Virtual cards work exactly like physical cards - they can be prepaid or debit (connected to your current account) with the added benefits of extra flexibility, control and security when it comes to managing budgets and spending. The growing adoption of virtual cards globally underscores their effectiveness as a payment method for both business expenses and employee transactions - Juniper Research projects that the total volume of virtual card transactions will reach 175 billion by 2028, up from 36 billion by 2023.

The cards can be customised to suit individual employees or teams, allowing companies to align spending with specific projects. By regaining visibility and control over allocated budgets, organisations can mitigate overspending and transform expenses into value-generating opportunities.

Compared to traditional methods, virtual cards provide finance teams with unparalleled budget control features.

• Setting Limits: Precise spending limits can be imposed on different categories, projects, or teams, ensuring adherence to predefined budgets and preventing unauthorised overspending. You can also opt to use a prepaid card and load the specific amount set out in the budget for a specific purchase. This streamlines the approval process and keeps the project or business operation on track.
• Documentation: Virtual cards generally come with online dashboards and/or mobile apps for streamlined expense management, which let employees upload receipts and invoices on the go. Fyorin, for example, allows you to make documentation upload mandatory and block the card if no receipts are attached after a set period. The feature reduces the time spent chasing invoices at the end of the month and streamlines expense reconciliation.
• Real-time Visibility: The same centralised dashboard provides real-time insights into spending across departments and teams, enabling prompt adjustments to limits and proactive management of potential spending issues.

Virtual cards streamline resource allocation processes - once the budget is approved you can top up the card with specific amounts. This eliminates the need for repetitive approvals on every purchase and facilitates timely access to funds for specific projects or teams, without slowing down business operations.

• Remote Top-ups: Finance teams can remotely load additional funds onto virtual cards upon request, minimising delays associated with traditional bank transfers and ensuring uninterrupted business operations.
• Merchant or vendor controls: Virtual cards are equipped with special controls to restrict transactions from specific merchants. This way you can protect your business from overspending or unauthorised purchases and keep the allocated budget within its intended use.

In addition to the above, virtual cards safeguard your funds with enhanced protection mechanisms against fraud and loss.

• Fraud Protection: Advanced security features such as tokenization and dynamic CVV codes make virtual cards a safer option for online transactions, reducing the risk of unauthorised individuals getting access to card details and misappropriating funds.
• Loss Mitigation: In the event of loss or misplacement, traditionally used plastic cards can be a hassle. Blocking the card and issuing a new one requires the involvement of the bank, which may take days or even weeks, and may slow down regular business operations. Instead, virtual cards can be promptly destroyed and replaced remotely, minimising disruptions to regular business and safeguarding the funds.
• Overspending Prevention: Apart from the aforementioned vendor controls and limits, virtual cards have another feature that gives greater control over unauthorised spending - single-use cards. These can be used for trials and one-off purchases to prevent recurring payments.