Many companies and agencies have seen the business benefits of using virtual credit cards in recent years. In fact, one market research report detected a 21 percent growth pattern from 2018 to 2025.
During that time period, use is expected to grow from $188.61 billion annually to $739.77 billion. (Or nearly three-quarters of a trillion dollars!) In the following article, we explore the business benefits that show why that is!
1. Convenient Use
The first major business benefit is that it can be accepted by anyone. Virtual cards are transferrable to any vendor or store that takes traditional credit cards.
After all, they are simply one-time use cards that don’t require actual plastic to complete a transaction. Numbers are computer-generated and easily plugged into whatever e-commerce solution you’re using.
2. Fraud Detection
Another great feature of virtual credit cards is improved security. This has a benefit specific to businesses in the area of fraud detection.
Since cards can only be used once, the underwriting software knows immediately when there is an attempt at a fraudulent purchase. It allows the cardholder internal control on which vendors card numbers are used for and even the exact amounts.
3. Control Spending
The spending and vendor control has another pretty huge benefit for businesses. It allows them to control expenses down to the penny.
Any deviation from this would require a separate approval process. This brings better scrutiny to the transactions that you take part in with each vendor. It allows you to shut down the possibility of waste and better manage cash flow.
4. Increase Accountability
These money management protocols allow businesses to hold their employees accountable as well. Departments have the power to make purchases but are limited in where they target those dollars.
For companies that have the control to move money, they can target funds to their specific needs. That’s instead of giving money to one department that spends the money whether it’s on items that are necessary or not. As a result, there are fewer silos for financial abuses to occur internally.
5. More Room to Record Details
One annoying thing about business finances using traditional card systems is the limited character counts. You make multiple purchases across several vendors. Then, you spend several hours trying to figure out what the purchase was when the invoice arrives.
Virtual credit cards allow you more reporting freedom. You’re able to record many more details about the transaction at the point of purchase. This makes it much easier to categorize expenses at the time of payment.
6. Streamline Workflows
Using options like Bento For Business virtual cards, among others in this space, will give you the ability to streamline workflows. You don’t have to send every request for payment through a chain of command.
As a result, invoices get paid quicker and your business standing improves among all vendors. Furthermore, the employees most knowledgeable about the specific department have the power to make purchases.
These Business Benefits Allow You to Reinvest in Your Success
There are multiple business benefits to using virtual credit cards. Perhaps the biggest is that you’re able to reinvest any savings into your success.
Try them out, and see if you notice an improvement in your bottom line. For more business financial tips and information, check out some of our additional posts!