How To Create Virtual Credit Card(vcc) For Free

[Abigail Tyrie]

Virtualcards represent a significant advancement in smart company spending. They offer businesses a more secure and trackable method for making online payments. Virtual cards let employees pay for the things they need right from their desktop. They're quick, completely safe, and far easier for finance teams to manage.

A virtual card works like a prepaid gift card, with a set amount of money loaded onto it. They only exist online, but they have the same information as a physical card such as a card number, expiration date and a CVV code.

Each card can be either 'single use' for enhanced security or 'recurring use,' such as for monthly subscription renewals. Employees using these cards can make payments with the same speed and ease as a traditional corporate card.

As we've written before, there are countless problems with the company card. And all of these stem from the basic realisation that most business credit cards weren't actually built for businesses in the first place. They're really just the same as personal credit cards, even though businesses and individuals spend in quite different ways.

According to Alex Maklakov (CIO at MacKeeper), online spending is turning the classic company credit card into a security risk. From buying plane and train tickets, booking hotel rooms and renting vehicles, to subscribing to SaaS software, online payments are numerous and varied.

Not to mention the fact that cards get shared around the office without proper oversight. Employees may have the details on a Post-It or saved in an email, which is nobody's idea of "safe and secure."

But according to Experian, "disposable card numbers can add an additional level of security in an age when retailer data breaches seem to be commonplace. If a hacker manages to get hold of your virtual credit card information, you can simply cancel that virtual card without needing to close your entire account and get a new one".

Because there's only one (or three, or five) company cards, it's not clear who has made purchases. Nor who approved each purchase in the first place. Which means that often, at the end of the month, your finance team or office manager spends hours combing through the credit card statement to get to the bottom of it all.

The difference between the two is pretty simple. Single use cards are used just once. These are wonderful if you're making an Amazon order on a one-off basis. But they're not great if you have a subscription payment, because you'll need a new card every month.

Recurring use cards are still different from your company card - they have their own account details. So fraud risk is still low. But the card will exist for the length of your subscription, so you'll keep payment for your tool or service for as long as you need it.

Some providers only give you access to one virtual card. It's nice not to have to use your main company card to make payments, but you're still sharing the same details out over and over again. This kind of defeats the purpose.

You want to be able to create new virtual cards for every payment you make. That way, if one of your cards is compromised (the account details are hacked), you only have to cancel that one virtual card. All your other payments are safe and secure - even the recurring ones.

"The key to an efficient accounting workflow is in the integrations," according to Quadient. "The most comprehensive workflow will include a fully integrated payments process. With virtual credit cards, payments can be approved and released to vendors directly from within your accounts payable automation software".

Reconciling expenses is costly and time-consuming. And if you're going to be creating dozens of virtual cards for online payments, this just leads to more moving parts. That means more ways in which things can go wrong at tax time.

A good spend management tool will not only issue you virtual cards, but also track every payment made within its own platform. So you're not relying on your staff to report every payment, and your finance team has a full record of how the money has been spent.

The most simple option is just to require authorisation before the payment can go through. The team member sets up the payment, creates the card, and then you get a notification to approve (or deny) it before it can be executed. Good tools let you do this through the central dashboard, and you can give this authority to team leaders and managers.

These same tools also let you add more customisation. For example, your Head of Sales may be authorised to spend up to 150 without approval, whereas a regular salesperson may only have access to 100. And in either case, if they want to go over these limits, they'll need someone higher up to confirm.

As things stand, companies can choose between two main providers to get a virtual payment card: banks and SaaS startups like Spendesk. And these two options generally let you do quite different things.

Opting for a banking establishment means the head of the company and the administrative and financial director can use an online tool that generates virtual cards. Information (card number, expiration dates, CVV code) can be given to employees so that they can make online purchases.

If your aim is to enhance your security and control over spending while saving time and effort for your company, then virtual cards are the perfect solution. The best way to obtain them is through a spend management platform like Spendesk.

A virtual credit card (VCC) is a unique 16-digit number that is associated with your bank account. Think of it as a regular credit card, but without the physical format. You can use it to shop online without exposing your actual credit card information to the merchant.

If the feature is available, you can request a virtual card from your credit card issuer. The company will assign a randomly generated card number, expiration date, and a security code tied to your existing account. You can make online payments by entering the VCC number instead of your real credit card information, and the transaction will show up on your bank statement as if you used your actual credit card for the purchase.

This payment method is primarily designed to mask your real credit card details and help protect you from data breaches. The virtual card number you enter at online checkout appears to the merchant as a regular credit card number but keeps your account information safe. In case of a cyberattack, the hacker will only have access to your virtual card number, not your actual banking information.

A virtual credit card is a stand-in for your physical card and is associated with your account the same way a digital card is, but their numbers differ. The virtual credit card number is a unique randomly assigned 16-digit number that comes with its own CVV code and an expiration date and is essentially a temporary card number designed to protect your online and over-the-phone payments. Virtual cards give you the option to generate different numbers per transaction or merchant, depending on the customization options

Credit card misuse has marked a significant spike as of 2020, with almost 390,000 people becoming victims of credit card fraud that resulted in fraudsters using stolen credit card information to open new accounts. While the primary purpose of a virtual credit card is to shield your account information from prying eyes and potential misuse, it has many other advantages, such as:

You can typically set a spending limit and the period during which the funds can be used. This is especially useful if you want to use the card to pay for a recurring subscription. For example, if your streaming service costs $10 a month and you set a $10 spending limit on your virtual credit card, any attempt by the merchant to sneak in an additional fee or overcharge the transaction will be immediately declined.

With the option to set an automatic closing date for your virtual credit card, it might even expire before the hacker can take advantage of it. The inability to use the card beyond the spending limit and particular online store you tied it to is another advantage of virtual cards over traditional credit cards. This is an important factor to consider, given that, according to a recent study, global loses due to credit card fraud is estimated to grow over $10 billion over the next three years.

Virtual credit cards are more convenient to use than physical cards when making payments online. At checkout, all you need to do is copy-paste the virtual card number in the designated field without having to search for your plastic credit card and typing in the details manually each time. Some services also offer tools or browser extensions that auto-fill your virtual credit card number, saving you time and effort. You can also create virtual cards on the go using a mobile app and receive notifications any time a transaction is made, enabling you to track payments in real-time.

While virtual credit cards are primarily designed for online or over-the-phone transactions, you might be able to use some of them in physical stores. You would have to tie the card information to a digital wallet, such as PayPal, Apple Pay, or Google Pay. After that, you typically need to:

A similar issue can happen if you paid for airline tickets using your virtual credit card as the company might require the card you used for the purchase as proof of identification. If you plan to purchase your airline tickets with a virtual credit card, it's prudent to ensure your passport, photo ID, or airline tickets are enough for boarding.

Besides these limitations, virtual cards are exceptional for quick and secure online shopping. While you can get virtual cards from many financial institutions, not all provide the same benefits and level of security. You can sign up for a Privacy Virtual Card to enjoy safe and seamless digital purchases.

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