In the world of consumerism, many of us like to purchase items with a physical or virtual card. It’s simple and easy, and there’s more fraud protection. However, in the world of B2B sales, virtual cards are still gaining ground. Moving away from checks has taken longer on the business front. However, many companies now realize the importance and effectiveness of switching to digital payment processing solutions.
One tool that can be helpful and convenient for businesses is virtual cards. There are two types of virtual cards. Some are for one-time use, while others can be used for multiple transactions. Virtual cards can be issued quickly, allowing businesses to have a new number almost immediately. Virtual cards can also be used not just online but in person. Some cards can also be connected to a bank account and have a specific amount of funds attached. Businesses can even create spending controls for the virtual card, to limit what the card can be used for, adding an added element of security.
Virtual cards offer immediate payments, unlike issuing checks, which could take at least a day to be available. This allows for better cash flow and up-to-date accounting numbers. Some cards even allow for easy currency conversion if dealing with international transactions. Virtual cards allow for seamless, easy transactions since they can be saved and integrated into current systems. Information of each transaction can be stored in your system and easily tracked.
More businesses are realizing the perks that virtual cards offer. “In just one example, PYMNTS Intelligence found in December that, among middle-market companies — defined as firms with annual sales of between $50 million to $1 billion — 56% of executives using virtual cards have cited the improvements in working capital management as among the key advantages of using those cards.”
Accepting and utilizing virtual card payments can be a big win for businesses. There can be more control over payments and payments can be delivered with more proficiency. They even make payment reports easier. Overall, this percentage from PYMNTS Intelligence is not all that surprising.
Is your business using virtual cards and accepting this form of payment? If not, it may be time to look further into this option. At Richmond Financial Services, I’ll dive into payment processing with you and offer innovative solutions that can help your business move into the future. Please reach out to get started. I’m here to help support your business’s growth.
