How to Choose the Best Virtual Credit Card for Your Business

Virtual corporate cards can be an excellent way to control company spending.

Many businesses are shifting to virtual forms of payments to enjoy better accountability and transparency. Entrepreneurs can choose from several virtual cards available in the market with varying features. But how do you ensure you choose the best virtual corporate card for your business?

What are virtual credit cards for business, and how do they work?

A virtual card is essentially the same as its plastic counterpart, without the plastic. Virtual cards usually act as prepaid debit cards. The user loads a selected amount from their balance to be transferred directly onto the card. 

As soon as you click the generate button, a card will be created with a random 16-digit card number, CVV/CVC2 code, and an expiry date that is selected by the cardholder. 

After the user designs and creates the card for their specific needs, the virtual card is immediately available for online purchases, phone orders, and subscriptions.

The benefits of virtual credit cards for your business

The short answer is: getting full visibility and control over your payments, preventing fraud and boosting security.

First, virtual cards have the option of being single-use. Once the transaction is concluded the card will expire, and become unable to make subsequent purchases. 

Second, the randomly generated card number and limited information displayed on the card eliminates the possibility of storing card details to be used for future payments. 

Third, a virtual corporate card can be canceled with the click of a button. Unlike physical cards, virtual cards do not display the account number and are not connected to a bank account. As a result, a card can be canceled or suspended without the need to suspend the whole account — which can be an expensive and time-consuming operation.

Additional benefits include:

Keeping track of your expenses

In large companies, it is difficult to keep track of spending. With multiple business cards passing from employee to employee it can become unclear as to the purpose of each transaction, and who made it. Many businesses have to employ teams to check and approve purchases. This can be time-costly and an expensive process. 

The beauty of virtual cards is that each card is generated for a specific transaction. In a sense, you are logging the expense before the transaction instead of chasing up on the purchase after it occurs. Cards can be generated and shared with employees on a when and needed basis. Not only does this reduce the chances of fraud, it paints a clear picture of how much, where, and who made a purchase. 

Easy to navigate internal controls 

Virtual corporate cards for businesses provide flexible controls on a wide range of features. The account holder can easily select:

• Amount per period: cards can be limited to a set amount within a specific period (great for subscriptions!)
• Multi-use or one-time use: users can choose whether you would like the card to be for one-time use, or for multiple transactions
• Suspend or cancel a card at any time: The card can be suspended and reactivated when needed so that businesses don’t need to be afraid from unauthorized charges
• Authorizations: via multi-level authentication and hashed keys cards will be securely generated to the account owner

The drawbacks of traditional credit cards

The traditional plastic credit card is vulnerable to fraud, both from employees and scammers. Business cards not only show the information needed to make online and offline purchases but also display sensitive information such as the account number. An employee can use business cards for personal expenditure in numerous ways. As the card can be passed from one employee to the next around the office, it is very difficult to have complete oversight of the cards. Employees can use the card, or store the details of the card, for personal transactions that cost businesses thousands of dollars each year       

Additionally, the majority of business credit cards were not built with businesses in mind. They’re essentially personal credit cards that are used by businesses. As we mentioned before, this leaves the cards open to fraudsters and scammers, who can exploit the information exposed on the card. As most business cards are linked to one central bank account, a misplaced or stolen card may put the entire account at risk before noticing the card is missing or being abused. 

How to choose the best virtual credit card

Businesses need to keep an eye for a few card-specific features and functions to ensure they get the best card. First, determine your needs so you can select the right virtual payment option for your business. Then you can compare features to find the best fit for your company.

Some features to consider include:

Ability to Issue Unlimited Cards

Your virtual corporate card should meet the growing needs of your business. You should be able to issue as many cards for as many employees or payments as you want. Along with that, look for a card that lets you issue unlimited cards for free.

Otherwise, your expenses can add up over time.

Spending Controls

Virtual cards should come with robust controls to manage your budget. You should be able to set spending limits or vendor locks to prevent fraud and overspending.

In addition, the best virtual corporate card should also let you:

• Set card behaviors like one or two-time use
• Delete or freeze cards and accounts
• Define expiry dates

Always choose a card that lets you stay within your budget with the least effort.

Real-Time Spending Visibility

According to a PwC survey, businesses lost $42 billion in 2020 due to fraud. One of the biggest causes for this is poor visibility into company expenses and lack of accountability.

A good virtual corporate card can help you overcome fraud with real-time spending visibility. You get an instant notification every time an employee uses their card to make a payment or buy something. Along with that, you get additional information like the name of the approver and accompanying receipts.

So, always ensure your virtual card provides real-time visibility.

Easy Integrations

Your business may use a range of accounting and payment tools. Your virtual card should easily integrate with all these tools for seamless operability and automation. Otherwise, you will have to enter data across several tools and lose out on efficiency.

So, make sure your virtual corporate card has an API for easy integration. Alternatively, your card’s support team should be able to help you create a connected system.

Credibility

Virtual corporate cards are a financial tool. Therefore, you should always be cautious with what you choose. Going with a shady provider can land you in trouble or even result in a financial loss.

Therefore, always check the credibility of the provider when you choose a virtual card. Look for seals of trust like Visa or MasterCard to ensure nothing goes wrong.

Affordable Fees

Even the best virtual card can come with high fees. You may also have to pay a fee every time you issue a card or make a payment. So, check the fees before you join hands with your provider. You should take a good look at their pricing before ordering your card.

Rewards & cash back

Many cards offer additional incentives like rewards programs and cash back. Rewards points can be redeemed for necessary business expenses or put towards the balance on your virtual cards, while cash back is offered at a percentage of every dollar you spend.

While these are nice bonuses, ensure that generous rewards and cash back offers are not being advertised to hide weaknesses in other areas.

Ease of use

If the finance team, budget owners and employees are all going to be using virtual cards and responsible for submitting the accompanying receipts, ensure that the virtual card you select has an easy-to-learn and easy-to-use platform.

Features that make platforms easy can include notifications, automated workflows, mobile app capabilities and an intuitive user interface.

Security

Ensure that the company issuing your virtual cards takes security seriously. What credentials do they have? What security features do they offer? How simple and fast is it to cancel cards if needed? These are questions you’ll want to get answers to before making a final decision.

Customer support

Choose a virtual card provider that will work with you and your team to create the best experience possible. Customer support should be able to help you implement a smooth onboarding, and be available and easy to get in touch with throughout your entire time as a customer. If customer support isn’t available after 5 p.m. but many of your employees use their virtual cards to pay for client dinners and meals on business trips, it probably won’t be a good fit.

Acceptance

Finally, pick a virtual card that will be accepted widely for all of your business needs. Consider how much use will be required internationally where not all credit cards will be accepted, while also ensuring that they can be used in the local areas your business operates.

Try Mesh Virtual Corporate Card

Credit cards still leave room for fraud and can invite several risks. Your employees may overspend, or you might incur a huge balance at the end of the month. Plus, you may also be liable to pay interests on your unpaid balances.

Businesses can resolve these challenges by choosing a virtual card like Mesh. You can dedicate custom budgets and top up your card to never overspend again.  

Additionally, Mesh comes with robust spending controls and provides real-time visibility into your expenses. In addition, you can issue unlimited cards to your employees without any restrictions.

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