Businesses invest a lot of money securing their payment card data but are vulnerable to attacks that use compromised credit card data. Virtual cards and virtual card security can help to significantly reduce the impact of these attacks. They allow your business to quickly disable the use of affected payment cards while continuing to accept legitimate payments.
Virtual cards are becoming an increasingly popular solution for businesses to protect against the costs of compromised credit card information. Virtual credit cards are replacing traditional plastic cards for reduced costs and improved security. It is no secret that virtual cards are on the rise. In fact, according to a recent report, there is a staggering 370% increase in virtual card transactions worldwide.
With these numbers and the many benefits of using virtual cards, if you’ve not taken the step yet, then it is high time that you consider shifting to virtual cards for businesses. One of the greatest benefits of virtual cards is how much they reduce the impact on your company’s bottom line when dealing with fraudulent transactions. This article will discuss how virtual cards protect your business against vulnerability and can save you money.
How Virtual Cards Security Saves on Costs of Compromised Business Credit Cards
You might have read or heard about the terrible stories of increased online fraud and cybercrime during the COVID-19 pandemic. The increase in these fraudulent activities was mainly attributed to the growth of online shopping and electronic payment options such as credit cards. Due to the costs and dangers associated with credit card fraud, many businesses are increasingly shifting to virtual cards for accounts payable (AP).
Credit card fraud can be costly for your business. Not only do you lose money when someone uses a stolen or compromised card, but there are also several other costs associated with it, including:
- Lost sales: If one of your customers tries to make a purchase with a compromised credit card, they’ll likely leave without purchasing if they aren’t able to use their own money.
- Fraudulent charges: If someone uses a stolen card at your business, they could charge thousands of dollars worth of merchandise or services on the card before being caught by the bank or police.
- Time wasted on managing issues: If someone uses a compromised credit card at your business, you have to spend time resolving the issue. That takes time away from running your business smoothly and efficiently.
As a business owner, you understand the importance of keeping your customers’ information safe. In fact, the payment industry has spent millions of dollars on security technology that helps protect online credit card transactions. However, this investment is only worthwhile if it actually reduces the costs associated with credit card fraud.
The cost of a compromised account can be significant for businesses, especially if someone steals the information on multiple accounts. Virtual cards are a solution that can help reduce those costs. Virtual cards are not physical cards; they’re just numbers associated with the bank account that you can share with others without giving them access to your bank account.
Companies like Airbnb, Uber, and Amazon often use virtual cards when they have users who want to pay online but don’t have their own payment information saved on file yet. These companies send out virtual cards so that users can use them as payment methods when making purchases through their websites or apps. If you want to join them, you can contact us today for assistance or learn more about the service.
Virtual cards also provide security benefits for users. They’re more secure than regular credit or debit cards because they don’t require personal information (such as an email address). But cost containment and security are just the tip of the iceberg; there are more reasons for using virtual card payments.
Other Benefits of Using Virtual Cards
Below are other reasons why your businesses should consider using virtual cards payments for accounts payable:
1. Virtual Cards Security Features
Security is one of the top reasons to use virtual card payments. Virtual cards change their numbers every time a transaction is made, thereby minimizing the chance of fraud. The payment is made only in electronic form. It does not require any exchange of physical documents between the merchant and the customer.
2. No Interchange Fees
You pay no interchange fee when you use your virtual card. You will not need to pay interchange fees when processing transactions through your payment gateway; virtual cards don’t incur these fees.
3. Cashback Rewards
Cash rebates such as 1.5% cash back on all transactions processed through your payment gateway are another great reason you should switch from traditional credit cards to virtual card payments.
4. Eliminates the Use of Cheques
Virtual cards eliminate the use of cheques by businesses. Cheques have security risks that can lead to theft or fraud and are often costly to process. Plus, if your company has employees writing cheques as part of their job responsibilities, they have to spend time processing payments instead of doing their actual jobs. Virtual card payments almost completely eliminate both problems.
5. Automates AP Processes
Virtual cards also help with accounting because they automate accounts payable. For example, after a purchase, the merchant can simply enter the transaction into their accounting software. It can then automatically create an invoice and forward it to accounts payable. This makes it easier for your employees to track payments and pay invoices on time. This not only helps you collect money faster but also makes it easier for your clients to pay on time. In short, it streamlines the accounts payable process, making it simpler for everyone involved.
Virtual cards have security options that allow consumers to use their credit cards as an alternative transaction method to cash, cheque, or debit. They’re a convenient way to make online, phone, or point-of-sale purchases without needing a physical credit card. In general, virtual cards’ security features will significantly reduce the cost of compromised business credit cards.
Util Auditors is a leading provider of audit services for businesses. We specialize in helping companies identify and correct utility and service contract billing errors that can negatively impact their bottom lines. Our experienced team has extensive knowledge of utility and service contracts. We also have the resources to provide timely and accurate reporting on those contracts.
We offer a variety of audit packages designed to meet the needs of businesses of all sizes, from small startups to large corporations with hundreds of thousands of customers across multiple states. Contact us today for more information.