There is a constant fear about handing over your credit card number when you're shopping online. However, there's a security option you might not know about: virtual credit cards. The introduction of these chip credit cards has made our financial information a little more secure. There's a world of virtual credit cards out there that can add another layer of security to your online endeavours. These virtual credit cards are also beneficial for individuals who are involved in purchasing or making financial decisions. The payment industry is moving increasingly toward the electronification of payments which makes the life of business owners easier and it is important to understand this growing trend. Read on for a quick look at what you need to know about virtual credit cards.
What are Virtual Credit Cards?Virtual credit cards are unique credit card numbers that allow you to transact on your main credit card account without using or exposing your main credit card account number. Depending on the issuer, you may be able to set a maximum charge for the virtual number, further protecting your transaction. And typically you can set it to expire in anywhere up to a year from its creation date.
Benefits of Virtual Credit Cards
- Reduces costs
- Improves cash flow
- Increases working capital
- Decreases risks
- Streamlines payment process
Checklist to Evaluate if Virtual Credit Card Program would Benefit Your OrganizationVirtual credit cards will make payment processing easier for your business. They allow you to provide the best and most reliable merchant services to all of your customers and remain competitive in your industry. Hence your business will have more control over its credit cards when you use virtual as opposed to corporate cards.
- Are most of your payments made through checks?
- Do you print and mail checks in-house?
- Is there a loss of checks in your organization?
- Has there been an attempted or actual fraud in your organization?
- Do you have periodic spendings?
- Do you yourself initiate your payment transactions?
- Do you manually provide information to your suppliers?
- Is your organization looking for new revenue streams?
Characteristics of an Ideal Virtual Credit Card PartnerIf you are trusting your transaction with a third party, you must sure of drastically reducing frauds, increasing your bottom line as well as automating your AP process. Also, finding the right provider to help you build a best-in-class virtual credit is a tough job to conduct. Here are some few important things to consider while selecting a virtual credit card partner.
- Find a provider whose solution integrates with your existing ERP or accounting system
- Your provider should be able to provide transparent reporting on your transactions
- Consider a provider that avails a dedicated implementation team to be on top of the process
- Providers should have dedicated in-house vendor enrollment team
- Knowthe process for vendor enrollment after the initial campaign
- Good reports should be provided on a regular basis and you should have access to them at all times
Key Takeaways from the Whitepaper "Everything You Need to Know About Virtual Credit Cards":
- Virtual credit cards are intended to make information more secure
- Invest in a partner that is focused on helping you build a sustainable epayables program
- Your partners should help you earn as many rebates possible by qualifying your transactions
- Benefits of a virtual credit card are equal to a single user as they are for an entire organization