Finding the right corporate credit cards for your company can be tricky. That being said, virtual credit cards have risen significantly in popularity throughout the business world.
However, before adopting these cards into your business, it’s important to know whether they’re effective at preventing and detecting fraud.
In this article, you’ll learn the ins and outs of virtual credit cards, as well as all the ways they can help protect your company from fraud.
What are virtual credit cards?
Virtual credit cards are a more technologically advanced version of your standard physical credit cards. They work just as you’d expect from a credit card, except only exist on a virtual platform.
You can distribute as many virtual credit cards as you’d like throughout your business – just be sure to choose your cards from the best provider.
We recommend choosing a platform that also offers spend management software, which is excellent for helping you know how to protect from business credit card fraud.
How do virtual credit cards work?
Just like standard credit cards, these virtual cards enable you to make payments across various different forms – whether it be online payments, phone payments, or payments in a store.
In order to access your cards, you need to install an application on your device known as a digital wallet. This is simply where you can view all your cards, search through your transaction history, top-up money on the cards, or cancel them.
With a spend management software, you’re able to keep your cards in a virtual wallet, whilst also having a range of features that help monitor, secure, and control every transaction that takes place throughout your company.
With advanced software to accompany your virtual cards, you’ll have the ultimate tools for enhancing your corporate spend, in the most secure way possible.
How can virtual credit cards help prevent fraud?
Virtual credit cards can help prevent fraud from impacting your business in many different ways, including:
- Complete visibility on all transactions
One of the best ways to prevent credit card fraud is to have complete visibility on all of your transactions, and this is exactly what virtual credit cards offer.
When using a spend management software, you’ll be able to view every transaction that occurs throughout your business on each card, as well as extensive data on each payment.
This means you’ll have a complete overview on what was purchased, how much was spent, what card was used, and what time the transaction took place.
With this visibility, you’ll be able to keep a close eye on every payment, and any concerning or suspicious activity can be quickly identified and promptly addressed.
- Advanced payment controls
You can also help prevent and detect fraud by using the expert payment controls on your virtual cards, which are offered by your spend management platform.
You can adjust and tailor every aspect of your credit card payments – setting spend limits on certain transactions, and only approving certain vendors to receive payments. This will ensure your cards are only used on trusted vendors, and that you’re in control of how much is spent per transaction – to mitigate the impact of any fraud.
Also, you can adjust the approval process so that any requests for a new virtual card must go through the appropriate authority first. This gives you full visibility and management on what cards are active, and who is using them.
With virtual credit cards incorporated in your business, you’ll be more than prepared to prevent fraud and protect your corporate payments.