Virtual corporate cards: How are they changing finances for businesses?

What are virtual corporate cards?

A virtual corporate card is similar to a regular corporate card which is linked to a business’ budget. However, they are used virtually as opposed to physically. 

Employees can use this method to make payments without using their personal cards, cash, or even a physical card. The virtual cards are kept in a digital wallet and can be added to any tech device, like your mobile phone.

In recent years these types of cards have become very popular with businesses, as the card details are protected, unlike a physical card which is openly exposed to anyone. They are very convenient to create and can help maintain budgets to assess spending control.

What are the benefits of using virtual corporate cards?

Streamlining

When using virtual cards, members of a business’s financial team can streamline their workload as they will no longer have to spend a lengthy amount of time sorting out expenses and paperwork. This means they can direct their focus towards other responsibilities like financial planning.

Avoiding human error

When finances are completed electronically this avoids the vulnerability towards human error. Small mistakes can be avoided, therefore making the process more efficient and reliable.

Improved accountability

When all payment information is stored online and easily accessible, it means finance teams will no longer have to request receipts or try and source mystery payments. All expenses will be clearly labelled and categorized, which will improve transparency and accountability.

Increased security

Luckily, it’s impossible for someone to steal this kind of card since they are stored online. Additionally, those in control of the accounts can cancel, freeze or delete a card at any point if there are any concerns security might be breached. Although using a virtual card cannot completely eliminate the possibility of fraudulent activities, on the whole, they are safer than other payment methods.

Spend controls

 All companies want to reduce spend and choose more cost-effective methods of payment, as it’s important to budget accordingly and cut down on any unnecessary spending. 

When using a physical card, it can be hard to identify how many times it has been used, where it’s been used and how much has been spent. Whereas a virtual corporate card allows the business to set up cards for each expense and allocate specific budgets. These budgets cannot be exceeded, and you can receive notifications that allow you to see how much is remaining in the balance.

Conclusion

With all of these benefits in mind, by using a virtual corporate card you can not only improve the security of your business’ finances, but also accountability. In turn, this will make life easier for finance managers as well as for those who are using the cards on a regular basis. 

Using a virtual corporate card will allow you to stay ahead of your business spend, and consistently adapt your expenses to be more cost-efficient for the company.