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Cutting the Checks: Boosting Commercial Payment Speed and Security With Virtual Cards
- Virtual cards, which are digital versions of traditional credit or debit cards, eradicates challenges associated with traditional paper-based and manual payment processes that present delays to fraud threats and disrupts operations and relationships.
- The virtual card benefits include minimising delays, reducing fraud risk and improving efficiency, and can help businesses to stabilise cash flow and strengthen B2B relationships.
- Out of US firms, nearly three in five contend with late B2B payments, with one-third enduring delays of over 90 days, according to a survey conducted in 2024.
- Heads of payments say fast and convenient payment methods like virtual cards boost the bottom line.
- Virtual cards offer built-in, digital safeguard against B2B payment fraud.
- A 2024 fraud survey by The Association for Financial Professionals found that 80% of organizations were targeted by payment fraud last year, up from 65% the previous year.
- PYMNTS Intelligence research shows that virtual cards award greater expenditure management and control over expenditure through real-time tracking and reporting capabilities, improving expense management, and controlling corporate spending.
- Middle-market firms on average use four payment methods to pay suppliers, with 75% of companies continuing to use paper checks.
- Middle-market firms forfeit nearly twice as much revenue due to payment uncertainties on non-use of virtual card as compared to the firms that uses them.
- Virtual cards can streamline the user experience, by offering a variety of payment options and simplifying the payment process, suppliers can improve overall customer satisfaction.
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