Virtual cards are the future of business expenses, with a projected market value of $37.5 billion by 2028. Different types of virtual cards cater to specific business needs, including corporate, expense, and travel cards.
In this blog, we’ll explore how the different types of virtual cards for businesses can benefit your business.
Companies provide business cards to their employees for their business-related expenses. Because when they travel for business purposes, they incur many expenses for which a company issues its card with a pre-determined limit.
Traditionally, companies issue credit cards, but now the time has changed. In the virtual world, businesses issue virtual cards that their employees can use from their phones with many additional benefits and value-added features.
Now let’s take a closer look at corporate cards. Corporate cards are virtual payment cards typically issued by a business’s bank or financial institution. A corporate card is issued to a company based on its financial health and credit history. So, corporate card issuers typically require access to the following:
- the company’s most recent audited financial statements
- information on the organization and structure of the business
- tax records
These cards are designed for general company expenses, such as office supplies, equipment, and travel. Here are some of the key benefits of using corporate cards for your business:
- Corporate cards can help you streamline expense management and reduce administrative tasks.
- You can get detailed expense tracking and reporting. This can be integrated with your company’s accounting and expense management software to simplify financial processes.
- It can reduce paperwork and make reconciliation and compliance tasks easier.
So, your business can use a corporate card for various office expenses. For example, your employees might use it to purchase office equipment and supplies or to pay for travel expenses when attending a conference or training event.
A corporate card can manage all business-related expenses, including hotel bookings, client meals, flight tickets, etc.
If your company is small or recently established, you might not have a credit history and only have access to a few financial services. For such organizations, their credit score is a major barrier, making obtaining a corporate card with a decent limit difficult.
However, an expense card eliminates all these problems and sets spending caps based on the funds deposited onto the card. These are virtual cards specifically designed to help businesses manage employee expenses. The idea behind expense cards is to:
- give employees an easy way to pay for expenses related to their job duties
- eliminate the need to go through a cumbersome reimbursement process
Here are some of the benefits of expense cards for your company:
- You can have a streamlined expense management process using virtual expense cards, eventually reducing administrative costs.
- Expense virtual cards offer a level of control over employee spending.
- These cards can help prevent fraud or overspending.
So, you could provide expense cards to employees who need to purchase supplies or equipment for work. Or, your sales reps may use these cards if they frequently travel and need to pay for things like meals, transportation, and lodging.
Wouldn’t it be great to get something in return when you regularly charge a lot of business expenses to a credit card? Travel cards are specifically designed to help companies manage and control travel-related spending.
These cards can be especially beneficial for businesses that have employees who frequently travel for work, such as sales teams or consultants. With travel cards, your business can enjoy many benefits:
- You can set spending limits and restrictions on specific merchant categories, such as hotels or rental cars.
- This ensures that your employees spend company money on approved travel expenses.
- Your employees can easily book flights, hotels, and rental cars without having to worry about using their personal credit cards and submitting expense reports later.
For example, if you have a consulting firm, your consultants might use travel cards when traveling to client sites. As a result, they’ll be able to book flights and hotels without paying out of pocket. And your business might as well earn air miles, points for hotel stays, and other rewards on those expenses.
|Features||Corporate Virtual Card||Expense Virtual Card||Travel Virtual Card|
|Purpose||Used for general company expenses, such as office supplies, equipment, and travel||Used specifically for employee expenses, such as meals, transportation, and lodging||Used specifically for employee travel expenses, such as airfare, hotels, and rental cars|
|More Specific Use Case||Businesses with substantial credit history||Small businesses with no credit history||Businesses wherein employees frequently travel for work|
|Issuer||Typically issued by a business’s bank or financial institution||Issued by a business’s bank or a third-party provider||Issued by a business’s bank or a third-party provider|
|Reporting||Offer detailed expense tracking and reporting for company expense management||Offer detailed tracking and reporting of individual employee expenses||Offer detailed tracking and reporting of employee travel expenses|
|Integration||Can be integrated with accounting and expense management software to streamline financial processes|
|Security||Offer increased security features, such as individualized card numbers and transaction controls, to reduce fraud risk|
Virtual cards could be a game-changer for your business. You can streamline your company’s expense management, reduce administrative tasks, and provide greater control over employee spending with Payit’s Letsgo Card.
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