As the world’s systems have become increasingly digital, the methods in which companies disburse money are moving online as well. Virtual payment cards are a modern medium for digital payments that provide companies instant and easily manageable alternatives to outdated payment methods like cheques or cash.
In this article we will overview what virtual prepaid cards are, and how virtual cards can improve your company’s digital payment processes.
“Virtual payment cards are a modern medium for digital payments that provide companies instant and easily manageable alternatives to outdated payment methods like cheques or cash.“
What is a Virtual Card?
Virtual cards are digital payment cards that have all the value and functionality of a plastic prepaid Visa card, but are instantly delivered online via email and can be used for online or mobile purchases. Virtual cards serve as fast, secure, and cost-effective payment solutions with high perceived value, instant deliverability, with immediate access to funds.
What Are the Business Problems That Virtual Cards Can Solve?
Virtual payment cards are used for a variety of use-cases that span various industries. Some examples include:
Rewards & Incentives Programs
Large retailers or marketing agencies can incentivize consumers with virtual rebate cards. For example, an automotive dealer can award customers a $50 coupon with the purchase of a new vehicle. Companies can also issue virtual employee reward cards, to show their appreciation to employees that exceeded company expectations.
Virtual cards are often used as a method to payout compensation for work completed or commission for a sale. Sales organizations can instantly pay earned commissions to reps using virtual cards, while avoiding the accounting nightmare of dealing with cash, cheques, or difficult to manage bank transfers. Gig-economy platforms can also facilitate payouts to gig-workers as they complete tasks on their app.
Virtual cards can be used to hold money, much like a bank account. Digital banks, stock trading platforms, and cryptocurrency sites can create digital bank accounts for their users with virtual cards, while providing the same functionalities as a bank account.
Quickly paying suppliers, vendors, or settlements from a business can be difficult and expensive through large banking institutions. Businesses are using virtual payment cards as a fast and cost effective way to disburse funds. Insurance companies for example, can payout insurance claims immediately using virtual cards, so that claim-holders can quickly get back on their feet.
What Are The Business Benefits Using Virtual Cards?
Speed of Payouts
Businesses can instantly issue virtual cards through email, and funds loaded to the cards can be used by cardholders on the same-day.
Control Payment Costs
Cheques and wire transfers can become expensive and riddled with fraud. Virtual cards are the most cost effective way to pay multiple providers, while maintaining high-financial security measures.
Virtual cards can be branded with custom logos and card art. Branded cards aid in building your business’s brand, or can help to keep users within your platform’s ecosystem.
Interfaces can be built on a set of APIs to enable easy and seamless integration to your back-end systems and customer interfaces.
Virtual cards have high perceived value and can be received by anyone with an e-mail address.
Simplification of Mass Payments
With virtual cards it has never been easier to simplify mass payments and eliminate disbursement logistics pains.
Virtual cards can be used to incentivize customers with rebates and rewards programs. Virtual rebate cards can increase brand engagement among promotionally-sensitive and qualified purchasers.