What are Virtual Credit Cards?
The landscape of B2B payments is changing more rapidly than ever and more vendors are accepting credit card payments. A virtual credit card (VCC) is a randomly generated 16-digit or 15-digit number with its own expiration date and CVV that is associated with your actual credit card account. These VCCs allow you to pay each of your vendor payments with a unique card number that has a charge limit set to the payment amount.
Control exactly how much your vendors are able to charge
Companies gain more control with single-issue virtual cards. Each virtual credit card is issued to a specific vendor for a specific dollar amount. The virtual card payments are then processed by the vendor in essentially the same way as a traditional credit or pay card payment, only without a physical card or open line of credit being provided.
There is less risk of fraud through single-use virtual card numbers
Virtual credit cards provide much more security than physical credit cards. VCCs allow you to pre-set the actual payment dollar amount and tie that payment to the invoices you are paying. The 15 or 16-digit card number is unique for each payment and is for single use only.
Since the card is not physical, it cannot be stolen or re-used. The card also expires once the maximum dollar amount has been spent.
Virtual cards provide improved payment and remittance data
With AP Automation tools that have virtual card integrations, paying your vendors by card is easier than ever. Detailed payment information is included with each VCC payment that is sent to your vendors.
Earn cash back on your B2B payments
Cards provide easy access to working capital and offer rewards like cash back or points. Many companies appreciate that cards are a better electronic payment option due to these benefits. The question then becomes: how do you integrate a successful card program into your accounts payable process?
Generally, businesses have to make card processes work within their pre-existing AP infrastructure, which usually means tedious manual work of sending static card numbers over fax or email to vendors and hoping they only charge what your business permits.
With Virtual Credit Cards integrated into an AP Automation system, your company can easily leverage card programs while feeling confident in sending one-time use numbers with predetermined limits.
Virtual credit cards provide faster payments to suppliers
Instead of waiting a couple of days for an ACH payment, or up to a week to receive checks, your suppliers will receive their credit card payment information immediately after you complete the payment. With VCCs, less money is left “in transit” between you and your suppliers.
Virtual card creation is available for American Express credit card users. Not only do we make it easy to start sending Virtual Credit Cards day 1 – but we help analyze your vendor list and find who will accept Virtual Credit Cards.
With Rewardworks, you can create virtual credit cards that are one-time use or reloadable. Reloadable virtual credit cards a great for subscriptions or vendors that require cards on file.