Virtual cards bring benefits to both businesses and consumers. For businesses, virtual cards can help better control employee spending than reimbursements or corporate cards. Companies using virtual cards can set spending limits, allow what type of purchases can be made on the cards and designate whether the card can be used once or multiple times.
For example, the rise of remote work means more employees are buying their own office supplies and other work equipment. Virtual cards can allow employers to set limits on how much remote employees spend on office supplies. Virtual cards can also be used to provide corporate card access to employees working remotely who may not have access to a physical card delivered to their office.
Virtual cards can be issued instantly and payment settlement happens immediately, improving cash flow data.
For consumers, a virtual card lets them access a new credit or debit card immediately from a card provider, faster than they would if they were waiting for the physical card to arrive in the mail. The virtual card will carry a different number than the physical card. Consumers can then instantly use the virtual card through a mobile wallet like Apple Pay or Google Pay.
A virtual card can also be used to issue an instant replacement card to a consumer who has lost their physical card and cannot wait several days for a replacement to be mailed (such as someone away from home on vacation).