Virtual cards protect your primary account by generating a digital-only card with a card number, expiry, and CVC instantly available within a secure platform. These can be one-shot ‘burner’ cards for a miscellaneous purchase or long-life cards to pay for subscriptions.
To get a virtual business credit card, you first need to apply for a physical business credit card. Then, log into your account, create a new virtual card, choose your settings, download the card issuer’s smartphone app, and then start using your card.
Yes, virtual business credit cards are 100% legal. In fact, they are much more secure than traditional cards because you can create one-time use credit card numbers and turn them inactive after making a purchase. They become invalid after one use, which makes them useless to hackers. Alternatively, you can set up virtual business credit cards for your team so they don't need to wait for a physical card in the mail and can start making online purchases as soon as possible.
Here are the benefits of virtual credit cards for business:
- Safer money. Every virtual card comes with a maximum credit limit that you decide, so no vendor can draw more of your credit than you allow.
- Less fraud. Virtual cards protect you from unexpected charges with the capability to assign a card to each merchant, team, or individual, and deactivate the card in one click from your account.
- Easy monitoring. You can see all of your virtual cards in real-time and monitor how much money is being spent on one screen using a spend management tool.
- Freeze cards. Every virtual card is unique, so you can freeze all activity on any one of them and leave everything else to operate smoothly.
- Instant usability. If you know how to use a regular credit card online, then you know how to use a virtual card. Employees can start using them without any training.
- Single use. Make a purchase as a one-off or for a specific project, and the card can vanish instantly, never to be used again. Protecting your money from ever being accessed with those details.
Virtual business cards have a different 16-digit number than your physically issued card, so they can’t be traced back to your physical card. You can also cancel them instantly from your online account and set them up for one-time use, which prevents security risks and fraud.
Virtual business credit cards can last as long as you need them to. From one purchase to one month or up to two years. Set them up to suit your business needs. They come with custom spending limits, fraud protection, easy deactivation, and guardrails to prevent overspending.
You cannot get cash from a virtual business credit card. They are a vehicle for issuing your team cards, setting limits, reducing fraud, and making one-off purchases without the security risk.
The number of times you can use a virtual business credit card depends on how you set it up. It is a randomly generated number associated with your primary credit card account and can be used for one-off purchases or for up to two years after it is issued.
Most virtual business credit cards can be used in all digital transactions. However, it comes back to how you set up your account. You may set up unique virtual cards for each merchant so that you don't expose your business to fraud if that merchant is compromised. In this instance, you won't be able to use the card anywhere other than with that merchant. However, if you are simply issuing a virtual card to someone in your team, they will be able to use it wherever they need to.