A virtual card holds your banking information on your mobile device and is used for contactless payments in-store and online. When a customer uses a virtual card, it has its own unique card number, expiration date and CVC. This is to protect the customer’s account number in case it falls into the wrong hands.
The biggest reason customers are interested in virtual cards is because of increased security. It’s comforting to know that there’s no way a virtual card can be stolen and duplicated since there’s no physical item to be stolen and each card is unique to the user. If you haven’t taken the time to consider how virtual card payments impact your business, now is your chance. Here’s what you need to know:
Make sure your in-house system can accept virtual cards
48% of businesses say they’re unprepared to handle virtual cards, according to a recent study from PYMNTS. Some of the most common reasons why these businesses are unprepared are that their current system cannot accommodate virtual cards and they lack the expertise to handle these types of payments.
Other reasons that stunted the shift included a belief in problematic transactions, high costs, lack of supplier/customer interest and integration problems.
Although there can be some hesitation in making the investment in technology that accepts virtual cards, it’s worth it in the long run because virtual cards are here to stay, and you’ll need to stand out from your competitors and increase sales. I recommend enlisting help from a trusted third-party source that specializes in virtual payments and is within your current budget,
Educate your employees
It’s important to understand how making the shift to virtual payments benefits your business internally. One huge benefit is that you’ll limit the exposure of credit and limit the number of plastic cards given to employees, which is great for the environment.
Instead of employees carrying around plastic credit cards all of the time, certain departments request spending and are issued virtual credit cards as needed, according to this article from Payments Journal.
Get ahead of the innovation curve
If you’re open to investing in new technology that benefits your business, you’re actively getting ahead of the innovation curve and are encouraging other small business owners to do so. You’re actively promoting best practices for expense management, which sets a standard in your industry.
If you need expert help in the payment processing area, be sure to get in contact with me at Richmond Financial Services by visiting my website or calling 617-843-5700.
