What Are The Benefits Of Virtual Cards? Digital Wallets For Your Business Explained

Euan Robb
Content Manager at Equals Money
min read
Publish date

What is a virtual card?

A virtual card refers to a digital payment method that allows users to make online purchases without using a physical payment card. It is a unique 16-digit number that is generated by a financial institution and linked to the user's existing account or expense management platform. When making an online transaction, the user enters this virtual card number along with the associated expiration date and security code.

Unlike a traditional metal or plastic card, a virtual card cannot be physically stolen or lost, providing an added layer of security. Virtual cards are typically issued for a specific purchase or for a limited duration, reducing the risk of fraud. Additionally, some virtual cards even allow users to set spending limits or restrict usage for specific merchants or categories, such as gambling.

Overall, virtual cards offer a convenient, secure, and flexible payment solution for online transactions, giving users peace of mind while seamlessly conducting digital purchases.


Benefits of using virtual cards

Using virtual cards offers numerous business benefits that can significantly enhance financial management and security.

Firstly, virtual cards provide budgeting tools, enabling individuals to set spending limits and ensure they do not exceed their allocated budget. This feature is particularly beneficial for businesses or organisations with strict budgets and departmental allocations. Additionally, virtual cards offer extra security measures compared to traditional payment methods. This is because virtual cards are not physically present, eliminating the risk of theft or loss and providing an extra layer of security.

Furthermore, virtual cards often employ multi-factor authentication and can be created solely for one-off purchases, making it more difficult for unauthorised individuals to gain access to the card details.

In terms of subscriptions management, virtual cards provide a convenient solution. Users can easily create virtual cards dedicated specifically to subscription payments. This allows for better tracking and monitoring of recurring expenses, granting individuals greater control over their finances. For online merchants that don't accept virtual prepaid cards, virtual debit cards can often be generated instead, allowing users to still pick a virtual card option for their recurring payments or subscriptions.

Lastly, virtual cards provide the added benefit of instant card creation. Instead of waiting for physical cards to be mailed, users can generate virtual cards almost instantly, making them a convenient option for immediate use.

Spending limits

Setting spending limits for virtual cards is an essential practice to manage expenses efficiently.

As mentioned, virtual cards offer a flexible solution for online transactions, allowing users to control their spending within predefined bounds and caps. Tailoring spending and transaction limits for each virtual card based on specific needs and purposes is crucial for maintaining budget adherence and financial control.

When it comes to booking business travel or making large purchases, setting appropriate spending limits becomes even more important. By customising the spending and transaction limits for each virtual card, individuals can ensure that expenses related to projects, events, and departments align with the allocated budgets. This tailored approach provides a clear overview of the available funds for each specific use, ultimately mitigating the risk of overspending.

By implementing virtual card spending limits tailored to specific uses, organisations can effectively manage their overall budgets. This strategy not only ensures financial accountability but also increases employee autonomy and enables a more transparent approach to expense management. Whether it's project-related expenses, event costs, or departmental purchases, allocating appropriate spending limits to virtual cards is vital for budget control and responsible financial practices.


Digital wallets

Say goodbye to your physical wallet - digital wallets or "mobile wallets" have revolutionised the way we engage in financial transactions, providing simplicity, convenience, and security.

By eliminating the need to carry physical cash or cards, these digital platforms, such as Apple Pay, Google Pay, and Samsung Pay mobile wallets, offer a seamless way to make in-person payments and purchases with virtual card credentials.

As technology advances and smartphones become an integral part of our daily lives, digital wallets continue to enhance the way we interact with money, unlocking new possibilities and reshaping the traditional banking and expense management landscape.

Benefits of using digital wallets for your business

Digital wallets offer numerous benefits for businesses, making them a valuable tool in the modern digital economy.

One of the key advantages is the ability to support loading both virtual and physical cards, providing instant and secure access to funds. This convenience ensures that businesses can make quick and seamless payments, enhancing overall efficiency.

Moreover, digital wallets offer robust card security controls, protecting against fraud and unauthorised transactions. With features like transaction notifications, businesses can stay informed in real-time, mitigating the risk of financial losses. This enhanced security instills confidence in both businesses and customers, ultimately fostering stronger relationships.

Therefore, digital wallets provide numerous benefits for businesses, including secure access to funds, card security controls, and the use of virtual cards for payments in stores. By leveraging digital wallets, businesses can improve efficiency, enhance security, and streamline financial processes, ultimately leading to growth and success.


Contactless payments

Contactless payments have transformed the way we handle financial transactions. This payment method allows individuals to make purchases without the need to physically insert their payment card into a terminal. Instead, users can simply hold their contactless card or mobile device near the terminal, and the transaction is completed wirelessly.

Contactless payments provide numerous benefits for financial management. Firstly, they offer unrivalled convenience. With just a simple tap, individuals can swiftly pay for goods and services, eliminating the need to fumble for cash or enter a PIN. Additionally with the use of digital wallets, contactless payments allow for the use of virtual cards and their credentials to make quick and easy payments in stores.

In conclusion, contactless payments make transactions more convenient, efficient, and secure. With their ability to simplify payment processes and (with digital wallets) enable the use of virtual cards for in-person purchases, contactless payments have become an indispensable tool for individuals seeking to manage their finances effectively. 

Virtual cards from Equals Money

Virtual cards from Equals Money can take a couple forms: Individual cards for transactions associated with a specific person and Shared cards for transactions belonging to several people, such as a specific team or department - no more sharing a single physical card between employees.

All payment cards from Equals Money are virtual by default and therefore plastic-free, making them a more sustainable choice for your organisation, with the ability to be uploaded to your employee’s personal or company smartphone, smartwatch, and more with digital wallets.

Reduce frivolous spending and enable spend for your entire team with unlimited virtual cards that can be issued instantly. Manage budgets and reporting effortlessly from your workplace in one centralised platform.

Virtual cards from Equals Money further simplify business spending for your teams and offers complete control for your business as a whole.

Virtual cards for your business
Find out more
About the author
Euan Robb
Small bio goes here where we talk about professional interests and predictions of where our industry goes.

Still have questions?