There have always been credit cards for business, but they weren’t much different than regular cards. With the recent advancements in the past few years, that’s started to change. Companies now have virtual credit cards to consider.
The virtual card space has grown a lot, too. Believe it or not, virtual card spending is expected to exceed $2 trillion in 2022.
The question is, will a virtual card be beneficial for your company? Keep reading to learn what is a virtual card and the benefits they bring.
What Is a Virtual Card
Company credit cards have been a thing for a while. You signed up for a company account and distributed cards to your employees. However, you always had more of a risk of fraud since employees can lose those cards.
Virtual credit cards work differently. You get no physical card with a virtual card. It’s a temporary number you can remove at any time. Because of that, it’s easy to create private cards with limits that you can use for your business purposes.
How Are Virtual Cards Useful?
Now that you know what virtual credit cards are, the question is, why are they useful? Find out below.
Set Spending Limits
Spending limits are one of the best features of a virtual credit card. You don’t have to trust that your employees don’t go over your credit limit. You can set a fixed amount of money available for the card.
As a result, your team can only focus on purchases that matter the most. People will be smarter with their spending and only purchase the most important work items.
It isn’t good when your credit card gets stolen. You have to contact the credit card company, acquire new cards, and change your account numbers on all your vendors. The same isn’t true with virtual cards.
You can use a unique card for all your B2B payments. You can generate unlimited credit card numbers, so you don’t have to use one card twice. If a vendor ever gets hacked, you don’t have to worry about your other compromised accounts.
Make sure you check more on virtual cards now to learn more about how a virtual credit card increases safety.
It isn’t easy to see who buys what when you have a single credit card. Sure, you can get individual cards for every employee. However, you never know what kind of fees to expect when you go down that route.
You can more easily track spending with virtual credit cards. You don’t have nearly as many fees, so it doesn’t matter how many virtual numbers you generate. You can keep track of who uses which number and see how much money your employees spend.
Invest in a Virtual Credit Card Today
Virtual credit cards are newer to the market, so there still isn’t much expertise talking about best practices. However, now that you know what is a virtual card, you have what you need to decide if they’re suitable for your business. Get your first corporate card today to see the benefits virtual cards bring for yourself.
Are you looking for more business tips that will help make managing your company’s finances easier? Head back to the blog to check out the latest posts.