What is a Virtual Card?

Comdata virtual cards allow you to deliver electronic payments using a secure, single-use Mastercard account number. Virtual cards are an alternative to checks and ACH payments and are accepted anywhere Mastercard is accepted. With virtual cards, you can set specific dollar amounts and expiration dates, thus emphasizing the protection of your company’s assets.

Since these are credit card payments, you can earn rebates on every dollar spent – similar to the way consumers earn cash back on personal credit cards. Virtual cards provide you access to monthly rebates on spending, consolidated invoices, ability to leverage existing vendor pay cycle terms, and reduced fraud and manual errors associated with paper and physical credit card payments.

Virtual cards eliminate many of the burdens and overhead involved with traditional paper and physical card payments, such as lost or stolen checks, fraudulent activity, and processing time. For instance, say you need to pay a vendor for supplying tables and chairs at your restaurant. Yet, the vendor only accepts check payments, which is a burdensome, slow, and an outdated payment method. With a virtual card, the vendor will receive your payment quickly and securely, reducing turnaround time and risks. The virtual card payment process includes:

  • You approve invoices and make a payment from your accounting system as you do today.
  • Comdata assigns a virtual Mastercard account number to your specified dollar amount. This includes the detailed remittance and your system generated payment number.
  • The vendor receives and processes the virtual card, which settles within 24-48 hours.
  • Comdata sends you a file of all transactions for automated reconciliation, similar to a positive pay from the bank.
  • Your company gains peace of mind with reduced fraud risk, time savings, and a streamlined process.

A variety of finance-related positions, such as accounts payable administrators, billing associates, and finance managers.

Key benefits include:

  • Improving cash flow through rebates on your business spend, turning your accounts payable into a revenue generator.
  • Mitigating risks by processing all vendor payments via a safe and secure platform, reducing the chance of lost or stolen checks or physical cards.
  • Reducing costs and paper associated with paper check payments, such as loading, printing, and disbursing checks.
  • Streamlining payment and reconciliation processes by integrating virtual cards into your financial or ERP system.

Resources

Use Virtual Cards

These materials to walk you through using Virtual Cards.