Managing business expenses doesn’t have to be complicated—you just need the right tool for the job.
Checks, ACH payments, shared plastic cards, and paper trails served their purpose, but today’s businesses need faster, safer, and more efficient solutions. That’s wherevirtual credit cards come in.
Part of a growing set of digital finance tools, virtual cards simplify payment processes, minimize errors, and tackle the security risks tied to traditional methods.
Here’s what might surprise you: until recently, virtual cards were mostly limited to consumers and large enterprises. Small-to-medium-sized businesses weren’t able to benefit from this powerful tool at all.
With virtual cards more accessible than ever, you’re missing out on some serious benefits if you’re not using them in your business yet.
Let’s dive into what virtual cards are and how you can start benefiting from them today.
What are virtual credit cards?
Virtual cards are just like regular credit cards—but they’re smarter and completely digital. Instead of carrying a physical card, you can generate a unique 16-digit card number for specific transactions.
What makes virtual cards stand out is how customizable they are. Need to set a spending limit? Done. Want an expiration date or a card that can only be used once a week? Easy. This level of flexibility makes them perfect for managing budgets, paying vendors, or tracking expenses for specific projects—all with far more control than a traditional card.
And let’s not forget security. Since virtual cards are entirely digital, there’s no risk of losing them or having them stolen. Plus, you can monitor their use in real time, so you’re always in the know about what’s being spent and where.
Simply put, virtual cards give you the flexibility, control, and security you need to manage business expenses —without the hassles of traditional credit cards.
How to use virtual credit cards in practice
Using a virtual card is simple—just plug in the details and let the payment processor do its job.
Online: Enter the virtual card number, validity code, and expiration date — just like you would with a regular card.
In-app or over the phone: Save your virtual card details as a payment method in your favorite apps. For phone orders, simply share the card information with the merchant.
In-store: Type in the card details into the card reader at the store.
Digital wallets: If enabled by your card issuer, add your virtual card to your Apple Pay or Google Pay mobile wallet for quick, contactless payments on the go.
Key use cases for virtual credit cards
1. Empower your employees
Giving employees a physical credit card might seem like a good idea at first, but it often leads to headaches. Fraud, theft, overspending, or misuse can happen—and by the time finance catches it, weeks or even months may have gone by.
Many businesses limit who gets a company card to avoid these risks. But that creates its own set of problems. Employees without cards end up paying for business expenses out of pocket, waiting on reimbursements that can strain their finances and waste time with extra paperwork.
Virtual cards fix this by empowering your employees to pay for what they need, when they need it, without dipping into their own wallets. You can set spending limits, monitor transactions in real-time, and adjust controls instantly. It’s an easy way to equip your team with the tools they need while keeping your finances secure and well-organized.
2. Handle vendor payments
If you’re still paying vendors with traditional methods, you know how time-consuming and frustrating it can be. Virtual cards offer a simpler, faster, and more secure alternative.
With virtual cards, you can pay vendors with a click of a button—no more waiting for checks to clear or ACH payments to process. And because everything is digital, there’s no risk of payments getting lost in the mail, a common issue with physical checks.
Tracking payments is also easy. Virtual cards let you monitor every transaction in real-time, giving you greater control and visibility. The benefits are twofold: You save time otherwise spent replacing your card or disputing charges, and you reduce administrative work so employees can focus on what matters most.
Instead of trying to match transactions on a physical card at the end of the month, you can assign a dedicated card to each client or project. Not only will this make it easier to track spending in real-time, but you’ll essentially reconcile transactions as they occur. You can also attach reference codes to cards and transactions, streamlining bookkeeping and maintaining all records organized in one convenient digital location.
Thanks to spending limits you can customize per card, you can also prevent overspending and keep full control over how funds are used. Whether it’s managing team purchases or vendor costs, every transaction is tracked, and accountability is built right in, making expense management seamless and stress-free.
Practical considerations and limitations
Potential fees: Some virtual card providers, particularly those operating outside traditional banks, might charge activation or maintenance fees. It’s important to understand these costs upfront and weigh them against the benefits for your business. However, by choosing a virtual card provider that partners with your existing bank, you can often offset these costs. Staying within your bank’s ecosystem allows you to maximize rewards and rebates on every transaction, adding extra value that can be reinvested back into your business.
Acceptance varies: While most merchants accept virtual cards, some smaller businesses or those with older payment systems might not. Checking with the merchant beforehand can ensure a smooth transaction. That said, this limitation is becoming less common as more businesses adopt modern technology, so it's only a matter of time before virtual cards are widely accepted.
Temporary holds: Services like car rentals or hotels might place temporary holds on virtual cards sometimes, which can temporarily lower your available balance. Therefore, make sure to plan your payments accordingly to ensure things run smoothly.
Getting started with virtual credit cards
Getting started with virtual credit cards begins with choosing the right platform. Some virtual card providers require businesses to switch banks, open new accounts, or sign new contracts, so it’s important to factor in these extra steps when evaluating your options.
Platforms likeExtend make the process much simpler.
Extend partners with banks, allowing you to use virtual cards as an extension of your existing corporate card—no need to switch banks or open new lines of credit.
Integration is just as straightforward.
Extend virtual cards are designed to work seamlessly with your existing financial systems, such as QuickBooks Onlineor NetSuite. Whether you’re using virtual cards to manage expenses, pay vendors, or track budgets, you can get started in minutes, without the hassle of a complex transition.
Managing business expenses doesn’t have to be complicated—you just need the right tool for the job.
Checks, ACH payments, shared plastic cards, and paper trails served their purpose, but today’s businesses need faster, safer, and more efficient solutions. That’s wherevirtual credit cards come in.
Part of a growing set of digital finance tools, virtual cards simplify payment processes, minimize errors, and tackle the security risks tied to traditional methods.
Here’s what might surprise you: until recently, virtual cards were mostly limited to consumers and large enterprises. Small-to-medium-sized businesses weren’t able to benefit from this powerful tool at all.
With virtual cards more accessible than ever, you’re missing out on some serious benefits if you’re not using them in your business yet.
Let’s dive into what virtual cards are and how you can start benefiting from them today.
What are virtual credit cards?
Virtual cards are just like regular credit cards—but they’re smarter and completely digital. Instead of carrying a physical card, you can generate a unique 16-digit card number for specific transactions.
What makes virtual cards stand out is how customizable they are. Need to set a spending limit? Done. Want an expiration date or a card that can only be used once a week? Easy. This level of flexibility makes them perfect for managing budgets, paying vendors, or tracking expenses for specific projects—all with far more control than a traditional card.
And let’s not forget security. Since virtual cards are entirely digital, there’s no risk of losing them or having them stolen. Plus, you can monitor their use in real time, so you’re always in the know about what’s being spent and where.
Simply put, virtual cards give you the flexibility, control, and security you need to manage business expenses —without the hassles of traditional credit cards.
How to use virtual credit cards in practice
Using a virtual card is simple—just plug in the details and let the payment processor do its job.
Online: Enter the virtual card number, validity code, and expiration date — just like you would with a regular card.
In-app or over the phone: Save your virtual card details as a payment method in your favorite apps. For phone orders, simply share the card information with the merchant.
In-store: Type in the card details into the card reader at the store.
Digital wallets: If enabled by your card issuer, add your virtual card to your Apple Pay or Google Pay mobile wallet for quick, contactless payments on the go.
Key use cases for virtual credit cards
1. Empower your employees
Giving employees a physical credit card might seem like a good idea at first, but it often leads to headaches. Fraud, theft, overspending, or misuse can happen—and by the time finance catches it, weeks or even months may have gone by.
Many businesses limit who gets a company card to avoid these risks. But that creates its own set of problems. Employees without cards end up paying for business expenses out of pocket, waiting on reimbursements that can strain their finances and waste time with extra paperwork.
Virtual cards fix this by empowering your employees to pay for what they need, when they need it, without dipping into their own wallets. You can set spending limits, monitor transactions in real-time, and adjust controls instantly. It’s an easy way to equip your team with the tools they need while keeping your finances secure and well-organized.
2. Handle vendor payments
If you’re still paying vendors with traditional methods, you know how time-consuming and frustrating it can be. Virtual cards offer a simpler, faster, and more secure alternative.
With virtual cards, you can pay vendors with a click of a button—no more waiting for checks to clear or ACH payments to process. And because everything is digital, there’s no risk of payments getting lost in the mail, a common issue with physical checks.
Tracking payments is also easy. Virtual cards let you monitor every transaction in real-time, giving you greater control and visibility. The benefits are twofold: You save time otherwise spent replacing your card or disputing charges, and you reduce administrative work so employees can focus on what matters most.
Instead of trying to match transactions on a physical card at the end of the month, you can assign a dedicated card to each client or project. Not only will this make it easier to track spending in real-time, but you’ll essentially reconcile transactions as they occur. You can also attach reference codes to cards and transactions, streamlining bookkeeping and maintaining all records organized in one convenient digital location.
Thanks to spending limits you can customize per card, you can also prevent overspending and keep full control over how funds are used. Whether it’s managing team purchases or vendor costs, every transaction is tracked, and accountability is built right in, making expense management seamless and stress-free.
Practical considerations and limitations
Potential fees: Some virtual card providers, particularly those operating outside traditional banks, might charge activation or maintenance fees. It’s important to understand these costs upfront and weigh them against the benefits for your business. However, by choosing a virtual card provider that partners with your existing bank, you can often offset these costs. Staying within your bank’s ecosystem allows you to maximize rewards and rebates on every transaction, adding extra value that can be reinvested back into your business.
Acceptance varies: While most merchants accept virtual cards, some smaller businesses or those with older payment systems might not. Checking with the merchant beforehand can ensure a smooth transaction. That said, this limitation is becoming less common as more businesses adopt modern technology, so it's only a matter of time before virtual cards are widely accepted.
Temporary holds: Services like car rentals or hotels might place temporary holds on virtual cards sometimes, which can temporarily lower your available balance. Therefore, make sure to plan your payments accordingly to ensure things run smoothly.
Getting started with virtual credit cards
Getting started with virtual credit cards begins with choosing the right platform. Some virtual card providers require businesses to switch banks, open new accounts, or sign new contracts, so it’s important to factor in these extra steps when evaluating your options.
Platforms likeExtend make the process much simpler.
Extend partners with banks, allowing you to use virtual cards as an extension of your existing corporate card—no need to switch banks or open new lines of credit.
Integration is just as straightforward.
Extend virtual cards are designed to work seamlessly with your existing financial systems, such as QuickBooks Onlineor NetSuite. Whether you’re using virtual cards to manage expenses, pay vendors, or track budgets, you can get started in minutes, without the hassle of a complex transition.
Managing business expenses doesn’t have to be complicated—you just need the right tool for the job.
Checks, ACH payments, shared plastic cards, and paper trails served their purpose, but today’s businesses need faster, safer, and more efficient solutions. That’s wherevirtual credit cards come in.
Part of a growing set of digital finance tools, virtual cards simplify payment processes, minimize errors, and tackle the security risks tied to traditional methods.
Here’s what might surprise you: until recently, virtual cards were mostly limited to consumers and large enterprises. Small-to-medium-sized businesses weren’t able to benefit from this powerful tool at all.
With virtual cards more accessible than ever, you’re missing out on some serious benefits if you’re not using them in your business yet.
Let’s dive into what virtual cards are and how you can start benefiting from them today.
What are virtual credit cards?
Virtual cards are just like regular credit cards—but they’re smarter and completely digital. Instead of carrying a physical card, you can generate a unique 16-digit card number for specific transactions.
What makes virtual cards stand out is how customizable they are. Need to set a spending limit? Done. Want an expiration date or a card that can only be used once a week? Easy. This level of flexibility makes them perfect for managing budgets, paying vendors, or tracking expenses for specific projects—all with far more control than a traditional card.
And let’s not forget security. Since virtual cards are entirely digital, there’s no risk of losing them or having them stolen. Plus, you can monitor their use in real time, so you’re always in the know about what’s being spent and where.
Simply put, virtual cards give you the flexibility, control, and security you need to manage business expenses —without the hassles of traditional credit cards.
How to use virtual credit cards in practice
Using a virtual card is simple—just plug in the details and let the payment processor do its job.
Online: Enter the virtual card number, validity code, and expiration date — just like you would with a regular card.
In-app or over the phone: Save your virtual card details as a payment method in your favorite apps. For phone orders, simply share the card information with the merchant.
In-store: Type in the card details into the card reader at the store.
Digital wallets: If enabled by your card issuer, add your virtual card to your Apple Pay or Google Pay mobile wallet for quick, contactless payments on the go.
Key use cases for virtual credit cards
1. Empower your employees
Giving employees a physical credit card might seem like a good idea at first, but it often leads to headaches. Fraud, theft, overspending, or misuse can happen—and by the time finance catches it, weeks or even months may have gone by.
Many businesses limit who gets a company card to avoid these risks. But that creates its own set of problems. Employees without cards end up paying for business expenses out of pocket, waiting on reimbursements that can strain their finances and waste time with extra paperwork.
Virtual cards fix this by empowering your employees to pay for what they need, when they need it, without dipping into their own wallets. You can set spending limits, monitor transactions in real-time, and adjust controls instantly. It’s an easy way to equip your team with the tools they need while keeping your finances secure and well-organized.
2. Handle vendor payments
If you’re still paying vendors with traditional methods, you know how time-consuming and frustrating it can be. Virtual cards offer a simpler, faster, and more secure alternative.
With virtual cards, you can pay vendors with a click of a button—no more waiting for checks to clear or ACH payments to process. And because everything is digital, there’s no risk of payments getting lost in the mail, a common issue with physical checks.
Tracking payments is also easy. Virtual cards let you monitor every transaction in real-time, giving you greater control and visibility. The benefits are twofold: You save time otherwise spent replacing your card or disputing charges, and you reduce administrative work so employees can focus on what matters most.
Instead of trying to match transactions on a physical card at the end of the month, you can assign a dedicated card to each client or project. Not only will this make it easier to track spending in real-time, but you’ll essentially reconcile transactions as they occur. You can also attach reference codes to cards and transactions, streamlining bookkeeping and maintaining all records organized in one convenient digital location.
Thanks to spending limits you can customize per card, you can also prevent overspending and keep full control over how funds are used. Whether it’s managing team purchases or vendor costs, every transaction is tracked, and accountability is built right in, making expense management seamless and stress-free.
Practical considerations and limitations
Potential fees: Some virtual card providers, particularly those operating outside traditional banks, might charge activation or maintenance fees. It’s important to understand these costs upfront and weigh them against the benefits for your business. However, by choosing a virtual card provider that partners with your existing bank, you can often offset these costs. Staying within your bank’s ecosystem allows you to maximize rewards and rebates on every transaction, adding extra value that can be reinvested back into your business.
Acceptance varies: While most merchants accept virtual cards, some smaller businesses or those with older payment systems might not. Checking with the merchant beforehand can ensure a smooth transaction. That said, this limitation is becoming less common as more businesses adopt modern technology, so it's only a matter of time before virtual cards are widely accepted.
Temporary holds: Services like car rentals or hotels might place temporary holds on virtual cards sometimes, which can temporarily lower your available balance. Therefore, make sure to plan your payments accordingly to ensure things run smoothly.
Getting started with virtual credit cards
Getting started with virtual credit cards begins with choosing the right platform. Some virtual card providers require businesses to switch banks, open new accounts, or sign new contracts, so it’s important to factor in these extra steps when evaluating your options.
Platforms likeExtend make the process much simpler.
Extend partners with banks, allowing you to use virtual cards as an extension of your existing corporate card—no need to switch banks or open new lines of credit.
Integration is just as straightforward.
Extend virtual cards are designed to work seamlessly with your existing financial systems, such as QuickBooks Onlineor NetSuite. Whether you’re using virtual cards to manage expenses, pay vendors, or track budgets, you can get started in minutes, without the hassle of a complex transition.
Yes! Virtual credit cards can be used for online, in-app, over-the-phone, or in-person transactions. For in-person payments, you can either key in the virtual card details at checkout or, if your issuer supports it, add the virtual card to your digital wallet, such as Apple Pay or Google Pay. This lets you make quick and secure contactless payments at any store that accepts mobile payment methods.
Can I get cash from a virtual credit card?
No, virtual credit cards can’t be used for cash advances. Cash advances require a physical card to be present at an ATM or bank, so this option isn’t available with the virtual version of a credit card.
What’s the difference between virtual cards and digital wallets?
Virtual cards and digital wallets both offer secure, tokenized payment options, but they serve different purposes.
Virtual cards: These are customizable payment tools that give you control over spending. You can set spending limits, expiration dates, and even share virtual cards with team members or vendors. Virtual cards are ideal for managing expenses, tracking budgets, and maintaining financial control.
Digital wallets: Digital wallets, like Apple Pay, Google Pay, and PayPal, are storage solutions for your physical and virtual credit cards. They let you pay without needing your physical wallet and are great for both in-person and online purchases.
While you can store a virtual card in a digital wallet for added convenience, virtual cards don’t depend on digital wallets to work. They stand out for their flexibility and control, allowing you to manage spending in ways that digital wallets can’t. For example, you can send a virtual card to a colleague to cover a specific expense—but you can’t send someone your digital wallet.
Blog
How to use a virtual credit card
Presented by
Irais Urias
Content Marketing Manager
Managing business expenses doesn’t have to be complicated—you just need the right tool for the job.
Checks, ACH payments, shared plastic cards, and paper trails served their purpose, but today’s businesses need faster, safer, and more efficient solutions. That’s wherevirtual credit cards come in.
Part of a growing set of digital finance tools, virtual cards simplify payment processes, minimize errors, and tackle the security risks tied to traditional methods.
Here’s what might surprise you: until recently, virtual cards were mostly limited to consumers and large enterprises. Small-to-medium-sized businesses weren’t able to benefit from this powerful tool at all.
With virtual cards more accessible than ever, you’re missing out on some serious benefits if you’re not using them in your business yet.
Let’s dive into what virtual cards are and how you can start benefiting from them today.
What are virtual credit cards?
Virtual cards are just like regular credit cards—but they’re smarter and completely digital. Instead of carrying a physical card, you can generate a unique 16-digit card number for specific transactions.
What makes virtual cards stand out is how customizable they are. Need to set a spending limit? Done. Want an expiration date or a card that can only be used once a week? Easy. This level of flexibility makes them perfect for managing budgets, paying vendors, or tracking expenses for specific projects—all with far more control than a traditional card.
And let’s not forget security. Since virtual cards are entirely digital, there’s no risk of losing them or having them stolen. Plus, you can monitor their use in real time, so you’re always in the know about what’s being spent and where.
Simply put, virtual cards give you the flexibility, control, and security you need to manage business expenses —without the hassles of traditional credit cards.
How to use virtual credit cards in practice
Using a virtual card is simple—just plug in the details and let the payment processor do its job.
Online: Enter the virtual card number, validity code, and expiration date — just like you would with a regular card.
In-app or over the phone: Save your virtual card details as a payment method in your favorite apps. For phone orders, simply share the card information with the merchant.
In-store: Type in the card details into the card reader at the store.
Digital wallets: If enabled by your card issuer, add your virtual card to your Apple Pay or Google Pay mobile wallet for quick, contactless payments on the go.
Key use cases for virtual credit cards
1. Empower your employees
Giving employees a physical credit card might seem like a good idea at first, but it often leads to headaches. Fraud, theft, overspending, or misuse can happen—and by the time finance catches it, weeks or even months may have gone by.
Many businesses limit who gets a company card to avoid these risks. But that creates its own set of problems. Employees without cards end up paying for business expenses out of pocket, waiting on reimbursements that can strain their finances and waste time with extra paperwork.
Virtual cards fix this by empowering your employees to pay for what they need, when they need it, without dipping into their own wallets. You can set spending limits, monitor transactions in real-time, and adjust controls instantly. It’s an easy way to equip your team with the tools they need while keeping your finances secure and well-organized.
2. Handle vendor payments
If you’re still paying vendors with traditional methods, you know how time-consuming and frustrating it can be. Virtual cards offer a simpler, faster, and more secure alternative.
With virtual cards, you can pay vendors with a click of a button—no more waiting for checks to clear or ACH payments to process. And because everything is digital, there’s no risk of payments getting lost in the mail, a common issue with physical checks.
Tracking payments is also easy. Virtual cards let you monitor every transaction in real-time, giving you greater control and visibility. The benefits are twofold: You save time otherwise spent replacing your card or disputing charges, and you reduce administrative work so employees can focus on what matters most.
Instead of trying to match transactions on a physical card at the end of the month, you can assign a dedicated card to each client or project. Not only will this make it easier to track spending in real-time, but you’ll essentially reconcile transactions as they occur. You can also attach reference codes to cards and transactions, streamlining bookkeeping and maintaining all records organized in one convenient digital location.
Thanks to spending limits you can customize per card, you can also prevent overspending and keep full control over how funds are used. Whether it’s managing team purchases or vendor costs, every transaction is tracked, and accountability is built right in, making expense management seamless and stress-free.
Practical considerations and limitations
Potential fees: Some virtual card providers, particularly those operating outside traditional banks, might charge activation or maintenance fees. It’s important to understand these costs upfront and weigh them against the benefits for your business. However, by choosing a virtual card provider that partners with your existing bank, you can often offset these costs. Staying within your bank’s ecosystem allows you to maximize rewards and rebates on every transaction, adding extra value that can be reinvested back into your business.
Acceptance varies: While most merchants accept virtual cards, some smaller businesses or those with older payment systems might not. Checking with the merchant beforehand can ensure a smooth transaction. That said, this limitation is becoming less common as more businesses adopt modern technology, so it's only a matter of time before virtual cards are widely accepted.
Temporary holds: Services like car rentals or hotels might place temporary holds on virtual cards sometimes, which can temporarily lower your available balance. Therefore, make sure to plan your payments accordingly to ensure things run smoothly.
Getting started with virtual credit cards
Getting started with virtual credit cards begins with choosing the right platform. Some virtual card providers require businesses to switch banks, open new accounts, or sign new contracts, so it’s important to factor in these extra steps when evaluating your options.
Platforms likeExtend make the process much simpler.
Extend partners with banks, allowing you to use virtual cards as an extension of your existing corporate card—no need to switch banks or open new lines of credit.
Integration is just as straightforward.
Extend virtual cards are designed to work seamlessly with your existing financial systems, such as QuickBooks Onlineor NetSuite. Whether you’re using virtual cards to manage expenses, pay vendors, or track budgets, you can get started in minutes, without the hassle of a complex transition.
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