The Benefits of Going Virtual With Corporate Cards
Take a closer look at virtual cards and how they’re transforming business spending.
Companies are going digital like never before, and a large majority of decision-makers now prefer online to in-person transactions.
Adding virtual cards to your business banking suite is a great way to bring your team finances online and up to speed in a way that’s safe, easy, and automated while retaining full control over company spend.
In this article, we review the benefits of virtual corporate cards, ways a virtual Rho card might serve your business, and how companies can use contactless payment to minimize risk and maximize rewards.
What are virtual cards for business?
In many ways, virtual corporate cards are just like the physical cards you use every day. Like their traditional counterparts, they come with a unique card number, CVV code, and an expiration date that can be used to make purchases and settle bills online.
But a couple of features set virtual cards apart.
With virtual corporate cards, you never have to worry about carrying around—or tracking down—a physical card to make a payment. And unlike physical cards, which take days or even weeks to order, process, and receive, a virtual card can be issued and used in seconds.
Instant access makes virtual cards for your business quick and convenient for any type of payment. Plus, there’s no learning curve. You can complete online transactions just as you would with any other card.
Below is a breakdown of how virtual corporate cards compare to physical corporate cards.
How do you use a virtual Rho card?
On Rho's modern banking platforms, virtual corporate cards are free, unlimited, and instant. That means you can issue a Rho card to any employee, entity, or expense channel and start using it right away.
Your virtual card number is stored safely and securely on Rho’s digital banking dashboard, so you can retrieve and apply it at any time. It can also be added to a mobile wallet like Google or Apple Pay for fast, easy in-store or online payments.
How many Rho cards you distribute and what you use them for is entirely up to you and your business.
Internally, you can assign virtual Rho cards across individual team members, departments, or projects.
Externally, virtual Rho cards can be a powerful tool for segmenting payments and automating accounting across recurring expenses, vendors, or client accounts.
For example, you could assign separate cards to vendors and services you use regularly like SaaS subscriptions, ad campaigns through Facebook or LinkedIn, frequent suppliers or contractors, or retail platforms like Amazon.
Rho also syncs directly with your accounting tools, so you can match specific cards to Quickbooks line items to automate your bookkeeping. Integrating your segmented cards and accounting tools allows you to track your company’s spending habits across different channels or compare team performance to departmental budgets.
How do you manage virtual cards?
With a limitless supply of virtual cards for business, you’ll want robust rules in place to ensure cardholders are making only authorized charges within a fixed budget.
This is why Rho’s virtual cards come with built-in, customizable controls and digital receipt uploads, allowing you to tackle your finances safely as a team. You can set precise category restrictions by expense type—such as SaaS or travel—and introduce unique limits for each cardholder.
Virtual Rho cards can be adjusted or canceled as needed, and the activity on each card is monitored in real-time on a centralized dashboard, adding an extra layer of transparency and accountability.
Since managers can see charges as they occur, there’s no need to spend hours chasing employee receipts or typing out clumsy spreadsheets. With Rho, it’s clear who’s spending, where, and on what.
Are virtual cards secure?
While some may question the safety of a card you can’t see, virtual cards actually offer more security than traditional options.
Since each virtual card functions independently, other channels aren’t affected if a single card is compromised.
Compare this to the old way: If fraud is detected on a physical corporate card or one goes missing, it has to be canceled, and it takes at least 3 to 5 business days to get a new one. Managers also will have to track down and update card details for every employee, vendor, and service linked to that account, potentially disrupting important projects.
With a virtual corporate card, if any threats are detected, you can cancel the card, issue a new one, and update associated channels in a matter of seconds with no impact or inconvenience to your spend campaigns.
Lastly (and maybe obviously), physical credit cards can be misplaced or stolen, whereas intangible ones can’t. With virtual cards, you literally have nothing to lose.
How can a virtual card boost my business?
As you analyze your corporate finances and assess cash flow priorities, you can turn a virtual card for business into a working capital solution unlike any other.
With the Rho Card, your credit terms are adjustable each and every quarter. You can choose to boost your margins and optimize cash back (up to 1.75% with the one-day card) or maximize float by extending your repayment period, depending on your immediate goals.
As our economy grows increasingly cashless, more and more suppliers are accepting cards to settle their invoices. It’s worth checking with all of your vendors to see if they allow card payments. Then, coordinate with your AP managers to ensure you’re making the most of your cash back and meeting your working capital needs.
What about physical cards?
If you miss your plastic, don’t despair. Virtual cards are just one piece of the business banking puzzle.
At Rho, we can issue both virtual and physical cards In fact, our cards are designed as part of our greater business banking suite and work in tandem with our other solutions, including our commercial banking platform, our market-leading global payment options, and our AP features.
The trick is to find the combination of banking tools, cards, and services that work best for you and your business, so you can tackle your finances on your terms.
Virtual cards are a simple, secure way to upgrade your corporate finances, work as a team, automate your accounting, and keep up with the accelerating world of digital commerce.
If you’re looking to get started, Rho’s virtual corporate cards offer an easy way out of the gate.
Visit our corporate cards hub to read how our virtual and physical cards work with our greater business banking suite, including our commercial banking services, global payment options, and integrated AP tools.
Or chat with our expert team to learn what our corporate cards can do for you.