What Banks Need to Know About Virtual Cards

Because of their popularity checks continue to dominate usage among middle-market businesses despite having the highest amount of fraud of any payment method. Banks are beginning to offer virtual cards because of the extra security they provide to their business customers. These same forward-thinking banks are also rapidly adopting accounts payable automation equipped with virtual card technology to diversify the products they offer to their middle-market commercial clients.

What is a virtual card?

A virtual card replaces your 16-digit credit card for a single-use, randomly generated number that can only be charged once, for one specific amount. Cyber criminals are “defanged” with this model because there is no need to “freeze” an account or replace a compromised number. And unlike prepaid cards no funds need to be loaded onto the card in advance.

Benefits of virtual cards

Virtual cards offer several things:

  • Easier reconciliation as each payment is assigned a unique number for tracking payments. Reviewing entire bank statements is a thing of the past.
  • Improved flexibility in the timing of virtual card payments. A business can assign a virtual card number to be paid on a specific date and for a specific amount, enhancing cash flow control.
  • Increased cash-back rewards for your business. Virtual cards have all the benefits and rewards that regular credit cards have.



How do virtual cards benefit my bank?

Out of 364 million credit card accounts, only 15 million are for business. Banks can increase their fee income and interchange revenue by offering virtual cards all while simultaneously providing enhanced security and visibility of an ACH transfer.

As more and more businesses automation their accounts payable so too does the rise in virtual card use increase. Your fintech partner can assist you in determining which of your vendors accepts virtual cards allowing the AP automation process to be that much easier.

Your bank credit card program can benefit from virtual card use through increased fee income, reduced fraud, and improved customer business operations.


We're transforming accounting by automating Accounts Payable and B2B Payments for mid-sized companies. Our award-winning solution has helped over one thousand businesses transform accounts payable from a source of inefficiency and fraud risk to a secure and strategic profit center that provides visibility into key cost drivers.