A major shift that is taking place in the way eCommerce businesses carry out their operational payments is through the adoption of virtual payment cards.
Thanks to versatility and flexibility of virtual cards, they are taking a ever larger portion of the payments market. Research predicts that the virtual card market will grow by 280%, from $2.4 trillion to $9.1 trillion between 2022 and 2027.
For e-commerce business owners, they might have experienced the various challenges involved in payments with regard to suppliers, vendors, advertising , subscription services, and so on. Virtual cards, at every level of your organization, offer endless convenience and advantages over physical counterparts, from paying suppliers to employees on business trips.
Reasons Every E-commerce Business Needs Virtual Cards
Virtual cards provide an added layer of security compared to traditional physical cards. They are typically issued for single-use or limited transactions, reducing the risk of fraud and unauthorized use. Since virtual cards have unique card numbers and expiration dates, they minimize the chances of sensitive information being compromised.
Additionally, virtual cards can help prevent fraudulent activities, such as card skimming or data breaches. Since they are generated for specific transactions, they can't be used for unauthorized purchases or recurring payments. Online management makes it much more convenient for administrators to create or freeze the cards. If a virtual card's information is compromised, it can be immediately frozen and not available to any purchases any more.
Virtual cards eliminate the need for physical card production and distribution, reducing costs associated with printing, shipping, and card replacements. Additionally, since virtual cards are often tied to specific transactions, they can help prevent chargebacks and associated fees.
When it comes to cross-border transactions for eCommerce merchants, merchants can also save a lot. Virtual cards can be issued in different currencies, allowing for seamless international payments without the need for currency conversion.
Virtual cards can simplify the reconciliation process for merchants. Each virtual card can be assigned a unique identifier or reference number with customized budgets for each purpose. You and your employees won’t be able to spend over these limits and you’ll receive notifications about how much you have left.
Every payment can be categorized and logged, making it easy for accounts to keep track of payments, receipts and invoices. Having a great deal of control over company spending also makes it easy to reconcile payments at the end of each month and to identify any unnecessary expenses. This streamlined process can save time and effort in accounting and financial reporting.
Integration and Automation
Virtual cards can be integrated into various payment systems and platforms, enabling automation and reducing manual intervention. Merchants can set up virtual card systems to automatically generate cards for specific transactions or trigger recurring payments, enhancing operational efficiency.
Virtual cards are transforming e-commerce as we know it. Whether a retailer utilizes dropshipping or pays vendors every month, having a digital card makes for more secure and convenient e-commerce solutions.
Use iPeakoin to Build Your Virtual Card Program
Build your own card solution using modular API to accommodate your business.
Access to better international interchange rates than other providers.
Empower your users to make transacting with crypto as simple as using a credit card.
Unlimited users and cards
Unlimited number of cards and users allowed. Customizable budgeting.
Can be used wherever Visa and MasterCard payments are accepted.
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