Today’s world is increasingly becoming digital in every aspect. This includes the payment of goods and services through the use of virtual debit cards. These virtual payment cards have transformed how companies manage and make payments. Therefore, this has helped save businesses excessive fees and valuable hours spent doing admin tasks.
As a business owner, you might be wondering whether getting a virtual debit card would be of any use to your company, or streamline your finances even as you expand your operations. With this in mind, below are reasons why you should consider getting a virtual debit card for your business. But first, you need to know what a virtual debit card is.
What’s a Virtual Debit Card?
A virtual debit card is a digital version of the physical debit card linked to your underlying debit card. Besides being virtual, it includes all other aspects of the physical debit card, such as debit card number, cardholder name, card verification value (CVV) code, and expiration date. It also has a 16-digit randomly-generated number.
You can quickly and easily make payments over your phone or online payments using the virtual debit card. However, you can’t use this card to withdraw money from your account.
Reasons to Get a Virtual Debit Card
Using a virtual debit card service will provide you with a couple of benefits. These include:
1. Reduced Number of Payment Fraud Incidents
Traditional physical cards create an easy target for theft, either by getting cloned or being stolen. But when using a virtual debit card to do your business transactions, you enjoy greater security from fraud and theft. This is because you can easily deactivate your virtual debit card in minutes. You also don’t share bank account numbers. Thus, you can enjoy greater peace of mind when making online payments.
In addition, they don’t have visible card numbers and magnetic strips present on physical cards. Hence, it becomes harder for unauthorized individuals to hack into your account. Some virtual cards also require face scans or PIN details before accessing your account.
You can also set your virtual debit card to be single-use and expire immediately after using it. This offers you further protection by ensuring your card is not used by unscrupulous dealers. Nonetheless, make sure to use a virtual debit card issued by a trustworthy provider. This way, you can be certain that their card network boasts excellent security features and extensive fraud checks.
2. Improved Oversight And Accountability
In business, you need to be accountable for every penny you spend or you risk experiencing cash flow problems or suffering considerable losses. This is where using a virtual debit card comes in handy, as it allows you to have excellent oversight and accountability for all your business transactions.
With the virtual debit card, you’ll be able to determine how and where all your money is going as each transaction is automatically recorded in the card management system. This saves your accounts department the hassle of manually checking the expense receipts to validate each transaction, which is often time-consuming. So, you can easily and effectively monitor and control as you can easily know how every penny is spent.
The card also comes in handy if different employees use the same virtual card to make different transactions. You can also set limits each of your staff can spend to further boost transparency and prevent any violation. This allows you, as the business owner, greater control of uses in company finances and ensures increased accountability.
3. Convenience For E-Commerce Activities
Running a business is highly engaging and requires you, as the entrepreneur, to be fully committed to the daily operations of your enterprise. Using the virtual debit card offers you this freedom because you don’t need to physically go to the bank to complete a transaction. Additionally, you can do the transactions 24/7, unlike a physical bank operating at certain hours.
Getting a virtual debit card also doesn’t require you to file a lot of paperwork. Along with taking a lot of time, paperwork increases the chances of making a mistake. Also, you can start right away instead of waiting 7 to 14 days for your account to start running. This is because you can handle everything conveniently and quickly using your computer. As a result, you can shift your focus to other vital matters relating to running your business.
4. Promotes Teamwork
Another advantage of virtual debit cards is that it promotes teamwork among the employees within your business. This is because your staff will constantly need to communicate with each other when keeping track of their spending. Doing this helps to inspire collaboration within them, and they’ll find ways how they can reduce their spending. This will help the team come up with a fixed budget they can use to guide them for quarterly campaigns.
5. Saves Your Organization Time And Money
Time and money are two precious assets you don’t want to waste in business. Utilizing a virtual debit card ensures that wasting time and money doesn’t happen because you can quickly get one at the click of a button, unlike physical cards that require manual work for making payments. You can start using virtual debit cards to do transactions, which in business is vital considering every minute counts if you want to remain competitive.
The use of these cards saves you money because digital transactions are faster and cheaper. This is because regular admin tasks are cheaper when making digital transactions.
6. Helps You Take Back Power From Vendors
Once a vendor has your card information, they can charge you each time they want. Because of this, you might find your subscription lasting longer than you wish. Using a virtual debit card account, you can prevent this as it offers you greater control over all your online subscriptions. Accordingly, prevention allows unnecessary payments from being charged to your account if an employee forgot to cancel a subscription.
Virtual debit cards are the go-to option nowadays among many businesses for both online and offline transactions. This especially comes in handy as a business owner because you’ll need to make a lot of business-to-business (B2B) transactions to pay buyers or suppliers, and you don’t want to waste precious time physically lining up at your local bank. Detailed in this post is an outline of why getting a virtual debit card can be a wise move for your business in case you have even the slightest reservations.