Commercial digital card payments are set to exceed $1 trillion by somewhere in 2022. Because of this, they will make up at least 2% of B2B transactions. Now, more corporate accounts are offering these to businesses.
What is an online virtual credit card and why are so many businesses using them more nowadays? One of the biggest reasons more businesses are using them is because they save money.
Keep reading to learn what a virtual card is and how they, along with spend management software, can save your business money.
What Is an Online Virtual Credit Card?
A virtual card functions like a physical bank card. It uses an automatically-generated 16-digit “alias” number. When you sign up for an online virtual card provider, you will connect your core card to your account to fund your virtual credit card.
These cards, unlike traditional cards, come with many benefits. First off, depending on the service provider you go with, you can generate cards for different expense accounts by only clicking a button.
Other than categorizing your cards, you can also set spending limits, which make it harder for employees to misuse them.
While this software has been around for a while, they have recently made their way into B2B payments. Many corporate card providers now allow you to generate an unlimited number of virtual credit cards. You can also manage these cards through your spend management software.
How Can a Virtual Card Save You Money?
Virtual online credit cards come with various security features. A few include category restrictions, daily transaction limits, and other granular card controls. This ensures that your staff will only buy what they’re supposed to, which saves you money in the long run.
If your suppliers were to suffer from a cyber attack and a hacker were to steal your credit card information, your card’s features ensure no one can spend more money than you allow.
Depending on what provider you choose, some will offer incentives like 1.5% unlimited cashback. This perk adds another means for you to maximize your business savings.
If you’re looking for a stellar online virtual card provider that’ll give you the means to set spend limits, learn more about Bento’s p cards here.
What Is Business Spend Management?
Spend management software is software that helps your business manage company expenses. Some tasks that this type of software can perform include:
- Invoice and expense management
- Automated purchasing from suppliers
- Integration with CRM software
If you set your spending on autopilot, pairing a virtual card with Business Spend Management technology can save you time. As long as your expenses don’t fluctuate.
To speed up reconciliation and save time, you can integrate your virtual card Business Spend Management software with your accounting software.
Save Money on Business Spending Today
Using an online virtual credit card prevents employees from misusing your card and overspending. When you pair that with spend management software, you can identify and centralize all of your business expenses.
Do you want to learn more about how choosing certain technologies can save you more money? Explore more of our blog to find topics like that along with other subjects surrounding business.