Since the pandemic, the work landscape has undergone a profound transformation, with remote work firmly establishing itself as a key component of the present and future business world. 

Now, it’s clear this shift wasn’t just a temporary response to global changes but a permanent redefinition of the workplace. Especially since, for the past three years, one theme has remained consistent: the value of flexibility. 

Data shows employees who have it not only feel more productive and balanced but also demonstrate greater loyalty to their companies. The commitment to remote work is so strong that 62% of employees say they would accept a pay cut of 10% or more to maintain it, and 4% would even quit their jobs if denied the option of remote or hybrid work.

For this reason, equipping employees with adequate tools to succeed in this new era of work is imperative.

Businesses need tools not only to ensure effective communication and collaboration across teams —such as Google Meet, Microsoft Teams, Slack, Zoom, etc.–- but also to empower team members to make any business payments required to perform their roles efficiently, no matter their physical location.

Unfortunately, relying on traditional payment methods to extend access to company funds won’t get you very far without adding layers of risks and complexity to the business, finance team, and employees. 

As a business, you need virtual credit cards for remote, hybrid, and on-site team members as part of your financial toolkit. And once you’ve witnessed their benefits, it will be hard to go back to traditional plastic business credit cards, personal credit cards, ACH, or checks.

How virtual credit cards can support remote work

Virtual cards have gained popularity as a powerful tool that empowers employees to make business payments whenever and wherever they need to, without the risks and inefficiency of using shared or individual physical cards or dealing with cumbersome reimbursement processes. 

But what are virtual credit cards? 

Virtual cards are an extension of your corporate card but only exist virtually; there’s no physical counterpart. They hold their unique card number, security code, and expiration date and work the same way as a regular business credit card.

There are many benefits of virtual credit cards, including their ease of use, security, and flexibility.

Rather than waiting for plastic cards to be delivered in the mail, you can instantly issue virtual cards to anyone in or outside your organization with as little as an email address. You can also set spending limits and expiration dates per card and deactivate cards as needed and on the go. 

Not to mention, you get an always-on view of all company spending as it takes place — including who has virtual cards, how much and where they’re spending, how much more they can spend, etc.— avoiding having to deal with surprise expenses made on personal cards or unrecognized transactions on shared credit cards.

Not only do virtual cards facilitate a seamless, secure, and efficient payment process for employees, but they also ensure transactions are easily trackable and manageable for the finance team and management.

This flexibility is crucial in a remote work environment where monitoring expenses and maintaining financial oversight can be challenging. 

Benefits of using virtual credit cards for remote and distributed teams

Adopting virtual credit cards for remote teams brings a number of benefits for distributed teams, from improved employee morale to better spend management, reporting, and streamlined financial operations.

All critical components to enhance the overall efficiency and security of your business.

Controlled spending even from remote locations

With virtual cards, you can set predefined spending limits for each card or transaction, ensuring expenses stay within budget constraints. You can set the card to be valid for any time period–1 day, five days, one month, two years, or anything in between.  

This level of control is particularly beneficial for distributed teams, where overseeing payments in real-time can otherwise be a challenge. Spending limits not only prevent overspending but promote financial accountability across your organization. You’ll always know what is being spent, while employees understand their approved spending limit, no matter where they happen to be. 

Easy expense tracking and reporting for remote team members

Reconciling expenses the traditional way tends to be tedious, time-consuming, and error-prone. Virtual credit cards simplify this process by automatically capturing additional transaction details and syncing them with your accounting software. 

For instance, if your team shares a card for business purchases, you’ll have to track or guess who made which transactions. However, with virtual cards, you can ensure team members don’t have to share a card anymore. With this integration, you can also automate the reporting process, allowing real-time visibility into spending patterns and facilitating quick and accurate expense reconciliation. 

This means no more manual entry of receipts or tedious expense reports for remote teams. And a streamlined process that reduces error and frees up time for more strategic work for finance teams. 

Simplified approval processes for remote teams 

Manually approving purchase orders and business expenses isn’t ideal, especially when dealing with employees across the globe and in different time zones. Fortunately, virtual cards can be configured to align with your company's spending policies. 

Not only can you send approved virtual cards to employees, but they can also request cards from you, which you can approve and adjust before any money has been spent. This modern feature not only speeds up the approval process but also ensures visibility into upcoming spending and compliance with company policies.

Security benefits of virtual credit cards for remote transactions

In a recent study, LexisNexis, a global provider of risk solutions, found that 90% of respondents experienced an increase in online fraud. This should not be a surprise since, as of 2023, 620 million records have been stolen through nearly 700 major data breaches –-that’s almost two records per U.S. citizen, according to the University of Delaware.

In an era in which fraud and data breaches are increasingly common, ensuring the security of your financial transactions and tools has never been more crucial.

Virtual cards can help with that. 

Secure online payments for remote team members

A remote workforce means multiple WiFi connections across various locations –- including coffee shops, on-demand office spaces, etc. This is risky, especially if employees don’t use a VPN to protect their connections. But if you use virtual cards to handle all business payments, you’re in luck. 

Virtual cards hold unique numbers, meaning your real account information is never shared when making payments. If a card number is ever compromised, it’s likely the spending limit will have already been used, or the card will have expired by the time a thief tries to use it. 

In addition, you or the employee can easily and instantly deactivate that one card in the virtual card app without having to call customer service or affecting your entire credit line. Using virtual cards is also a safe alternative to sharing card numbers over the phone, email, messaging platforms, or even a piece of paper, where security can’t be guaranteed.

Fraud prevention features suitable for remote transactions 

In addition to the virtual card's built-in security features mentioned above, opting to go virtual also means getting real-time monitoring and alerts, enabling you to quickly detect and respond to any unauthorized or suspicious activity. 

Also, the ability to instantly deactivate virtual cards adds an extra layer of defense against potential fraudsters. Taking this proactive stance to prevent fraud is crucial, mainly when time is of the essence. Acting swiftly can be the difference between safeguarding your business funds and falling victim to fraud. 

Controlled spending limits for remote teams 

You can easily prevent overspending and unauthorized purchases by leveraging predetermined spending limits per each virtual card you create in your business. 

This level of control and visibility into every single dollar spent in your business will not only give you peace of mind over what’s being spent but will ensure employees adhere to the budget while your finance team benefits from a straightforward way to manage finances. 

It also empowers your team with a payment method when they need one and gives them a clear understanding of spending boundaries. This will ultimately foster a sense of trust and responsibility, boosting employee morale and satisfaction.

Enhancing the efficiency of online payments for remote teams 

Virtual credit cards are reshaping how businesses manage payments, especially for teams spread across various locations. It’s no surprise their global value is expected to increase from $1.9 trillion to an astounding $6.8 trillion by 2026, according to Visa. 

This significant growth highlights an increasing shift toward digital in the corporate world, a trend particularly relevant in remote work – which is clearly here to stay.

Integrating virtual cards into your company's financial arsenal is more than just a step toward modernization; it's a strategic move toward digital transformation and ensuring your business is well-equipped to handle the evolving demands of remote work and digital financial transactions. 

The next step in financial management for remote teams

Ready to take the next step toward better financial management in your business?

Virtual cards for distributed teams offer an innovative, secure, and efficient solution to start your digital transformation journey.

Learn more about how virtual cards can transform your business operations.