Here’s Why You Should Make the Switch to Virtual Credit Cards for Your Business

Written by
Marissa Saini
Last Modified on
June 25, 2024

Regardless of which stage you are in your business growth, a business credit card can provide plenty of financial benefits for you and your company. While the concept of business credit cards for startups isn’t anything out of the ordinary, there’s a new entrant in the market that’s making waves among modern entrepreneurs: virtual cards. 

What are virtual cards? 

Virtual credit cards aren’t as complicated as they appear. Just as its name suggests, they are payment devices that are created and used entirely online. It works the same way as an ordinary credit card, except without the plastic (or metal, if you fancy). One of the main benefits of this business credit card for startups is that you no longer have to worry about losing your physical card; ideal for those who are often forgetful. 

Similar to a physical credit card, a virtual one is generated through a 16-digit credit card number associated with your account. Since you won’t have a physical card in your hand when making transactions, virtual payments can be easily done through a mobile app or website. As long as the online merchant accepts credit card payments, virtual cards can be used anytime and anywhere.

Benefits of using a virtual credit card for business 

• It provides added security for users

• It streamlines your accounting and reconciliation processes

• It reduces the risk of manual data errors

• It empowers your employees

• It will never be stolen

1. It provides added security for users

When it comes to all things digital, traditional business owners may still be sceptical about the concept of virtual cards. However, these business credit cards for startups actually add an additional layer of protection and can be considered safer than physical cards. 

Unlike physical cards, you can limit the amount of personal information shared when purchasing by protecting your Personally Identifiable Information (PII). This encrypts your account numbers and tokenized data, making them useless to potential hackers. Since they aren’t tangible items, it is also impossible for them to be cloned. On top of that, virtual cards are typically issued by reputable card providers such as Mastercard and Visa, which offer the same security features as physical cards. 

2. It streamlines your accounting and reconciliation processes

Tired of going through the hassle of uploading expense receipts and matching them to your card expenses? With virtual cards, you can say goodbye to manual data entry for good.

Virtual cards can be assigned to as many team members as possible or even just a specific person. With these cards, employees can easily reconcile company expenses and identify the right people for these transactions, saving considerable time on laborious accounting tasks. Whether it’s QuickBooks or Xero, the Aspire Virtual Card allows users to seamlessly sync to their accounting software through direct integrations. 

3. It reduces the risk of manual data errors

Raise your hand if you’re guilty of incorrectly keying in your credit card number at least once in your life. To make online transactions and payments even simpler, another virtual card benefit is to copy the card numbers in your web browser instead of manually entering them. 

Not only does this reduce the risk of errors but it also saves you heaps of time, which could be spent growing your business instead. 

4. It empowers your employees

Instead of having just one business credit card being passed around, virtual cards can be issued to trusted team members for necessary company expenses. Being issued with their own card not only empowers employees to take ownership of their spending but also improves accountability at the same time. 

With designated cards, team members no longer have to shell out out-of-pocket expenses beforehand and can skip the whole reimbursement process altogether. 

5. It will never be stolen

If you’ve ever lost or had your credit card stolen, you’ll know how inconvenient the cancellation and renewal process can be. Upon cancellation, you need to wait for a new one to be issued and pay the necessary charges. With a virtual card, there’s nothing of this sort. 

First of all, it’s impossible to be stolen as it’s physically non-existent. However, if you ever need to cancel a card, the process is far more simple. 

Where can I get a virtual card in Singapore? 

As one of the few countries pioneering the virtual card movement in the region, there are already several card providers offering such electronic cards. 

Here’s a list of providers that offer virtual cards in Singapore: 

• Volopay

• Wise

• YouTrip

• Canvas

• Aspire

Make the Switch with the Aspire Virtual Card 

Despite the finance industry being a highly regulated sector, we are seeing a global phenomenon where retail finance providers are going digital. In fact, the pandemic has driven most financial service providers to boost their digital offerings, including those in Singapore. 

But here at Aspire, we were one of the first pioneers to the Aspire Virtual Card, that founders can use to streamline e-commerce payment processing, earn cash back rewards on marketing spend, and save with low transparent fees. 

All of that and more for absolutely no cost. Ready to get started? 

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About the author
Marissa Saini
is a seasoned writer and an avid trendspotter across business finance, personal finance, travel and lifestyle industries. With writing history at SingSaver, INK, and ohmyhome, Marissa leverages her broad range of experiences to simplify finance and make readers financially savvy.
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