With the first cashless society predicted to emerge in 2023, many businesses are moving away from traditional cheques and towards digital payments. For both large and small businesses, one practical option for many is virtual prepaid cards.
Virtual cards are essentially debit or credit cards that are created online. They are favoured by many as a digital solution that is both quicker and more accurate than other payment methods – yet they are still shrouded in mystery.
To help you decide whether a virtual card could be right for your business, we’ve debunked some top myths about virtual cards.
Myth 1: they are high cost
While many businesses shy away from virtual cards due to their “high cost”, the opposite is in fact true. Virtual cards could save you money compared with traditional paper cheques and Automated Clearing House (ACH) transfers.
By way of example, paper cheques tend to have high administrative fees, meaning you could save by making the switch.
Myth two: high risk
On the whole, many businesses are reluctant to use virtual cards because they assume they aren’t as secure as other payment methods. However, virtual cards were designed with security at heart.
Virtual cards are much less likely to be subject to fraud than other payment methods. As virtual cards generate a single-use card number, in the event your data was stolen, fraudsters wouldn’t be able to use the card for other purposes.
Myth three: virtual cards are not favoured by vendors
Many businesses assume that vendors would not willingly accept virtual cards as a payment method. However, once vendors are aware of how virtual cards work and their benefits, most are more than happy to enroll.
Myth four: virtual cards aren’t great for small businesses
Many small businesses believe that virtual cards would mean increased admin time, which many could do without. But the reality is that virtual cards can actually be easily integrated into most businesses.
Alongside that, nowadays you can also get AI to match up invoices with payments coming in, so it could actually save businesses time. That combined with potential cost savings means virtual cards are a great solution, especially for small businesses.
Myth five: virtual cards require lots of company resources
Wrong! Virtual cards were designed to simplify the process. Virtual cards automate a large proportion of the process, which can save you and your employees valuable time in the long run.
And there you have it!
Although virtual cards are seen as somewhat of a misnomer, there are plenty of reasons why you should consider them. Virtual cards are quicker, require less admin time and are more resistant to fraud. So if you’re looking to digitalise – why not consider virtual cards?