Virtual credit cards for employees (or purchase cards) are a popular tool used by many small and medium-sized businesses.
They offer direct supervision, separate spending reports, immediate access, remote (and immediate) cancellation in the event of termination, and much more.
Additionally, they can be much easier to obtain when compared to traditional US credit cards, like American Express for non-US residents or Chase business cards for employees.
In this article, we’ll explain the ins and outs of virtual cards for employees. We’ll also share a few important considerations before you release them to all of your team members.
Feel free to use the table of contents to jump ahead to any sections that are immediately relevant to your search.
Table of Contents
- Virtual Credit Cards 101
- How to Obtain Virtual Credit Cards for Employees
- Frequently Asked Questions
- Ready to Open Accounts With Banks in the USA?
Virtual Credit Cards 101
Virtual credit cards and virtual cards for employees refer to two different types of payment cards. So, let’s start by laying out the differences between them.
Virtual Credit Cards
Virtual credit cards typically refer to a temporary credit card number that cardholders can use for a set period of time, usually one day. This enables the cardholder to make purchases online without exposing their actual credit card number to the merchant on the other end of the transaction. This has obvious advantages in terms of security and privacy when compared to standard credit cards.
It’s important to note that not all merchants accept all credit cards and sometimes your card can’t be used for that transaction.
Virtual Cards for Employees
Virtual cards for employees operate in a similar way to virtual credit cards, however, there are some differences. In particular, virtual cards for employees are tied to the parent account of the company. However, in order for this to be an option, the company has to bank with one of the few banks that offer these services.
Additionally, while virtual credit cards are often beneficial in terms of privacy and security, the main benefits obtained from virtual cards for employees are related to the separation of expenses, oversight, remote management, and more.
Alternatively, if you’re looking to compare US credit card options, based on credit cards that use Transunion, you can get started now by accessing our free guide linked here.
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How To Obtain Virtual Credit Cards for Employees
The first step in obtaining virtual credit cards for employees is for the parent company to have an account with a bank (or digital bank) that offers virtual cards.
That said, there are only a handful of financial institutions that actually offer virtual cards for employees as a service. So, if the parent company doesn’t already have an account with one of these platforms, it will need to open one.
The next step is enabling virtual payment cards as an option. In most cases, this is automatic. Though there may be some restrictions on the number of cards that can be issued to your employees. If you need a high number of cards, you may want to choose one of the specific platforms that offer this as a service.
Frequently Asked Questions
Below are two of the most common questions that we receive from people looking to acquire virtual credit cards for employees. If you have further questions you would like answered, don’t hesitate to get in touch with us directly.
What Is a Virtual Credit Card and How Does It Work?
A virtual credit card is a temporary card number that can be used for a fixed period of time. Typically one day. The benefit of virtual credit cards is that they provide an additional layer of protection between you and online merchants. In other words, your credit card information cannot be stolen. Or, used for future purchases outside of the initial time frame granted to the virtual number.
What Are Corporate Virtual Cards?
Corporate virtual cards refer to payment cards that are issued to employees through digital banking platforms. They essentially operate like physical payment cards, with a card number, security code, and expiration date. However, these cards are enabled through apps and can be managed entirely remotely by the employer.
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