What is a corporate virtual bank card and how does it work?

What is a corporate virtual bank card?

The corporate virtual bank card is a means of payment associated with a business account. It is the opposite of the physical bank card, and offers greater security than the latter.

As its name suggests, the virtual card is therefore dematerialized . In other words, it has no physical support . It is used via un smartphone ou a computer to make online payments.

How does it work?

There are two types of virtual card:

The single-use card

It's also known as an ephemeral or "disposable" card. As its name suggests, it is generated for a one-off purchase. It is therefore ideal for paying expenses This type of card protects against the risk of piracy. It becomes unusable once the transaction has been completed.

A new card is generated for each transition. To use it, simply enter the card number to validate the payment.

This type of card is ideal for keeping company costs down, because a card is created for each type of expense, and the authorized amount is defined as a whole.

The recurring-use card

As its name suggests, it is used recurring, regular or automatic payments, This makes it ideal for automatic expenses or regular supplier invoices.

Here too, you can set a validity date beyond which the virtual card becomes null and void.

To use it, simply provide the card code for the first payment . Other payments are then made automatically.

How a virtual bank card works

The virtual bank card is associated with a pro account . It can be set in real time l.You can also :

• Fixing a ceiling

• Credit an amount

• Set a validity period

• Etc.

You can also set the days on which transactions may be carried out, or the type of purchase allowed.

Depending on the service provider you choose, you'll find a wide range of configuration options. It's all done from the interface of a dedicated tool.

The bankcard thus offers real flexibility, and the company retains total control over its use.

The benefits of a corporate virtual bank card

As you've probably already realized, the virtual corporate bank card offers a number of advantages. Here are the main ones:

Enhanced safety

This is one of the very first advantages of the virtual bank card. By using a virtual card, the user is not required to disclose its account number . Simply enter the card number. There are less risk of information leakage .

What's more, this security feature is all the more obvious when you use a single-use card. It cannot be misappropriated, because it can only be used once. This reduces the risk of fraud.

In addition, the validity period of the single-use virtual card est trop courte to give hackers the opportunity to intercept any data linked to the user. In case of doubt, it is still possible to suspend or deactivate a virtual card, which is not possible with a physical card.

As it is dematerialized, the virtual card cannot be lost either. Theft remains a possibility, but you can prevent it by deactivating the card or tracking it online.

The flexibility of online payments

The virtual card also offers real flexibility. You can create a single-use virtual card at any time to pay for your purchases.

Creating a card is quick and easy, as all you have to do is log on to your bank's application. Limits can be set/modified at any time, and the card can be credited. The company director has total control over card management and use.

In addition, card data can be automatically transferred to the company's accounting software.

The virtual card can also be a way of protecting yourself when shopping on a high-risk site. Simply create a single-use card that disappears once the transaction has been completed.

Expenditure control

The use of virtual cards enables optimize expense management . We say goodbye to expense accounts and their associated constraints, both for the employee who has to advance his or her business expenses, and for the accounting teams whose workload becomes heavier.

On the other hand, the company director can maintain real-time visibility of expenses through a dedicated platform. set daily, weekly or annual ceilings. It can also set other parameters to better limit the risk of fraud.

For example, he can block the virtual card at weekends.

The disadvantages of a virtual bank card

Despite its many advantages, the virtual bank card also has its drawbacks:

Limits of use

Limits on use can also be a hindrance to the smooth running of the company. As they do not always have a bank card at their disposal, employees have to wait for the manager's decision and the creation of a virtual card before they can take action.

This can be detrimental to employee efficiency and responsiveness.

Additional charges may apply

Using a virtual card can generate additional costs . That's why you need to take the time to understand the different offers before choosing your virtual card.

Comparison between physical and virtual bank cards

The virtual bank card has both similarities and differences to the physical card.

In terms of differences, the virtual card has no physical support, unlike the physical card.

What's more, virtual cards are generally temporary. This is not the case with a physical card.

Just like a physical card, however, it can be used to carry out online transactions such as purchasing supplies or paying for subscriptions to online services.

The virtual card also has the same characteristics as the physical card, with a card number, a validity date and a card verification code (CV ).

Common uses for a corporate virtual bank card

Companies generally use virtual bankcards for specific types of purchases:

Online shopping

Virtual bankcards are particularly suitable for online purchases. When it comes to security risks on the Web, the virtual bank card can be an effective solution. avoid disclosing your account information to prevent hacking.

Virtual cards are therefore a secure solution for making your online purchases with complete peace of mind.

Subscriptions and recurring services

To pay for recurring subscriptions and services, you can also use a recurring virtual bank card. This allows you to automate your recurring payments and centralize them from a single interface.

Managing one-off expenses

Using a single-use virtual bank card allows you to set up a payment card for one-off expenses. All you have to do is set up a card for each new purchase.

It's an ideal way to to limit card costs and better manage expenses.

How do you choose the best virtual bank card for your business?

Given its strategic importance to the smooth running of your business, it's important to choose the right virtual bank card. Here are the main selection criteria:

Price list

Cost is a fundamental factor in choosing any type of service required within a company. To maximize profitability, a company should always opt for services offering the best value for money.

Virtual bank cards are no exception. More and more banks are offering a free virtual card. Others charge for specific services such as foreign currency transactions, incident fees, etc.

In addition to account maintenance fees, there are also additional charges to consider.

On the other hand, you also need to pay attention to the other services and functionalities offered and associated with the banking offer.

Services

Some virtual cards offer a complete range of services, including insurance, ceiling management, real-time expense tracking, customer service availability, etc. .

The most basic cards are generally free. So, if you're looking for higher-end services, you'll have to look to the more expensive bank cards. However, you should always ask yourself whether all the services offered match your company's needs.

Company needs

In fact, this is the very first thing you need to do before choosing a bank and a virtual bank card for your business. In particular, you need to ask yourself the right questions.

What services does your company require? What are the most common types of transactions you carry out? Do you need single-use cards or recurring-use cards?

Answering these preliminary questions will enable you to choose your corporate virtual card and better understand the different offers available on the market.

Which banks offer corporate virtual cards?

Several types of bank now offer virtual bank cards. We can categorize them into 3 types:

• Traditional banks such as Crédit Agricole, BNP Paribas and Société Générale

• Online banks such as Fortuneo, Boursorama, ING or Hello Bank.

• Neobanks such as Hero, Revolut, N26 and Qonto .

However, features, services and functionalities vary from one company to another. It's a good idea to read and compare the different offers carefully, so you can choose one that's right for your business.

Heropay: the bank card with the free pro account

Heropay offre a pro account with a free virtual card .

We have 3 offers to suit different needs, one of which is free. The virtual card is available with the free offer.

In a nutshell, Hero is :

• A free pro account with physical and digital bank cards and a deferred payment option

• An online payment solution at unbeatable prices

• Flexible, no-obligation financing solutions (BNPL in B2B, accelerated payment on marketplaces (Amazon...), receivables and debt financing)

In this way, a corporate virtual bank card offers many advantages. In particular, it offers greater security for online transactions and more effective control over company spending. Discover all the advantages of a virtual bank card free of charge with Heropay's free pro account.