We take a dive into why you shouldn’t give corporate cards to your employees in 2021. We tell you why virtual cards are miles better. And, it’s not just for security.
Corporate cards have been around for ages. Since Bank of America launched BankAmericard, the first modern credit card, in 1958, not much has changed with cards. But the world has changed a lot - the internet has emerged, ways of working have changed and there are things that we pay for today that were never even dreamt of in 1958.
We are in 2021. Technology has improved, needs have shifted and transparency is every day more important in most modern companies. And this (plus COVID19 and remote work) are driving a natural shift from corporate physical cards to something more efficient, safer and easier to manage: virtual cards by fintech providers. So why is this happening?
First of all: what are virtual cards?
As the name suggests, virtual payment cards are debit or credit cards that are created entirely online. They are randomly-generated and act in the same way traditional credit cards do—without the need for a physical card. They’re Mastercard, Visa, or American Express, and are accepted anywhere credit cards are usually accepted.
For example, Cledara’s Virtual Cards are provided by Mastercard.
But due to the nature of Virtual Cards, there are some striking differences that make them clear winners for company use. And we wanted to show you. So here are the most notable differences you need to know in virtual vs physical cards.
1. Virtual cards are better suited to fast-paced companies
With Virtual, it’s possible to create cards on-demand and instantly, with 0 card delivery time. That’s a massive win in terms of speed compared to physical cards, especially when everyone is working remotely. Plus, the issue process creates a lot less friction than physical.
In addition, it’s possible to have many cards for the same account if you’re using Virtual Cards technology. Something that, again, helps reduce friction for companies. Because creating an account per card is not ideal for managing liquidity.
2. Virtual cards are safer
Virtual cards reduce safety risks considerably. To start, Virtual Cards can’t get lost, that’s a fact. Also, they can’t get compromised the way physical do. Antitheft RFID wallets? Forget about all that nonsense. We are in 2021, there is no need for that.
Also, Virtual Cards like Cledara’s support one-click cancellation. So if somebody leaves the business or a card gets compromised, just hit a button and the vendor will no longer take payment.
And since Virtual Cards are easy to create, you can have a different card for each vendor. So if one card gets compromised, all the other subscriptions are safe. Just renew that card in one second and get going
3. Virtual cards are easier to manage
Physical cards are a pain to manage. You never know who’s paying for what, and you know about payments after they happen, which is usually not very helpful. With virtual cards, you can enable lightweight approval processes to control the spending, before the payments take place.
From a controlling perspective, it is also a no brainer.
4. Virtual cards come with spending analytics
If your company migrates to a Virtual Cards provider, then suddenly spending analytics are taken to the next level. That’s something great for finance teams because this enables them to clearly see the team’s spending and can know where to cut costs or increase budgets. It’s also a direct way to spot unused or duplicate software.
It’s clear that analytics like Cledara’s change the way companies manage their SaaS spend for the better.
5. Physical is old-fashioned
This might not be for you, but it’s hard to have a 2021 company image when your employees use the same payment methods as people did thirty years ago. The era of physical corporate cards is at its closure. The sooner you adopt Virtual, the better for your company.
So, what are you waiting for?
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