A virtual card is an alternative to credit cards that you can use for online transactions. Unlike credit cards, it is not a plastic card that you can keep in a wallet. Instead, it is a set of numbers that are randomly generated. The number is tied to a real credit card. Every time you enter the virtual card number on the checkout page, you will get charged on your real credit card. The reason is that it can protect your credit card information from being released online and become accessible to hackers. The following are the 11 benefits of using a virtual credit card.
Hacking often occurs even in reputable sites that are protected with a secure SSL. The virtual card will protect your information as the information of your account cannot be tracked by hackers. Using a virtual card will put restrictions on the merchants to access your account.
Virtual cards are suitable for making one time purchases from new stores. New stores are not that trustworthy so you want to avoid using your real credit card to shop with them. In this case, using a virtual card will be able to protect your information not just from hackers but also from dishonest merchants. Dishonest merchants can often charge you extra for the purchases. If you suspect that the merchant is dishonest, you can always close your virtual card so that it cannot be charged anymore. Learn about virtual cards more here.
Virtual cards can be used for charging online subscription expenses. Sometimes, the subscription services will access your card to impose extra charges. They can look into your credit card account and learn about your information. The best way to manage online subscriptions is to use a new virtual card for each subscription. It allows you to easily track your subscriptions. You can track all your virtual cards in one place. It is also easy for you to identify a breach.
Many virtual cards give you full control over various aspects like spending limits and suspending the card. You can easily delete the card if there is a vendor that is attempting to impose extra charges. You can just delete the card in one click without having to go through the complicated cancellation process as when you are canceling a real credit card.
Virtual cards can offer fraud protection from merchants. You can freeze the virtual card when you suspect that the merchant cannot be trusted and want to do something funny with your data. It allows you to keep your funds safe and manage your finances efficiently.
Virtual cards give you the ability to set a spending limit. You can set a spending limit to prevent the card from being charged more than your budget if you have a bad habit of spending money. You can also set a date for the card to close. It is also possible for the card to close automatically after it is charged for the first time.
7. More Convenient to Make Payment
It is more convenient to make a payment with a virtual credit card than writing a paper check. It takes some time for the check to be processed. The payment can reach instantly to the seller with a virtual credit card. Purchases will get recorded in the supplier accounts receivable management system automatically. The staff at the accounts payable department will be relieved for not having to prepare additional paperwork and spending time to key in the information into the virtual card program manually. It allows the accounts payable department to focus on other more important responsibilities rather than processing the check payments.
Using a virtual card will help you to save money on the company cost. If you issue a paper check, you get charged a few dollars in fees. There is the cost of purchasing the chequebook, envelopes, stamps, and printer inks. Besides, you also have to take into account the cost of hiring the labor to mail the check. Some of the costs that the company pays out can be migrated to virtual cards. Doing so will significantly reduce the company cost.
Virtual cards have a cash back program in place to allow you to earn cash rebates when you are paying the suppliers. Every dollar that is spent can be qualified to earn a cash rebate. The more transactions you make with your virtual credit card, the more cash back you will earn. Not every virtual card offers a cash back program. You will need to do your research to find a virtual credit card with a good cash back program.
It is safer to use a virtual credit card than a physical credit card. In a virtual card, you can set the actual payment amount to the invoice. Usually, you can only use the 16 digit card number one time. No one can steal the card because it can only be used one time. You don't have to provide each of the suppliers with an open line of credit.
11. Manage Cash Flow Easily
Companies are responsible for managing the cash flow and monetary requirements. Often, the companies are required to pay a certain amount to the vendors within a specific timeframe. It needs to be determined whether there are funds in the accounts payable department.
1. Shop Online Conveniently
Hacking often occurs even in reputable sites that are protected with a secure SSL. The virtual card will protect your information as the information of your account cannot be tracked by hackers. Using a virtual card will put restrictions on the merchants to access your account.
2. Make One Time Purchases
Virtual cards are suitable for making one time purchases from new stores. New stores are not that trustworthy so you want to avoid using your real credit card to shop with them. In this case, using a virtual card will be able to protect your information not just from hackers but also from dishonest merchants. Dishonest merchants can often charge you extra for the purchases. If you suspect that the merchant is dishonest, you can always close your virtual card so that it cannot be charged anymore. Learn about virtual cards more here.
3. Charge Online Subscription
Virtual cards can be used for charging online subscription expenses. Sometimes, the subscription services will access your card to impose extra charges. They can look into your credit card account and learn about your information. The best way to manage online subscriptions is to use a new virtual card for each subscription. It allows you to easily track your subscriptions. You can track all your virtual cards in one place. It is also easy for you to identify a breach.
4. Total Control Over the Virtual Card
Many virtual cards give you full control over various aspects like spending limits and suspending the card. You can easily delete the card if there is a vendor that is attempting to impose extra charges. You can just delete the card in one click without having to go through the complicated cancellation process as when you are canceling a real credit card.
5. Fraud Protection
Virtual cards can offer fraud protection from merchants. You can freeze the virtual card when you suspect that the merchant cannot be trusted and want to do something funny with your data. It allows you to keep your funds safe and manage your finances efficiently.
6. Set a Spending Limit
Virtual cards give you the ability to set a spending limit. You can set a spending limit to prevent the card from being charged more than your budget if you have a bad habit of spending money. You can also set a date for the card to close. It is also possible for the card to close automatically after it is charged for the first time.
7. More Convenient to Make Payment
It is more convenient to make a payment with a virtual credit card than writing a paper check. It takes some time for the check to be processed. The payment can reach instantly to the seller with a virtual credit card. Purchases will get recorded in the supplier accounts receivable management system automatically. The staff at the accounts payable department will be relieved for not having to prepare additional paperwork and spending time to key in the information into the virtual card program manually. It allows the accounts payable department to focus on other more important responsibilities rather than processing the check payments.
8. Save Money
Using a virtual card will help you to save money on the company cost. If you issue a paper check, you get charged a few dollars in fees. There is the cost of purchasing the chequebook, envelopes, stamps, and printer inks. Besides, you also have to take into account the cost of hiring the labor to mail the check. Some of the costs that the company pays out can be migrated to virtual cards. Doing so will significantly reduce the company cost.
9. Earn Cash Back
Virtual cards have a cash back program in place to allow you to earn cash rebates when you are paying the suppliers. Every dollar that is spent can be qualified to earn a cash rebate. The more transactions you make with your virtual credit card, the more cash back you will earn. Not every virtual card offers a cash back program. You will need to do your research to find a virtual credit card with a good cash back program.
10. Virtual Card is Safer
It is safer to use a virtual credit card than a physical credit card. In a virtual card, you can set the actual payment amount to the invoice. Usually, you can only use the 16 digit card number one time. No one can steal the card because it can only be used one time. You don't have to provide each of the suppliers with an open line of credit.
11. Manage Cash Flow Easily
Companies are responsible for managing the cash flow and monetary requirements. Often, the companies are required to pay a certain amount to the vendors within a specific timeframe. It needs to be determined whether there are funds in the accounts payable department.
