If you are involved in purchasing or financial decision-making for your company, you have likely heard the excitement surrounding virtual credit cards (also known as electronic or ePayables) over the last few years. The payment industry is moving increasingly towards paperless vendor payments, and it is important to understand how they can benefit your business and what to look for in a virtual payment provider as you research solutions for your business.
What is a single-use virtual card number and how do payments work?
A virtual credit card is a unique 16-digit number issued for a specific amount and tied to a single vendor payment. EPayments are designed to be an alternative to check or ACH payments and can be accepted anywhere credit cards are accepted.
What makes virtual payments particularly useful for businesses is that they allow you to set specific dollar amounts and expiration dates, thus emphasizing the protection of your company’s assets. And because these are credit card payments, you can earn rebates on every dollar spent – similar to the way a consumer earns cash back on a personal credit card.
The chart below shows the five main steps involved in processing a virtual credit card. Paying your vendors and suppliers through a virtual credit card program can eliminate the costs associated with printing and distributing paper checks, speed up the turnaround time in which your vendors receive payments, reduce the risk associated with lost and stolen paper checks and make your payment process much more efficient.
Why should you care about virtual payments? Learn about the benefits here.
Still not sure? Download the complete white paper to learn the ins and outs of virtual credit cards.