recurring service, they can only continue to charge you until the limit for that card is reached.
Disburse funds to employees
Virtual cards also make it easier to allocate funds to your employees. Instead of waiting for a new business credit card to arrive in the mail, business owners can instantaneously create a new card and share the details with any employee they choose.
Both long-term employees and independent freelance workers can be assigned virtual cards, and having all of the cards under a single account makes it easy to keep track of who’s able to spend what. With one click of a button, any virtual card can be suspended or terminated at any time by the business owner.
Hold cardholders accountable
As a business owner, monitoring employees’ spending is simpler than ever when using virtual cards. Credit limits for each virtual card can be raised or lowered based on transaction history and trends in expenditure.
Using virtual cards for the expenses required to run your business is more convenient, secure, and easier to control than any physical credit card. There are plenty of opportunities to start using a virtual card-based system, and it’s easy to find options that are best suited to your needs.