Using virtual credit cards for business purchases can help you manage your professional expenses easily. These cards come with a single-use number for each transaction and give you:
- Access to credit for boosting business cash flow
- More security against fraud
- Flexibility in usage
For example, say your business has a big order, and you need funds to pay for raw materials. You can opt for a virtual card, as it will give you immediate access to funds once you get approval. It doesn’t require you to wait for the physical card to be delivered to you.
Why Choose Such Cards for Business Transactions
- Enhance cash flow: Virtual credit cards help you make rapid payments to your suppliers and other vendors while helping you make the most of the interest-free period. This will help you use your funds for the most appropriate business expenses.
- Add to convenience: You can generate the card details with a tap and incorporating its use into your payment workflow for domestic and international transactions is both free and convenient. It is also easy to apply for and get once you meet the eligibility criteria of the issuing company.
- Allow you to set specific limits: You can rely on a virtual credit card to reduce misuse and manage business expenditure across teams, as you can set limits regarding:
- Payments to specific businesses, merchants or vendors
- Payment amounts
- Number of times it is used
- Reduce your risk exposure: The elevated security of such cards allows you to carry out transactions without sharing any information, protecting you from data breaches and cyberattacks.
Usually, single-use virtual cards are generated keeping in mind:
- A specific amount
- An exact date
- Relevant payee details
Thus, scammers cannot use the information.
- Reduce chances of theft: Physical credit cards can get stolen or lost, which can lead to unauthorised use. Though you can report these transactions and benefit from zero liability, this can create inconvenience, especially if you have to block the card. Virtual cards eliminate such issues and keep your business purchases running smoothly.
- Make tracking transactions easier: Data capture related to each purchase request is better with such cards, as you can integrate them into your accounting or expense management software.
- Increase efficiency: This e-payment mode reduces the work related to paper-based transaction processes. All you or your team members need to do is generate a unique virtual number on demand.
- Sends alerts on an unauthorised transaction: Since you get real-time notifications for every transaction, you can raise a query if you notice any unauthorised transactions. These cards usually have a dedicated team of customer support executives to help with queries.
Drawbacks of Virtual Credit Cards
- These cards cannot be used at physical outlets for purchases
- They may not include perks related to a physical card, like access to airport lounges and more, where you may need to carry and show your card for admittance
- Virtual card comes with extended security, which can make integration complex, and may require you to train employees before using them
- These cards are based on digital platforms or online business ecosystems, so their usage may be affected by technical failures or cyberattacks
- Their integration for business expenses may require you to invest in a software setup
Selecting a virtual credit card enables you to enjoy several benefits for your business needs and streamline your transactions. The One Credit Card can be an excellent choice if you’re looking for a virtual card along with a physical card.Â
You can access several benefits like 5X reward points on your top two spending categories each month, and a range of deals on travel and more. What’s more, its full-stack mobile app helps you set spending limits and stick to a budget. Apply online to explore its benefits!
Read Also: All You Need to Know About Latest Trends in the Credit Card Industry
