Virtual Cards (V-Cards): Three Major Benefits

By Karen Wainwright

September 28, 2018


Problems continue with any AP department.

Criminals are constantly on the pursuit for your money. Professionals in B2B need automated payment systems.
Millennials want to work with modern technology.

Have you heard this before? Let’s see how the solution could be with V-Cards.


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How do they work?

Let’s define a V-Card and how it contrasts to a classic credit card that’s in your wallet or to use at work paying invoices. A credit card is a plastic card with 16 digits and an expiration date to use for purchases or payments. It has a fixed spending limit. A V-Card is a one-time use credit card that is specifically designed with a fixed amount to pay for a specific invoice or invoices. The account number constantly changes which helps thwart fraud and make the payment process easier. Let’s now look at many benefits of using V-Cards.


Theft doesn’t just come in the form of credit cards and paper checks. Take a moment to read Steve Endow’s account of his experiences with ACH theft: My Experience with ACH Fraud: My bank account was empty in 3 days

There are countless articles on the web explaining once you hand over your bank account and routing numbers, there are virtually no absolute safeguards in place to ensure you won’t be the victim of theft. This should be a grave and immediate concern for any company or organization.

Ease of Use

V-Cards are now an integral part of any accounts payable process. While you are writing checks, processing EFTs and/or ACHs and generating Positive Pay files, these V-Cards fit very well into your current processes if your vendors will accept them. Many vendors will gladly work with them these days because they are looking for more expedient payments.

Some V-Card services offer rebates for customers who qualify. Typically, the service will analyze spend and how many vendor checks you write monthly to see if you meet certain thresholds. This analysis may include payments to other providers who accept credit cards, such as contractors, medical providers and agents, for example.

The payor won’t incur any charges, conversely, they will benefit financially with the above-mentioned rebates. V-Cards will fit into your everyday batch-building processes. V-Cards are less expensive to process. As we mentioned in a previous blog post, the average cost of cutting a check is $3.00, but other analysts say that it’s higher. Many AP professionals dream of the time when they can focus upon more strategic projects, so V-Cards can only help reduce the time spent on securing discounts, improving reporting and protecting data from other threats.

The Future

If the above data and conversation doesn’t sway you, then ponder the future. Think about hiring new staff in the millennial generation. Studies and reporting indicate that this new crop of AP professionals will expect to see paper-less payment systems in place or will drive initiatives to implement them. Theirs is a world of paying by apps, modern technology, instant results. Hiring is highly competitive. Do you want employees who will drive innovation and efficiency?

V-Cards will solve lots of current and future problems and deliver you into a modern era. The time is now to act upon this technology.