Tips to use corporate virtual credit cards effectively in Australia
Money movement around the globe has been optimized to make it easier and faster. The need for quick, hassle-free, contactless payments gave birth to virtual cards.
Further, to make these cards customized to business requirements, corporate virtual cards were introduced. Corporate virtual cards are similar to the usual cards but just in a non-tangible form and have a lot more features catering to business needs. These features are a larger credit/spending limit, more control and management features, and better system connectivity.
Keep reading to answer questions like “how to use virtual cards in Australia?”, “how do virtual cards work?”, and many more.
How virtual credit cards work?
First and foremost, corporate virtual cards are of three types: credit, debit, and virtual prepaid card. Here, we will be discussing virtual credit cards. Virtual credit cards are similar to conventional credit cards. However, you don’t have to carry that card around with you — it is available on your phone or system.
You can make online purchases by entering the virtual credit card number and the CVV number. The amazing thing here is that the 16-digital virtual credit card number and the CVV number are randomly generated, and the card is not directly connected to your business bank account.
Along with this, there are virtual credit card providers that are expense management software as well. This means that the virtual credit card provided by these platforms are connected to the management software that offers businesses with extra controls like real-time expense updates, automated accounting integration, international transaction support, and more organizational features.
The best working feature of virtual credit cards is the safety aspect. As the numbers are randomly generated, the card is intangible, and two-factor authentication type security features are embedded in the cards; these become the safest channel to make payments.
Tips for using virtual credit cards effectively
1. Set spending limits and track expenses
Setting spending limits and tracking expenses is one of the most effective ways to use corporate virtual credit cards. These cards are connected to either an expense management system or have their own application where all transactions are recorded in real-time.
Along with this, the managers can set spending limits on the cards. So, expenses under the limit are automatically approved, and anything above it will require higher approval.
2. Use virtual credit cards for online purchases only
Virtual credit cards are the most beneficial for online purchases. The card user is just required to enter the 16-digit card number, CVV number, a security passcode, and voila, the payment process is that easy.
So, all the inconvenience of physical credit cards is effortlessly eliminated through a corporate virtual credit card. Plus, the virtual card numbers are randomly generated, so extra safety.
3. Use a separate virtual credit card for recurring payments
One of the best features of a corporate virtual credit card is the recurring payment feature.
Card users or managers can not only set spending limits, but they can also set if their virtual credit card is supposed to be used for recurring payments or just for one-time payments.
One-time payment cards are virtual burner cards. Whereas, if the setting is done for recurring payments, this is used to transfer money to subscription-based vendors.
4. Update virtual credit card information when needed
Another amazing feature that makes virtual credit card usage effective is anytime, anywhere information update.
As virtual credit cards are connected to either software or an application, you can easily access card-related data anytime, anywhere.
Plus, you can also make amends, approve expenses, and block or freeze the card with just a few clicks on your device.
5. Choose a virtual credit card with rewards or cashback offers
Not only are virtual credit cards extremely convenient, but they also come with rewards.
With proper and managed usage, these cards can help your business gain travel points, lounge access, cashback, discount offers, and much more. This means you don’t only save on expenses but also reap extra benefits.
Are you confused to choose best virtual card for your business? Check out our article on how to choose the best virtual card provider in Australia?
Benefits of Volopay virtual card
Searching for the best virtual card in the market? We got you! Volopay is an expense management software that offers the best virtual cards.
They are best not only because the basic concept and features of the virtual cards are beneficial for business. It is the best because it is connected to a full-fledged spend management software which adds a whole package of other advantageous features.
Here are a few Volopay virtual card features:
With spend limit controls and automatic expense policy compliance, streamlining expenses becomes easy.
Along with this, the cards can be assigned to different projects or budgets. Hence, expenses already get separately organized and streamlined.
As the virtual cards are connected to the comprehensive Volopay expense management system, you can get real-time updates about all card activity.
All necessary transaction information is automatically tracked and recorded in a database for easy access.
Another excellent attribute of Volopay virtual cards is the multi-currency transaction facility. You can make transactions in more than 60 currencies through virtual cards.
Plus, Volopay guarantees the lowest FX charges on all international transactions.
If you have a Volopay business account, you are eligible to apply for a Volopay business line of credit. You can use virtual cards to spend the credit amount.
After fulfilling some minimal requirements and formalities, you can get your hands on a greater amount of credit in comparison to other providers in the market.
Volopay virtual cards can help you automate all your vendor payments. You can assign these cards to different employees, projects, vendors, or departments.
So, you can set your cards on a recurring payments option, so every month, a certain amount would automatically be transferred to that vendor.
The automatic and real-time data-capturing feature is further connected to accounting software.
So, all the expenses made through the card also get entered into the accounting software under the right categories. This is done through the auto-categorization and expense mapping rules of the system.