Virtual cards were created around 10 years ago to replace costly and inefficient payment methods between companies and vendors. Today, more and more small businesses are turning to virtual checks because they provide added security, ease of use, and cash back.
Right now, virtual card usage is growing around 10 percent a year with no signs of stopping. Some estimates suggest that virtual card spending is expected to pass traditional payment methods by 2021.
Curious about what virtual cards can offer for your company? Here are three reasons small B2B businesses are opting for virtual cards as their preferred payment method:
1. Extra security
Traditional payment methods present numerous security challenges for small business owners, ranging from check fraud to stolen bank account numbers. Instead of sending out a check for a vendor’s invoice, virtual cards provide with you a 16-digit card number that is only good for a single transaction and select dollar amount.
Even if a thief were to magically obtain one of your virtual card numbers, they would be unable to use it. Each transaction is tied to a unique card number between you and your vendor, making tracking payments and identifying problems a breeze.
2. Nothing gets lost in the mail
Using checks as your sole payment method can be extremely time consuming for both you and your vendors, especially if checks get lost in the mail or delivered to the wrong address.
Instead of waiting around, hoping that your check is delivered, virtual cards eliminate this stressful waiting process and give you the peace of mind you deserve. Payments are instantaneous, meaning that both you and your vendors can move on quickly to your next project or order.
3. They give you cash back
Running a B2B business is full of less-than-ideal costs and payment processes. For this reason, many companies are turning to virtual cards to not only cut down on overhead costs associated with traditional payment methods, but to benefit from potential rebates.
Much like a cash back credit card, your B2B business can get cash back on qualifying transactions. With each payment, your organization will earn rebates through using virtual cards to pay vendor invoices.
Thinking about making the switch to virtual cards at your B2B organization? You’ll never look back due to the ease of use and improved security. The cash back offering doesn’t hurt either. To get started, contact our team at Paybacks to learn more.
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