How Virtual Payments Can Help You Manage Corporate Expenses

How Virtual Payments Can Help You Manage Corporate Expenses

How Virtual Payments Can Help You Manage Corporate Expenses
Around the world, businesses are using new technologies to redefine the capabilities and functions of internal departments from HR to finance. The advent of digitization and automation has cultivated a demand for greater accessibility, functionality and personalization from corporate buyers. Up until now, many companies were wary to introduce sweeping changes to their AP department, often relying on tried and true payment methods. But nothing can resist the tides of change, and buyers are looking at what that might mean for their AP departments.

The emergence of virtual payments as an alternative to traditional payment methods has caused a lot of waves in the market. But for a payment method that is expected to process over $500 billion by 2024, there is still a lot of questions surrounding virtual payments. In this post, we'll answer a few of the key questions about this growing technology.

What are virtual payments?
A virtual payment is a one-time use digital code that is generated for a purchase. The code ties back to a corporate credit card, but once the code is used, it is no longer valid. The buyer can set limits on the amount, data, merchant as well as other parameters. This is a critical step in controlling costs and cutting down on corporate risk and fraud, as it can ensure that even if the code is obtained by a third-party, they will not be able process the payment.

Furthermore, single-use codes cut down on fraud related to the actual corporate card. If an outside party gets the credit card number, they are free to make charges at will, putting the onus on you to reconcile the charges. Single-use codes will expire upon use, eliminating the risk associated with corporate credit card numbers.

Why use virtual payments?
As we mentioned above, the use of virtual payments significantly cuts down on risk and the potential for fraud and allows for greater use of spending controls and limits. But in addition to these protections, virtual payments also allow for expanded data capture, audit trails, data analytics and expedited payments for suppliers.

Another often overlooked benefit of virtual payments is allowing younger employees to make use of corporate accounts. Many junior employees that are required to travel will often not be approved for corporate credit cards, but through virtual payments, they will be able to draw on corporate accounts without being subjected to credit checks.

Who provides virtual payment options?
There are many ways to obtain virtual payment options for your company. Banks such as US Bank offer virtual payment and single-use accounts for its corporate accounts. Banks have been scrambling to develop new services for commercial users, and virtual payments has proven a viable way to retain corporate clients. Credit card providers such as American Express are also offering virtual payments for their corporate card holders.

Outside of banks and credit card companies, specialized virtual payment solution providers such as Globalvcard are also providing accounts payable, corporate travel and cross-border payments. Depending upon the needs of your organization, these specialized virtual payment providers offer different services that can address different requirements for both your suppliers and travelers.

Have you switched to expense management automation? Contact us today to find out how Certify makes travel and expense easy.