Virtual Card Fraud Prevention: The Role & Use Cases

As digital payments grow within the B2B space, so do the risks of fraud, requiring robust security measures. While traditional card transactions have been the norm for handling subscriptions and expenses, they are increasingly vulnerable to cyber threats. In 2022 alone, 36% of organisations experienced card fraud. This article explores how virtual cards, with their advanced security features such as tokenisaton and dyamic CVV, as well as enhanced control mechanisms, offer a superior alternative to traditional plastic cards in preventing fraud and misappropriation of funds.

The top fraud vulnerability for small and medium-sized businesses (SMBs) is cheque-based fraud. Forging signatures and counterfeit cheques accounted for 47% of industry losses in 2018, totalling $1.3 billion. Despite the fact that digital payments help to minimize these risks, traditional business prepaid or credit cards are not immune from fraud. In contrast, virtual cards are a robust alternative to their physical counterparts when it comes to combating fraud.

A virtual card is a digital payment tool designed for businesses to make online payments. They come in a digital format, which can be managed through a mobile app or online portal. Due to their unique features, such as tokenization and dynamic CVVs, virtual pre-paid business cards are highly adaptable for modern businesses and highly resilient to fraud.

Virtual cards use tokenization to replace sensitive data with tokens. This makes it incredibly challenging for cybercriminals to access card information, providing an additional layer of security

The dynamic CVV changes regularly, adding an extra layer of complexity for fraudsters. The dynamic element significantly improves overall security by making it difficult to hack or reuse card details.

Single-use virtual cards can be used for one-time transactions, making it impossible to access company funds with the same card details again. Transaction limits and merchant restrictions will also significantly reduce the risk of unauthorized transactions.

With a completely digital setup, virtual cards aid CFOs in managing company finances as well as improving control over budgets and protecting them against fraud.

With virtual cards, CFOs can control spending and payments remotely through a web portal or a mobile app. Within a few clicks, cards can be issued for specific projects and teams, and topped up, frozen or deleted remotely. This functionality eliminates the risks and hassle associated with lost or misplaced company cards or suspicions of card fraud. Misplaced physical cards or suspected fraudulent activity expose company funds to unauthorised use as well as negatively impacting employee morale.

Unauthorised transactions can go undetected for weeks, and blocking and reissuing cards with traditional banks is usually a lengthy process that involves back-and-forth calls and contracts. The delays will affect the company's operational efficiency and hurt its bottom line. The ability to issue virtual cards instantly and with unlimited issuance capabilities enhances business continuity while minimizing fraud and loss of profits.

Customizable rules and restrictions on virtual cards enable spending to be aligned with company policies, preventing unauthorized expenditures and reducing fraud risk. Dedicated cards can be issued for specific teams, projects, or even single purchases, allowing the CFO to control who has access to company funds, how much can be spent, and where it can be spent.

Giving employees virtual cards not only minimizes the risk of the cards getting lost or misplaced but also ensures employees are adhering to company policies by monitoring their spending. Rather than dealing with expense reimbursements retrospectively for employee out-of-pocket expenses, you can give them access to virtual cards with specific restrictions and controls that ensure all expenses are compliant.

A virtual card makes it easy to visualize spending due to the online access and reporting features. As opposed to traditional plastic cards, which often rely on paper statements, real-time insights help CFOs identify unfamiliar charges and potential fraud activities quickly.

Fyorin’s commitment to streamlining SMB operations at a global scale is complemented by its commitment to give them tools to better manage their budgets and protect their funds. With our virtual cards, you can make payments online, set limits, control payments, and minimize fraud risk.

Online dashboard - Fyorin provides an online dashboard for managing virtual cards. Using the centralized platform, you can issue unlimited cards in multiple currencies and operate globally with unparalleled flexibility.

API for high-volume - Businesses with high transaction volumes can integrate Fyorin's API seamlessly with their systems. By doing so, transactions at scale can be made efficiently and securely.

Set limits and controls - The virtual cards offered by Fyorin include limits, controls, and the ability to remotely freeze, delete, and top up the cards. Using controls and rules, you can tailor security measures to your business's needs.

Budget control with sub-accounts - By assigning virtual cards to sub-accounts, Fyorin helps businesses better control their budgets. The granular approach allows you to ensure that spending is aligned with the company's budget constraints and spending policies.

Our cards come with 0% transaction fees and, on top of that, we offer you a cash back every time you spend.If you’d like to protect your company funds against fraud in online card payments and take better control of your budget, request your Fyorin virtual card today by sending us an email to [email protected]