The virtual card has the same information as a regular physical card, such as card number, expiration date, and cardholder’s name, the only difference being that there are no plastic media.
The virtual card has a 16-digit card number and is used in the same way as a plastic physical card. A physical card is just a carrier with 16 digits and you need to carry it with you in order to use it.
In addition to the card number, the virtual card has an expiration date, a three-digit CVV code, spending limits, and other features. It can be used to pay for purchases online, on mobile apps, and at merchants where you can directly enter your card information to pay. With a virtual card, there is a risk of theft with physical card transactions or the days when employees rely on their own personal card to pay for office materials Gone are the days.
According to a 2018 survey by JPMorgan Chase, nearly 78% of companies have suffered payment fraud in a year, with the most aggressive forms of fraud being checks, wire transfers, and company cards.
However, there is a way to protect you and your company from fraud. Unlike checks and ACH payments, using a virtual card with a disposable card number does not require sharing banking information, and it does not have to share credit card information. Set up a virtual card with the amount and time of the payment needed and send it to the payee, so even if the card information is stolen by a hacker, they can’t Spend the amount in the virtual card.
Nevertheless, most employees are required to purchase some production materials and, according to the survey, only about 20% of employees own the company's Credit cards. In this case, the virtual card becomes an excellent alternative for company procurement or personal use. This is because it allows the cardholder (company) to conveniently equip their employees with temporary virtual credit cards to use when needed.
Cardholders can create and distribute any number of virtual cards of any amount through the card issuance platform and can modify or cancel the virtual cards they have created at any time. Moreover, unlike physical cards, virtual cards do not need to be sent or dispatched by post. There is no need to worry about the bank coming to your doorstep to collect your payment, because you can only use the limited amount of your virtual card, and you can’t overdraw it.
Enhanced visibility of expenditures
There is no doubt that when multiple people share a company credit card, there are often ambiguous or inadmissible accounts. Make material purchases by using virtual cards. Employees can make purchases from anywhere and the company can cancel shared credit cards that have been used multiple times. The maximum amount that can be paid can be set in advance before using the virtual card, not after a loss has occurred. In addition, every transaction on a virtual card can be seen directly in the system details of the card-issuing platform.
To make things even better, in addition to the tremendous control and visibility generated over virtual card transactions, a company or individual can receive points, or cashback or discounts, generated by these transactions!