What is a virtual credit card? An introductory guide.

This comprehensive guide explains virtual credit cards, how they work, and why they’re valuable to your organisation’s payment strategy.

Tradeshift’s Guide to Secure and Convenient Business Credit Cards

Introduction to Virtual Business Credit Cards

In today’s digital-first world, businesses and individuals increasingly prioritise secure, convenient, and trackable payment methods. Virtual credit cards—digital payment solutions that offer an extra layer of security—are quickly becoming an essential tool for modern business transactions.

But what exactly is a virtual credit card, and how can it benefit you or your business?

In this comprehensive guide by Tradeshift, we explain virtual credit cards, how they work, and why they’re a valuable addition to any organisation’s payment strategy.

What is a virtual credit card?

A virtual credit card is a digital payment card, typically linked to a primary credit card or bank account, that allows you to make secure online and in-app purchases.
Unlike a physical credit card, a virtual credit card can be generated for a single purchase or for a multi-use purpose, like a project with a budget or a monthly subscription.

Whether the card is used for a one-time purchase or an ongoing monthly subscription, this single-purpose feature provides enhanced security, as your primary account details are never shared with vendors or compromised during the purchasing process.

How does a virtual credit card work?

Virtual credit cards work the same way as traditional, physical plastic credit cards but with enhanced data security, transparency, and control features. Here’s a quick breakdown of how a virtual card functions:

  1. Generate a Card: Virtual cards are derived from a single physical card and can be easily created.  
  2. Set Payment Limits: You can set spending limits and expiration dates and even capture accounting codes.
  3. Single or multi-use: Virtual cards can be created for one-off purchases or for multi-use for a recurring subscription payment or a project that requires a budget.
  4. Make a Secure Payment: Use the virtual card number just like a physical card to complete your transaction online or over the phone.

With each use, the virtual credit card number protects your real account details from fraud or unauthorised charges. It can be set to automatically expire after one use or cut off after reaching a defined spending threshold.

Why use a virtual credit card? What are the key benefits

Businesses and individuals are opting for virtual cards for many reasons. Here are some of the top benefits:

    • Enhanced Security: Virtual credit cards protect your primary account information by providing a unique number for each transaction.
    • Improved Expense Control: Set spending limits and monitor your transactions in real time.
  • Approval Hierarchies: Extend pre-approved purchasing power to employees or contractors
  • Streamlined Online Transactions: Simplify and speed up payment processes, especially when working with multiple vendors.
  • Better Fraud Protection: Minimise the risk of fraud and identity theft by using single-use card details.

How to get started with virtual cards on Tradeshift

Getting started with virtual cards on Tradeshift is easy, and best of all, it’s free:

  1. Sign Up: Join Tradeshift to access our full suite of digital payment solutions.
  2. Integrate: Easily integrate virtual credit card payments into your existing procurement workflows.
  3. Manage Payments: Tradeshift’s virtual card solution generates, controls, and monitors card usage across your organisation.

With Tradeshift, you can empower your business with a secure, flexible spend control and payment solution that drives efficiency, reduces fraud, and saves you time.

Go

Virtual Credit Cards for Businesses: Tradeshift Go

At Tradeshift, virtual cards represent an easy-to-adopt solution that supports both procurement and finance. Tradeshift's virtual card solution, Tradeshift Go, helps companies of all sizes control spend, reduce procurement and accounts payable costs, and ensure risk-free payments.
By leveraging virtual cards, companies can minimise the risks associated with traditional payment methods, simplify vendor management, eliminate expense reimbursement headaches, and gain better control over spending.

Get started

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FAQs about virtual credit cards

Are virtual credit cards safe for online payments?

Yes, virtual cards offer one of the safest ways to make online payments, thanks to their one-time-use card numbers and the ability to set custom spending limits.

Can virtual credit cards be used for recurring payments?

Yes. Tradeshift allows businesses to generate cards whose spending limits automatically refresh at a frequency of your choosing. This makes it ideal for subscriptions or a weekly in-office breakfast.

Can I use a virtual card for in-store purchases?

Generally, virtual credit cards are designed for online, over-the-phone, and in-app purchases, but some merchants may offer to enter a virtual card number at point of sale.

What does it cost to use virtual credit cards?

There is no cost or financial obligation to get started with Tradeshift Go. Your business credit card provider provides this complimentary benefit.

One quick call can unlock cost savings & business efficiencies to help your business grow.

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