By Zach Gregersen - SVP, Head of Global Sales
Like something from a future galaxy far, far away, payments have moved from traditional plastic to the virtual arena. A virtual card is exactly what the name suggests: it’s a credit card, but instead of plastic, the card is represented by a 16-digit electronic card number.
Juniper Research predicted in March 2019 that virtual cards would experience a 90% increase and by 2022 would surpass $1 trillion dollars, which is up from an estimated $568 in 2019. However, with the onset of COVID-19 and the increase in online purchasing, that percentage increase is expected to be even higher and the $1 trillion mark could be reached before the end of 2021.
If your organization is wondering if the time is right to make the switch to virtual cards, here are 5 compelling reasons to consider.
1. Did someone say rebate?
Yes! When paying suppliers and vendors with a virtual credit card, you earn cash rebates. Earn new revenue by simply paying smarter. And obviously, the more you pay with virtual cards, the more you earn back which is a great reason to make the switch today!
2. Say goodbye to fraud
Virtual credit cards are specifically designed with security parameters in place to protect funds against fraudulent misuse. These parameters can span several restrictions such as date of use, type of use and amount available. There is also an expiration date that can terminate the card number at any time.
3. No stress reconciliation
Everyone in business knows that time equals money. With virtual cards, you can count on easy reconciliation because of the extra data that is tied to the virtual payment. Data fields such as Order Number and Invoice Number make accountants love this form of payment.
4. Pay in real-time
Companies that use virtual cards can pay suppliers in real-time. Payments are entered into a supplier’s account receivable system, suppliers are paid immediately, and the concern that payments can be lost or stolen is eliminated.
5. Protect your funds
Using virtual cards to pay suppliers protects your funds if contracted services or items are never received or a supplier goes out of business.
Are you ready to go virtual?
If your company is still hesitant about virtual cards, keep in mind that most businesses that were able to successfully pivot during the pandemic lockdown relied heavily on technology. As businesses and the economy continue to rebound, virtual cards from a reputable payment vendor can be the best choice to grow your business.