For many years the shift to digital banking has been gaining momentum, including the usage of virtual payment methods. Virtual cards are being embraced by businesses largely due to their security benefits and usage flexibility. In 2017, it is estimated that organizations will spend $132 billion USD on virtual cards.
Three of the main benefits of using a virtual prepaid card system is the reduction of exception processing, reduced fraud, and superior transaction record details. The key highlights of each of these benefits include:
Improved Transaction Records
With traditional wire transfers, comes a lack of detailed remittance information as many transfers are limited to less than 140 characters to reference the transaction details. With virtual cards, comes superior transaction management platforms that allow custom reconciliation fields and better visibility to expense groups and budget categories. By having access to detailed line-item information, time spent on manual reconciliations can be significantly reduced.
Exception Processing Reduction
Additional built-in financial controls help to reduce costly and resource consuming exception processing. With single use cards, the payment amount is set and transactions will not be authorized for higher or lower payments - eliminating short and overpayment occurrences.
To this day, paper checks remain the most fraud-susceptible form of payment within the B2B industry. Surprisingly, in a research study performed by Ardent Partners in 2014, revealed that 42% of business payments were still being made by paper checks. Virtual cards offer superior financial controls - as well as the ability to control down to the final cent the amount approved for payment. Since there is no physical version of the card, it cannot be stolen. Furthermore, the number assigned to a virtual card expires immediately after the transaction has been completed, which limits damage potential if the number was to be shared or stolen.
For organizations that are looking to shift towards a more secure, electronic environment to pay invoices and employee expenses, we can help. Emburse offers a virtual prepaid card solution supported by an expense management platform that gives businesses better insight and control over their corporate expenses.
To find out more about our business expense solutions, click here to see a video of what we offer or contact us to request a live demo. We look forward to sharing insights on how we can help your organization.