Virtual Cards: Key Benefits Explained

Introduction

Are you a hardware-centric, procurement-heavy company looking for ways to improve your spending process? One solution could be providing your trusted employees with a corporate virtual card. This card allows employees to make online purchases while providing automatic tracking to ensure expenses stay within budget.

In this blog post, we will explore the benefits of virtual purchasing cards, including increased security, better spending visibility, and empowered employees.

What is a P-card?

A purchase card is simply a business virtual card assigned to an employee that enables them to pay for items they need to do their jobs, complete projects, and drive your company’s success.

What is a virtual card?

A virtual purchase card is typically pre-loaded with a specific amount of money, and employee purchases are deducted from the card’s balance in real time. Virtual cards only exist online; however, they involve the same data as a physical debit or credit card.

P card vs Credit Card?

Credit cards allow partial payments. In contrast, purchasing cards, or P-cards, require you to fully pay your balance each month.

How do virtual purchasing cards work?

Employees can shop online as they would for personal purchases, using their assigned virtual card number at checkout.

Virtual cards improve purchasing workflows by streamlining:

• Subscriptions and renewals on SaaS agreements
• Business expenses, such as travel and hotel costs
• One-off expenses, such as hardware parts, electronic components, office supplies etc

Is managing financial security important to you?

Online purchases can expose corporate credit card information to thieves. Disposable virtual card numbers can enhance security since you can cancel specific cards without the hassle of closing accounts.

Want better spending visibility?

Tracking spending becomes more complex as organizations grow. Virtual credit cards can simplify this process, allowing visibility over who makes purchases and how much they spend.

Empowered employees do the best work.

Virtual cards empower employees by allowing them to quickly purchase necessary items without waiting for approvals.

Integrating virtual cards with your purchasing platform

Integrating virtual cards into a procurement software like ControlHub streamlines purchasing processes and enhances control.