Virtual payment cards, also known as “vCards,” are unique, randomly generated credit card numbers designed for secure, efficient, and flexible payments. They can be used wherever traditional credit cards are accepted, both online and offline (via digital wallets like Google Pay or Apple Pay). These cards are increasingly popular for business use, especially in accounts payable (AP) departments looking to streamline payments and improve security.
How Do Virtual Cards Work?
A virtual card is generated through software and linked to a specific dollar amount, timeframe, or vendor. It can be single-use or reusable within a set budget or category. Once created, employees use the virtual card to make payments just as they would with a physical card, but with tighter controls and far less risk.
With AP automation platforms, virtual card requests go through pre-configured approval workflows. Spending limits, timeframes, and categories are set upfront, reducing surprise charges and keeping stakeholders informed. Every transaction automatically syncs to the general ledger (GL), minimizing reconciliation time and ensuring up-to-date financial visibility.
Why Businesses Are Switching to Virtual Cards
Virtual cards are more than a modern convenience—they’re transforming how businesses manage payables. Here are the top benefits:
1. Greater Payment Security
Virtual payment cards are locked down to specific amounts and timeframes, which makes them useless if intercepted or used outside their intended purpose. If compromised, only that single-use number needs to be replaced—not an entire credit card account.
2. Improved Visibility & Control
Every card is tied to a person, department, or purpose. This transparency, along with built-in audit trails, makes tracking and reporting easy. It helps managers proactively manage budgets and quickly flag any inconsistencies.
3. Cost Savings & Fraud Prevention
Virtual payment cards reduce risks tied to check fraud, prevent zombie subscriptions, and eliminate paper processing costs. Auto-renewals are flagged, and charges for former employees can be quickly shut off.
4. Faster Reconciliation
Since virtual card transactions auto-sync to the GL with preset categories, reconciliation happens in real time—eliminating manual data entry and speeding up the month-end close.
5. Cash Back & New Revenue Streams
Many virtual card programs offer cash back on spending. By routing AP spend through virtual cards instead of checks or ACH, companies can turn expenses into a new income stream.
6. Happier Vendors
Vendors benefit from fast, secure payments without the hassle of checks or deposit delays. Many AP platforms will even assist with supplier onboarding, increasing acceptance and payment automation rates.
7. Empowered Employees, Strategic Finance Teams
Employees can easily request cards through automated workflows, making them more accountable for spending. Meanwhile, finance teams are freed from manual work and can focus on strategy and analysis.
Seamless Integration with AP Automation
Virtual payment cards work best when paired with modern AP automation tools. These platforms handle vendor onboarding, card creation, GL sync, and reporting—often even negotiating rebates with card issuers.
Ultimately, switching to virtual payment cards means more control, better security, improved cash flow, and reduced processing headaches—all while generating potential rebates. It’s a win-win for AP teams and vendors alike.
Ready to streamline your payments and earn more from your AP spend?
Call us at 888-790-3450 to set up your free demo, or learn more about our virtual card solutions