By CSI globalVCard
Earlier this year, CFO Magazine reported on the growing need for more secure payments and cited virtual cards as the answer to many pains experienced by financial executives today, including security threats, costly paper checks and inefficient accounting processes.
First let’s clear up the most important thing; What is a virtual credit card?
A virtual credit card is a unique credit card number that is generated to settle a specific transaction. There is no plastic card involved; instead the number is generated electronically via web or mobile. The virtual credit card number is typically issued for the exact amount of the transaction (similar to a check), significantly reducing the possibility of fraud. In addition to this heightened security, there are many reasons why businesses are rapidly adopting this technology.
- Security – 2014 became known as the year of the cyber attack, reminding us of the inherent risks involved with credit card usage. Single-use virtual cards eliminate the risk of stored credit card numbers being compromised. A unique credit card number is generated for a specific transaction, and that number becomes invalid after the intended transaction is complete.
- Spending controls – Virtual cards provide an unmatched ability to control all spending parameters. As payment is being issued, unique controls allow the user to place restrictions including dollar amount limits, day/time of usage, where the card can be used, and much more.
- Cost effective – Automating company payments through a virtual card system like CSI globalVCard can result in tremendous cost savings, measured in both dollars and the value of time and staff efficiencies. For companies still writing paper checks, the Wall Street Journal reported these costs could reach up to $20 per check.
- Easier accounting – Since one card number is generated for each transaction, virtual card numbers can be electronically tracked and reconciled within a company’s accounting software. At any given time, analysis can be performed to evaluate spending by employee, by department or cost center, and even tracked against budget.
- Versatility – The CSI globalVCard virtual card system adds a vital layer of security, control and efficiency wherever corporate payments are needed – electronic accounts payable, corporate travel payments, mobile payments.