What Is A Corporate Virtual Card? Benefits For Modern Business Payments

We live in a digital world where companies no longer have physical cards. Everything is done online with just a few clicks, which means no plastic card, and everything goes through an app, making it much more convenient and accessible.

Virtual corporate cards are very popular at the moment, especially for companies that frequently make cross-border transactions. They make payments smoother and easier.

But if we look deeper, we can find that these digital payment solutions are revolutionizing how companies handle expenses, and they go from small companies to global giants.

So, instead of entering a bunch of numbers from your physical credit card, companies use an app and have their virtual credit cards stored in their mobile phones, allowing them to pay online and at a POS terminal using their device.

Since so many companies are already adopting this trend, it must mean that corporate virtual cards offer certain benefits, right? Let’s find out.

What Is A Corporate Virtual Card?

As the name suggests, they are virtual, meaning you don’t have to carry them in your wallet. They are just like regular credit or debit cards, but they live in the cloud, which often connects to and stores them on a device like a smartphone.

Virtual cards also have a 16-digit number, like regular credit cards, an expiration date, and a security code. Banks, fintech companies like Mastercard, or online virtual payment platforms like Genome issue them.

You must go through the same process as with physical cards to obtain your corporate virtual card.

In some cases, especially with virtual payment platforms, the process is much easier. All you have to do is add your company details and tie the cards to your company’s account. They can be single-use or set for recurring payments.

You can use them immediately upon approval, meaning you don’t have to wait for the company to mail your physical card.

This makes the entire process more convenient. Since virtual corporate cards usually offer financial platforms in the fintech space, the process is smooth and gives you access to many other things. Like account overview, spending limits, etc., all through the app.

Fraud-Proofing Your Finances

One of the biggest benefits of virtual cards is that companies feel safer and better protected against fraud. Each card can be tailored for a single purchase or vendor and has a unique number. Which makes it useless to hackers if stolen.

Unlike physical cards, which the wrong hands can swipe, virtual cards also have spending limits, merchant restrictions, two-factor authentication for every transaction, and much more.

You don’t risk losing your wallet and card in a restaurant. Since these cards are safely stored on your phone. Even if you lose your phone, these apps make it difficult for thieves to access your data.

Streamlined Payments

Another benefit of virtual corporate cards, and probably one of the biggest reasons companies transition to them, is that they expedite payments.

Virtual cards come with plenty of customization options, where you can set automated invoicing, expense tracking, syncing directly with accounting software, or have an auto-investment plan.

In other words, they can automate your payments and save you time. You can generate a card for the exact invoice amount and set the date. After that, you can forget about it as it happens automatically.

Faster And Smarter Payments

Virtual cards are a cash flow turbocharger. Traditional B2B payments, like checks, can take days to settle, but virtual card transactions often clear the same day.

This speed boosts your suppliers’ cash flow, earning you goodwill and sometimes discounts for prompt payment.

Suppliers also love the detailed remittance data, which makes their bookkeeping a snap. Virtual cards mean better budget control for your business—you set limits upfront, avoiding surprise overruns.

A construction firm paying subcontractors can issue a virtual card for each job, ensuring funds are spent correctly.

Flexibility For The Modern World

Virtual cards are the Swiss Army knife of payments, built for today’s global, digital economy.

Need to pay for a SaaS subscription, a team’s travel, or a one-off vendor? Generate a card on the spot, no matter where you are.

Some cards even handle real-time currency conversion for international suppliers, avoiding hefty forex fees.

They’re perfect for remote teams—issue a card to an employee in Tokyo for a conference, set a $1,000 limit, and do it via your phone.

Mobile wallet integration means you can tap-to-pay in stores, too. In 2024, many B2B payments will use virtual cards because they’re versatile.

Improved Accountability  

You might be thinking that what a corporate virtual card has to do with accountability, but it does have a certain degree of accountability.

With a virtual card, you won’t have to track down any mystery payments on your card, since you don’t have a physical card.

All your expenses will be properly categorized, labeled, and even neatly organized manner. So with a virtual card you will get a proper visibility of your finances, business offers, giving you better accountability and transparency of your account.

Improved Security

The biggest advantage that virtual cards have over physical cards are that they provide a higher degree of security and safety.

Since you don’t have a physical card on your person, the risk of getting it stolen or losing lost is at a minimum.

Along with this, you can freeze, delete, or cancel your card anytime you want without any problem, if you see a breach of security or cyber fraud.

With virtual cards, like any other digital payment solution can always be subject to illicit activities, but nonetheless, they are still considered a safer payment solution.

So with a virtual card, you are able to stop any and every fraudulent behavior revolving around physical cards.

So, if you want a more convenient solution that will streamline your company’s finances and make the process more secure, you should consider getting a virtual corporate card.

It is best to go digital and let go of the older ways of life to have a more stable and carefree life. So now that you know what a corporate virtual card is, you can easily convert your lifestyle according to that.

Read Also:

• The Future Of Business Cards: Are Digital Business Cards The Way Of The Future?
• 8 Different Payment Methods You May Encounter in the NZ Gig Economy