The virtual business credit card is the latest iteration in the ever evolving credit card family. This development in the credit card world is quickly becoming a popular tool in proprietary expense management systems. The technologically advanced cousin of the plastic PIN and chip cards is seen to be providing even more advantages for business users. In this article we’ll detail 4 benefits of the virtual business credit card.
1. Added Security
Credit cards are known for their security even if they’ve been compromised - you typically won’t be liable for fraudulent purchases. However, because virtual credit cards randomly generate card numbers related to your account without actually carrying all the accounts details, fraudulent activity doesn’t affect the entire account. A single compromised virtual card won’t have you scrambling to recall related cards or cause you to limit purchases until the dishonest charges have been reversed.
2. Administrative Control
Virtual credit card systems allow administrators to set a variety of controls over a wide array of issued cards. An administrator can set customized spending limits, create approved merchant lists and purchase categories, apply expiration dates ranging from single use to yearlong and create approval processes at various steps in the transaction. Virtual cards can be used for online transactions, purchases made over the phone or by standing order.
3. Streamlined Accounting
With a virtual business credit card, invoice data can be included prior to the transaction which results in simplified reconciliation. Transactions can be viewed instantaneously online and immediately associated with the purchasing party, the supplier and other relevant groups. Using virtual cards removes the need for manual expense reconciliation creating a more efficient expense management system.
4. Cash Rebates
Emburse provides a virtual business credit card system featuring a cash rebate program based on purchase volumes. The more the cards are used, the higher the percentage of cash back received. Considering it’s been estimated that small businesses charge over $4.25 billion a year, the case for participating in a cash rebate system is arguably strong.