Why are virtual cards better for business?
When it comes to payment card options for small businesses, virtual prepaid cards are becoming increasingly popular, and it’s not hard to see why. It’s an option that confronts the issues faced by other payment types and offers business owners an effective way to manage spending.
1. Safety and security
Virtual cards can be used for all the online purchases you’d normally make with a conventional credit card, but it can’t be traced back to the original account by hackers. Your exposure is also limited in case of fraud, as the only funds at risk are whatever you’ve preloaded onto the card.
Even if your card does become compromised in any way, you can freeze this card remotely and immediately without having to get in touch with your bank.
2. Added flexibility
Virtual cards are managed entirely online, so you can generate and activate new cards instantly. Finance managers will love using a suite of online prepaid cards that fit the way the business spends. For example, one card just for travel expenses or one just for Amazon purchases (this adds another layer of security as well).
Digital cards can also work as prepaid currency cards that handle international payments, from booking hotels abroad to paying global suppliers. So you can even use them as low-fee FX business cards.
Your account can be up and running in less than a working day, with no credit checks or lengthy processes, and then you’re free to generate virtual cards at will. This is a much more versatile system than the rigid processes associated with business credit cards.
3. Increased control over spending
Virtual payment cards give you an increased level of control and visibility over your team’s expenses. The pre-established budgets mean there’s no risk of overspending, so it’s safe to provide a card to any employee. Plus, you get complete control over how the account is used. You can limit it to specific sites, restrict spending to set dates, or even set spend categories so each card can only be used for certain types of expense. And if you need to increase the budget, you can add more funds in seconds.
Through a dedicated mobile app to track spending on the go, as well as a desktop console for expense management, Soldo’s platform gives you a granular level of control. These include, setting budgets and seeing where money is spent for each individual, department, project, team, or spending type.
You can set daily, weekly, or monthly budgets, limit how or where money is spent, and see every transaction as it happens in an easily exportable format.
4. Simple reconciliation
Another added benefit of virtual cards is that much of your data processing can be digitised, too. Unlike payment methods such as petty cash and business credit cards, virtual cards don’t require an archive of physical receipts. Any system that relies on the retention of paper receipts is prone to neglect, and finance teams can be faced with a real nightmare if data is incomplete.
With a virtual card, all the transaction information is stored within the prepaid card’s associated app. And with the right card provider, this spend data can easily be exported to accounting software. That means no more time lost to sorting through piles of paper.