Virtual cards as online subscription management software

In 2022 Grand View Research valued the global virtual card market at $13.31 billion and projected further compound annual growth rate of 20.9% until 2030. Virtual cards, renowned for their capacity to provide unmatched flexibility in managing global fleets, crew expenses, and bolstering security measures against fraud, have become a staple in streamlining financial operations worldwide. Despite their widespread use, one of the often-overlooked applications of virtual cards lies in managing business subscriptions. As companies expand, the use of subscription-based apps, software, and tools across departments grows, presenting a challenge for traditional subscription management methods which rely on personal employee cards, company cards and reimbursement forms. This outdated approach not only exposes businesses to financial risks but also entails considerable time and effort in control and reconciliation processes. Integrating virtual cards seamlessly into financial operations presents a solution that combines flexibility with control, eliminating the need for additional online subscription management software.

With CRM, design, marketing, and other tools, it can be difficult to track who pays for what and when. In addition, it's not uncommon for people to enter their card details for a trial, decide against using the platform, then forget to cancel their payment or get blocked from the platform because their card details expired. As a result, you may incur unnecessary expenses, experience disruptions to business operations or struggle to reconcile expenses across multiple departments. Managing subscriptions can become a major headache from a financial operations perspective.

The virtual card addresses all of those frustrations by streamlining online purchases and reconciliation, giving a clear view of all software-related payments. CFOs and team leaders can create subscription cards for all software spend, specific tools, and teams. With an online platform, those cards can be managed remotely - set a recurring top-up to ensure funds are always available for subscriptions, set restrictions and merchant rules for each card, and businesses gain enhanced budget control and visibility.

It eliminates the need for yet another subscription management software and provides a streamlined way to keep track of software expenses. Virtual cards also eliminate the need for reimbursements and out-of-pocket expenses for your employees, saving time and giving you real-time insight into their spending.

As mentioned, virtual cards not only streamline operations, but also reveal unnecessary software expenditures, optimise budget allocation for better profits, and provide some serious incentives. Scheduled top-ups ensure payments are made on time, which promotes good vendor relationships and, over time, improves your reputation, as well as leads to early payment discounts that enhance your financial standing. A number of virtual card providers offer cashback , which is another way to improve profitability. Lastly, your business will be able to minimise operational costs by spending less time on manual work related to expense reimbursements, aggregating fragmented financial data, and reconciling.

Virtual cards run on major card networks like Visa, Mastercard and Discover, providing universal recognition for subscription vendors and a reliable payment option, minimising the risk of declines. Virtual cards offer some unique security and fraud prevention features. The ability to deny transactions for specific merchants, categories, or amounts makes virtual cards a strong defence against unauthorised purchases. Single-use cards and tokenisation with dynamic CVVs further enhance security, making virtual cards a safe and trustworthy option for online transactions.

For software resellers who manage multiple subscriptions for many clients, virtual cards offer unprecedented budget control, spend management, and efficiency, compared to traditional budgeting and financial transactions. With single-use and multi-use virtual cards, resellers can tailor their approach to meet the unique needs of each client. By setting up an unlimited number of cards with specific rules, resellers can ensure smooth operations for clients and hassle-free reconciliation for their finance departments. They can, for example, create a dedicated subscription card or a full wallet for a client so that all payments are made from the same account, on time, and can be tracked and reconciled easily. Software resellers should look out for these specific features when choosing a virtual card vendor:

Does the vendor offer integration with the accounting tools for a touchless reconciliation of transactions?

What are the additional features offered by the platform, such as accounts payable and receivable, that allow the software reseller to manage client subscriptions, send invoices, accept payments and send payments from one place?

What is the maximum number of cards that can be created? Software resellers should be able to create an unlimited number of cards or create them through an API, given the nature of their business.

How much do card transactions cost? Transaction charges should be close to zero given the high volume of transactions.

In addition, the virtual card vendor could offer financial incentives like cashback that could improve the business's bottom line.

Fyorin’s virtual cards offer flexibility, control and convenience needed for an effective and streamlined subscription management. With our solution, Software Resellers and businesses around Europe can manage their software-related expenses and improve their bottom line through:

Card management platform - Create unlimited cards, schedule automatic top-ups, set limits, rules, and tags for easier reconciliation.

Turn costs into earnings with cashback. Our virtual cards have 0% transaction fees and we give you cash back every time you spend.

Card issuance through API- There's no limit on the number of cards you can create, and if your business handles high volumes, you can use an API and integrate them seamlessly into your workflow.

Multi-currency cards - Fyorin virtual cards give you access to multi-currency cards so that you can pay in the merchant's currency and reduce your foreign exchange exposure.

Easy budgeting - You can assign the card to a subaccount for a specific department, software or team to make budgeting and reporting easier.

Ready to request your virtual card and turn subscription headaches into savings without needing a dedicated software for subscription management? Get in touch with us at [email protected]