August 8, 2022 Last updated August 8th, 2022 196 Reads share

4 Surprising Benefits of Virtual Credit Cards for Businesses

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Virtual credit cards are one of the emerging trends that are shaping the credit card industry. With the uprising domination of contactless payments, virtual credit cards usher their advantages to sustain the growth of this hegemony. 

Is there any worthiness at the back of this hype? Let’s find out.

 

What is a Virtual Credit Card?

Before you learn about how to choose the best virtual credit card, what makes a virtual credit card good, its benefits, and other important things that you need to know about the subject—first, you must be clear about what a virtual credit card is and how it works.

A virtual credit card is an add-on card issued on your pre-existing primary credit cards.

One can issue a virtual credit card using a net banking facility without hassle. It is a matter of a few taps on your digital screen. 

Once you place a request for virtual credit card generation, you get a randomly induced card number linked to your actual bank account. To your online merchants, it will look indistinguishable from the existing credit card. 

At once, a virtual credit card is for one-time use only for a single online transaction, and the maximum validity is 48 hours. It works for online transactions only. 

All details associated with a virtual credit card, like, card number, CVV, and expiry date, are unique for every other issuance. 

There are scores of surprising benefits of virtual credit cards for businesses. Let’s discuss four of them.

Virtual Credit Cards promote enhanced fraud protection in the business.

Paying big online merchants doesn’t make you worry because of their credibility. But small merchants keep you restless with their probability of being iffy.  

Virtual credit cards ensure zero leakage of your bank details for every transaction. 

As 16 digits of the virtual cards are unique for every issuance, you always get one-time use bank credentials. You can easily share your virtual credit card number, CVV, and expiry date with a third party and save yourself from sharing the actual bank account details.

The maximum validity is 48 hours for every virtual credit card payment. Set spending limits vowed on virtual credit cards will keep you away from the possibility of overspending with or without notorious influence. 

It also gives you more flexibility by bestowing a less hassle card cancellation process. 

On any suspicion of fraudulent activity on the virtual cards, you can immediately freeze or terminate the payment from anywhere with the net banking facility. And for new virtual credit card generation, there is no waiting period.

Virtual Credit Cards help in spending management for businesses.

For large companies, keeping track of their spending is a hefty task, and they tend to form a department to scrutinize such matters. Spending management is a primary nexus for small and medium businesses too. 

And to the rescue, virtual credit card surfaces as the potential solution in that respect. 

For transaction purposes, employees use multiple business cards to pay several merchants. A virtual credit card will cut down the dubiety around the utilization of the funds

Business owners can perform simple and rational management by allocating different cards for each team or project. So in the future, virtual cards issued on specified cards will allow greater visibility and encourage transparency with easy journaling. 

You can generate unlimited virtual credit cards that permit a business to load a virtual credit card for every business transaction. It ushers quick accessibility to digitally stored data regarding spending. 

As a virtual credit card is for one-time use, it comes up with a unique card number and a set spending limit. 

Virtual cards come up with more levels of control than physical credit cards. 

Virtual Credit Cards are more convenient for businesses

Unlike traditional cards, there is zero cost leveraged on the issuance of virtual credit cards. If you are a primary cardholder, you can get a virtual credit card for free, and that too, without any paperwork. 

A virtual credit card may be available to non-credit cardholders on their existing debit card or account. And the businesses can stack a selected amount from their bank balance to transfer directly into the virtual cards.

Instead of any fixed spending limits proclaimed by the bank, users can customize their spending limits. And contrary to traditional banks, virtual operations and transactions toil 24/7. 

In the case of jiggery-pokery, you can instantly halt the further activity of the virtual card without actually closing your bank account or hindering any other bank workings. 

And in any circumstances, if fraud occurs on your primary banking card, you can continue paying through virtual cards without holding for up to 7-14 business days for a replacement. 

Virtual Credit Card will boost the reliability of E-commerce businesses.

The biggest threat to the E-commerce industry is the mounting indulgence of cheating in online transactions. Using virtual credit card services for e-commerce business operations has a lot of benefits for online retailers.

Virtual cards are of great aid for retailers following the drop shipping method. Retailers can use drop shipping by virtual cards to make secure transactions between themselves and the retailer from which they source their orders.

Since you have specific virtual card details generated distinctly for each payment, an added level of security comes alongside.

But all virtual credit cards do not function the same. Some specifics vary for each virtual card. So, how to choose the best business virtual credit card?

Businesses must analyze their requirements and the specific offered by different virtual cards. 

Issuance policy, spending limits, credibility, and integration capability with payment tools are some chief areas to look out for before making up your mind. 

 

Conclusion

The digital presence of the market and customers are giving unprecedented rise in online transactions. The ongoing trends are shoving relevant authorities to introduce different alternatives to digital payments. 

Virtual credit card is one of these alternatives imparting a significant facility for B2B businesses. The upsurging interest of corporates in virtual cards is making experts believe that the global value of virtual card transactions will increase by $6.8 trillion by 2026. 

Strategic spending and convenient security make virtual cards a crucial segment of banking. Amid the internet of things, virtual credit cards present an optimistic standing to look forward to.

Kapil Sharma

Kapil Sharma

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