A virtual credit card (VCC) is a payment method developed for online transactions. With the rapid growth of technology and the internet, the virtual credit card has become very popular. Its convenience and increased security make it a preferred choice for individuals and businesses alike.
In this article, you will learn what a virtual credit card is, how it works, the benefits it offers and tips to consider when choosing the right VCC for your needs.
What is a virtual credit card?
A virtual credit card (VCC) is a digital credit card issued by banks or financial institutions for online transactions. Unlike traditional credit cards, a virtual credit card has no physical form, but contains important information such as card number, expiration date and card verification number (CVV).
As a digital card, VCCs can be used for various online payments, but not for transactions that require a physical card, such as payments via electronic data capture (EDC) machines.
A key difference between VCCs and conventional credit cards is the card number. While conventional credit cards have a fixed number, VCCs generate unique card numbers for each transaction. This dynamic numbering system increases security and reduces the risk of data theft.
Virtual credit cards for businesses
VCCs are not only used for individual transactions but are also becoming increasingly popular in the business sector. Businesses can use VCCs for various purposes, such as purchasing raw materials or paying routine company bills.
VCCs offer businesses a simple and secure payment method. You can issue multiple digital credit cards for specific departments or business functions. These cards can then be assigned to the relevant teams to use as required.
Here are some of the key benefits of VCCs for businesses:
- Customizable spending limits: VCCs allow you to set spending limits for each card, giving you full control over spending. You can also use a card for specific activities or transactions, minimizing the risk of internal fraud and wasteful spending.
- Rewards and cashback programs: Many VCC issuers offer rewards or cashback programs to help businesses save on operating costs.
- Real-time transaction monitoring: VCCs allow you to track transactions and card usage in real time. This level of transparency enables effective and efficient spend management.
How virtual credit cards work
The basic functioning of virtual credit cards (VCCs) is similar to that of conventional credit cards, but there are significant differences, particularly in the card numbers. Here is an overview of how virtual credit cards work:
1. Applying for and issuing the card
To obtain a virtual credit card, you must submit an application to a bank or VCC issuer. Once approved, the card is issued via an online platform, which is usually accessible via a desktop or mobile app.
2. Virtual credit card numbers
Unlike traditional credit cards with fixed numbers, VCCs generate unique, temporary virtual card numbers for each online transaction. Each transaction generates a different card number, which increases security and reduces the risk of data theft.
3. Set limits and expiry dates
VCCs allow you to set spending limits and expiry dates for the card - an important feature, especially for business use. You can assign specific limits to each virtual card and monitor transactions to prevent unauthorized spending.
4. Transaction process
When you perform an online transaction with a VCC, you must provide the required information, including:
- Virtual card number
- Expiry date
- CVV security code
- One-time password (OTP)
To protect your personal or company data, make sure that this information is not passed on to other people.
5. Tracking and reconciliation
All transactions made with a VCC are recorded in the issuer’s system and are accessible via the associated platform or app. This allows you to monitor your spending in real time and perform reconciliations to ensure accuracy with your company’s financial records.
Benefits of virtual credit cards
A virtual credit card (VCC) is a payment method that offers numerous benefits to its users, including business owners. Here are some of the key benefits of virtual credit cards:
1. Easy and fast setup
A major advantage of virtual credit cards is that they are quick and easy to set up. You don’t have to visit a bank or card provider in person, you can simply apply for the card online. The process is usually quick and you can customize the use of the card to your specific needs.
2. Convenient and flexible transactions
VCCs offer a convenient and flexible way to make online transactions. Since there is no physical card, you don’t have to worry about losing it. You can access your virtual card anytime, anywhere and use it for various online payments.
3. Increased security for transactions
A key advantage of VCCs is their high level of security. A unique virtual card number is generated for each transaction, so your original card details remain secure. This reduces the risk of data theft or fraud and protects your financial information.
4. Spending control
VCCs allow you to monitor transactions and control spending effectively, especially for business purposes. You can set spending limits for each virtual card and tailor them to the requirements of specific departments or projects.
5. Transparent transaction data
VCCs offer complete transparency of transaction data. You can easily view all billing information and manage your finances more efficiently. This transparency also simplifies accounting and financial reporting for your business.
Tips for choosing the right virtual credit card
Given the many benefits of virtual credit cards, choosing the right card is crucial, especially for business use. Below are some tips to help you choose the best VCC:
1. Check the reputation of the provider
Check the reputation of the VCC provider first. Make sure the provider is well respected and trustworthy. Look for testimonials and reviews from customers who have used the virtual credit card service.
2. Understand the features and benefits
Each virtual credit card offers different features depending on the provider. Compare the features of different virtual credit cards and choose the one that offers the most benefits for your business.
Look out for rewards or cashback programs that are tailored to your needs. For example, if your company travels frequently, consider a virtual credit card that offers cashback or rewards for ticket bookings or overnight stays.
3. Rate the customer support
Customer support is an important consideration when choosing a VCC. Check how quickly the provider’s customer service responds to questions or complaints. Make sure that the support team is easily accessible in case any issues arise with your VCC.
4. Check the terms and conditions
Finally, you should also carefully check the terms and conditions for setting up a virtual credit card. Find out about the requirements you need to meet, the usage procedures and any fees that might be incurred later.
Simplify transactions with the Aspire Corporate Card
VCCs are a convenient payment method, especially for businesses. However, not all corporate cards offer comprehensive benefits.
If you’re looking for a corporate card that's easy to issue, comes with cost control features and offers attractive cashback rewards, the Aspire Corporate Card is your ideal solution.
Why should you choose the Aspire Corporate Payment Card?
- Unlimited virtual cards for your team: With Aspire, you can issue an unlimited number of virtual cards for your team, tailored to their specific business needs.
- Customizable spending limits: Set spending limits and restrict transactions to specific merchants to ensure better control over your business spending.
- Real-time monitoring and approval policies: Monitor and control virtual card spend in real time. Streamline transaction processes with approval policies all managed through a single, easy-to-use platform.
- Multi-currency transactions: Transact directly in USD and SGD to avoid conversion fees.
- Unlimited 0.5% cashback: Enjoy unlimited 0.5% cashback on all transactions made with the Aspire card, increasing your savings on every purchase.
In addition to the corporate card, Aspire offers a range of innovative financial products to optimize your company’s financial management. Want to find out more about how Aspire can help your business? Contact our team today!
Frequently Asked Questions
How can Aspire support the unique financial needs and challenges of mid-sized businesses?
Aspire offers a comprehensive suite of expense management solutions tailored for mid-market companies. This includes sophisticated corporate cards, advanced budget controls, and streamlined claims and approval policies, all designed to enhance financial efficiency.
How quickly can a mid-market company integrate Aspire's solutions into existing systems and workflows?
Integration with Aspire's expense management solutions is swift and seamless. Mid-market companies can swiftly implement corporate cards with tailored features, set up nuanced budgets, and establish streamlined claims and approval processes, ensuring minimal disruption to existing workflows.
How does Aspire compare to competitors for international money transfers?
Aspire excels in international expense management with FX fees up to 2x cheaper than traditional banks.
Global payments are offered by various providers through business accounts. Read our article to know more about types of business accounts and how to choose the best one for your business. There are many banks and fintech companies offering business accounts to businesses in Singapore. We have covered them all in our blog, you can click the links to view accounts offered by various banks such as DBS, OCBC, Maybank etc.
However, if you are a start-up or a growing business, chances are you may not meet the eligibility criteria for most of these banks or find their charges to be expensive for your liking. You can consider opting for Aspire multi-currency account for global payments which offers you all the benefits, with eligibility criteria which are less stringent. Read our article on bank charges in Singapore for a quick and easy comparison.
What level of customization does Aspire offer to meet the specific financial requirements of mid-market clients?
Aspire understands the diverse financial needs of mid-market clients and provides a high level of customization to tailor solutions accordingly. This includes the ability to customize corporate cards with specific spending limits, rewards, and benefits that align with the unique requirements of each client.
Additionally, Aspire's budgeting features are adaptable to accommodate the distinct financial structures of mid-market enterprises. The platform also allows for fine-tuning approval policies, ensuring they align with the specific workflows and compliance standards of individual mid-market businesses. This commitment to customization empowers mid-market clients to optimize their expense management in a way that best suits their financial goals and operational preferences.
Is there a minimum balance required for Aspire Business Accounts?
No minimum balance is required to keep your SGD, USD, EUR, GBP and IDR Accounts activated.
Can Aspire's corporate cards be customized to cater to the specific needs of consulting teams on the go?
Yes, Aspire's corporate cards are highly customizable. Consulting teams can benefit from tailored spending limits, travel-centric perks, and real-time transaction tracking, ensuring that the cards meet the unique requirements of professionals on the move.
How does Aspire support budget management for consulting projects and travel expenses?
Aspire's platform offers sophisticated budget controls that consulting companies can adapt to project-specific needs. This includes setting project budgets, tracking expenditures, and receiving real-time insights to ensure that expenses align with project goals.
What are Aspire Corporate Card FX rates?
At Aspire, we want you to pay the lowest rates in the market.
- Zero card activation fees
- Zero card transaction fees
- Best FX rates, up to 2x cheaper than banks
How does Aspire help consulting companies enforce expense policies and approvals for travel expenses?
Aspire streamlines the claims and approval process, allowing consulting companies to establish and enforce expense policies seamlessly. Customizable approval workflows ensure compliance with company policies and industry regulations.
Is Aspire's platform scalable for consulting companies of varying sizes?
Yes, Aspire's platform is scalable and caters to consulting companies of all sizes. Whether you're a boutique consultancy or a larger firm, the platform's features can be adapted to meet your specific travel and expense management needs.
How can I open a business account in Singapore?
For a business account in Singapore, Aspire is an excellent choice. With a focus on startup and SME needs, Aspire offers a seamless and transparent banking experience.
Benefit from their user-friendly online platform, no minimum balance or account opening fees, and dedicated support for businesses of all sizes.
Aspire is designed to streamline your financial management, making it an ideal partner for entrepreneurs in Singapore.
How long does it take to open an Aspire business account?
Registration with Aspire takes less than 10 minutes which you can do via our website or mobile app.
Once registered, we will get back to you within 5 business days on whether your account has been activated or if we need further documents from you.
Our account verification process varies according to the nature of your business. In exceptional cases, it can take up to 7 days to process your documents.
How can Aspire's corporate cards benefit my startup?
Aspire's corporate cards offer a range of benefits for your startup. Earn 1% unlimited cashback on qualified spends, simplify expense management, enjoy streamlined transactions, and gain real-time insights into spending. With customizable limits, integration with accounting software, and enhanced security features, Aspire's corporate cards are designed to empower your startup's financial efficiency and provide added convenience for your team.
Is Aspire suitable for both early-stage and established startups?
Absolutely, Aspire caters to the needs of both early-stage and established startups. Whether you're just beginning your entrepreneurial journey or have an established business, Aspire offers tailored financial solutions to help streamline your operations.
From managing expenses and optimizing workflows to providing valuable financial insights, Aspire's platform is designed to adapt and scale with your business as it grows. The flexibility and scalability of Aspire make it a suitable choice for startups at various stages of development.
Is there a minimum balance required for Aspire Business Accounts?
No minimum balance is required to keep your SGD, USD and IDR* Accounts activated.
However, we recommend keeping your subscription plan amount available on your balance to ensure you're up to date with your payment every month.*
To create a recipient or make any transaction on your IDR Account, you'll need to have a minimum balance of IDR 10,000 on your account.
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