Virtual Prepaid Cards: A Smart Online Payment Option for Businesses
The internet has revolutionized the way people communicate, find information and shop. With products and services available at the click of a button, companies are also taking advantage of online payment options such as virtual prepaid cards.
Here is what the experts say about the growth of virtual payments around the globe:
- According to Yahoo Finance, companies can expect growth within the virtual card market to grow from $83 billion in 2015 to $160 billion in 2018 and over $500 billion by 2024.
- A Deloitte study found that B2B spend paid via cards / digital accounts grew 42% between the years of 2011-2014 in Australia, and 66% during the same period in New Zealand.
Virtual prepaid cards are convenient and cost-effective, providing various benefits that traditional payment options do not, benefits such as more secure online transactions, enhanced visibility, robust budgeting, and a streamlined payment process.
Streamlined Payment Process
Virtual prepaid cards are designed specifically for online payments and purchases. You can shop anywhere online where Visa® and MasterCard® are accepted, and you can also use them for phone orders.
With a virtual payment program, you can add multiple prepaid cards for different payment purposes, set expiry dates, and discard the cards when no longer needed. You can fund all the cards through one corporate account, giving you full control of spending limits, company budgets, and business expenses.
There is also no paperwork involved with virtual prepaid cards, since everything is processed online, without the need for manual reconciliations. Payments are quick, allowing you not only to pay suppliers or distributors instantly, but also receive online payments to your virtual prepaid card account.
With millions of transactions processing every day, companies want to protect their private information from card information thieves. According the Kroll Global Fraud Report, 51 % of companies describe themselves as highly or moderately vulnerable to information theft. Not to mention, the value of online fraud is predicted to reach $25.6 billion by 2020, according to the Juniper Research.
In light of these stats, virtual prepaid cards are specifically appealing to companies because they have exclusive security features. So what exactly are these features?
- Virtual prepaid cards cannot be stolen or lost because they are not physical cards (information is stored online with access via a launch window)
- Cards are not connected to a bank account, eliminating the chances of private information theft
- Virtual cards can be edited or deleted after the card has been used
- Companies can create multiple cards for different purposes and merchants
Virtual prepaid cards enhance visibility on all of your online financial activities, providing rich information about every transaction. You’ll receive access to valuable data, allowing you to see information such as invoice numbers, coding information, and payment dates with the corresponding merchants. All this information is monitored through the online launch window, which also provides you with detailed and customized reporting.
Excellent Budgeting Tool
Virtual prepaid cards are the perfect tools for budgeting. You can only spend the amount loaded on the card, meaning there is no overdraft or credit limit as you would have for a debit or credit card.
Virtual prepaid cards come with built-in financial controls, allowing you to fund the card for either single use or multi-purpose payments. You can set the payment to an exact amount, eliminating the chances of over or under payments. The ability to monitor all transactions and set up recurring payments for specific suppliers will also save the company money in the long run.