Virtual credit cards can come in very handy for companies who have remote employees, deal with out-of-town vendors or need to make one-off or online payments. Creating a virtual credit card allows a company to generate a number that is different from, but connected to, their actual credit card. Charges made on the virtual number can be limited to a single-use, to a certain time frame or a monetary ceiling. In this article we elaborate why it makes sense to generate virtual credit cards for your employees.
Because generating a virtual credit card creates a new, randomly produced number that’s connected to your actual company credit card, there’s no possibility of your primary card being compromised. With added security measures such as creating a single-use virtual number, limiting the time span within which the number can be used and including a spending limit, virtual credit cards are ideal for purchases made over unsecured internet connections, with unfamiliar merchants or in foreign countries where credit card scams are common.
Virtual credit cards allow employers to control their expenditures by setting spending limits or restricting when the cards can be used. By implementing a spending ceiling on a virtual card number, an employer can be certain of the maximum amount that can be charged. Similarly, by limiting a virtual card number to a single-use or setting a time restriction, an employer can accurately predict when any charges will be made.
When using virtual credit card numbers for recurring payments such as subscriptions, a company can insure themselves against overpayment by deactivating and disposing of a virtual card number when they no longer wish to receive the service. As opposed to having access to a primary credit card number, once a virtual number is decommissioned, a merchant is unable to continue making charges.
Virtual credit cards are very useful for companies who employ remote workers. When you generate virtual credit cards for your employees in a distant location, the employer doesn’t need to rely on expensive couriers or a slow postal system required by physical cards. Virtual cards also have the advantage of being issued instantaneously online whereas physical cards need to be delivered by slower conventional methods.