Should Your Business Use Virtual Cards?
What comes to mind when you think of virtual cards? Prepaid cards hanging up next to the cash register in your favorite grocery store chain? Think again.
Virtual cards operate like typical debit or credit cards, yet they offer far more benefits for your small business. They have a 16-digit number, expiration date, and a CVV just like a physical card, but are good for only one transaction and a specific dollar amount.
Not quite sure how it works? With virtual cards, a vendor will send your company an invoice and you provide them with a computer-generated card number. If they try to process the card for anything more than the dollar amount, the transaction will be declined.
While not designed to replace your physical debit or credit cards, virtual cards simply cut out the costly and complicated check or ACH payment process by putting everything online in a secure and easy-to-follow process.
As world is depending more and more on technology, it might be the right time to start using this convenient payment option. After all, virtual card are growing at 20 percent annually. Not yet convinced? Check out the top three benefits of virtual cards below.
1. They are easy to use
Does it sometime feel that you spend all your time dealing with complex invoice processing and don’t have enough time for other areas of your small business? You shouldn’t have to settle for less.
With virtual cards, you can send out payments to vendors faster, eliminate the hassle of paper-based payments, and streamline your accounts payable processes. Everyone wins, right? It’s as simple as that.
2. Never worry about exposed banking information again
Do you worry about someone stealing your company’s bank account information and racking up fraudulent charges? Maybe you know a fellow small business owner that is dealing with the fallout from a lost or stolen card?
One of the best benefits of virtual cards is that you no longer have to reveal or expose your sensitive banking information to potential criminals. Numbers are randomly generated for a one-time transaction with a specified amount and time frame, eliminating the chance for lost or stolen checks or bank information.
Also, if your vendor’s website gets hacked, your virtual card numbers will be useless to thieves, keeping your company’s accounts safe. With virtual cards, your vendors will appreciate your straightforward approach to payment security, and you’ll never want to switch back to outdated payment methods.
3. Reduce overhead costs and receive potential rebates on transactions
Virtual cards help you reduce payment processing costs and generate revenue through rebates for your accounts payable spending. As an extra bonus, you won’t have to waste gas driving to the post office to mail checks and can avoid costly postage fees.
The amount of rebates you receive is tied to your payment volume. Basically, the more you use virtual cards, the more you can get back. You have to pay your vendors regardless, so why not try to cut down overhead costs in the process?
It might be time start using virtual cards at your small business. After all, replacing checks with this payment option will only make your life easier, reduce security risks, and benefit your bottom line. To get started, contact our team at Paybacks to learn more.
Sign up by April 26th and receive 12-months of gold tier (.65% rebate) for free!
Use Promo Code: APRIL
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