Virtual or online debit cards are becoming more popular for bringing positive changes to how people conduct business online and process payments. They offer the same functions and benefits as physical debit cards, but the card itself and the transactions happen online. But how exactly do they make business easier for establishments and business owners?
This article will outline how online debit cards work and what makes them beneficial for companies in this modern age.
What is an online debit card?
Online debit cards are the digitized version of the hard plastic card consumers keep in their wallets. They are widely used for cashless and contactless payments online. Virtual debit cards come with their unique series of numbers, a CVV, and expiration date, which can significantly offer consumers and business owners security in their respective accounts.
Banks issue online debit cards and are typically accessible through a mobile app. As they have similar features to the physical ones, their uses are also quite similar.
How Can Online Debit Cards Help Businesses?
Online payments and virtual debit cards are just among the fintech advancements in this digital age that have changed and improved how traditional payments and accounting processes work. Not only does this advancement make it convenient for most consumers, but business owners as well.
To start, here are some ways the best virtual debit card can help streamline business payments and transactions.
1. Offers Efficiency In Processing Payments
One of the benefits of online debit cards is it allows businesses to simplify and improve their process of verifying the payments made. While a physical and online card’s function is relatively the same, the former sometimes require a complex process of validating transaction receipts and reconciling payments.
It can also help simplify the payment process for vendors and suppliers, even if they are based abroad. You can stop making payment requests from the accounting department since online debit cards can replace that long and arduous process.
More so, adding a virtual debit card platform to your system can further boost the efficiency and accuracy of processing the payments made to the company. It allows you to easily track and oversee the transactions made and connect them with respective accounts.
Financial information is also viewable online, and key personnel handling the financials can easily view it using a mobile device. With this reliable tool, you can conveniently manage your business’ payments and transactions.
2. Improves Transparency And Spending Visibility
Aside from processing the payments made by consumers to your business when availing of your products or services, online debit cards can also be beneficial when making purchases essential for your business’s operations.
Since it is running on a digital platform, you can reduce the need for paperwork and physical copies of invoices. The procurement team handling your company’s expenses can utilize online debit cards when making essential purchases. You can also simplify the approval process for each transaction and promote transparency and accountability among your employees.
And much like how you process the payment you’ve received, you can also conveniently track your employees’ transactions. More so, you can assign or set a limit on each virtual card to control the expenses and still stick within your allocated budget.
3. Offers A More Secured Transaction
Traditional bank and physical cards tend to be more open to security pitfalls because they can become an easy target for payment fraud and identity theft. When this happens, the process of retrieving the account can take some time, from freezing your credit report to monitoring financial statements.
Virtual debit cards are considered safer and more secure to use because they are tangible and run on a digital platform, making them impossible to lose, duplicate, or steal, unlike physical cards. As mentioned, online debit cards allow you to set a specific spending limit anytime your employees need to make a purchase.
More so, you can have the option to delete your account anytime if you suspect a leak in information or a security threat. Or perhaps, you can set up a single-use online debit card that expires as soon as you finish making your transaction.
Final Thoughts
Today, online debit cards are just among the well-known fintech advances revolutionizing how payments are made and how digital transactions work. Businesses can utilize this tool to their advantage and further improve the efficiency of their finance and accounting departments.
Aside from the convenience and the improved security feature, online debit cards allow for a more streamlined process in terms of certifying business payments and transactions, improving transparency, and increasing spending visibility within the organization.
With online debit cards, anyone can enjoy the convenience and security of a step above physical debit cards.
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