In the global card market, North America accounts for nearly 60% of all credit card transactions. Only 11% of that total represents B2B settlements. Despite the B2B industry’s intention to follow the path that B2C has taken to make credit card acceptance more robust, accounts receivable professionals anticipate that payments via card will grow by just 1.5% by 2020 in the B2B sector.
In face of this stagnant growth, the payments industry is responding by making the virtual card process more integrated with payment acceptance platforms to entice B2B users to adopt card use. A key ingredient to implementing the virtual card across the industry is providing businesses with added functionality to accept vendor payments. The virtual card framework can provide enhanced critical features like improved security (due to their one-time-use nature) and more user-friendly processes.
Single-Use Virtual Cards Can Reduce Errors
B2B payments today typically require a manual process to facilitate transactions. With that, comes the possibility of human error when many people are using different credit cards at different times to make payments. It becomes difficult for businesses to control every employee who collects a credit card number and the process they follow to ensure the payment is complete. The virtual card eliminates this problem.
Since virtual cards are only used once and then disappear forever, their one-time-use function is a huge advantage for paying vendors. Business owners don’t have to worry about the human collection of a card number or how many hands it passes through to complete payment. With the virtual card’s one-time-use feature, it can only be used for its intended purpose.
Virtual Cards Are More Secure
Compared to commercial cards, virtual cards are not as susceptible to cyberattacks and data breaches. Since they don’t have the same association with credit lines that consumer cards do, virtual cards are more secure from fraudsters and are less sought after by these thieves.
Since 2013, businesses have witnessed massive data breaches at large retailers. Those breaches can be traced back as another reason why card adoption has been stifled in the B2B payments market. But the added security surrounding virtual cards could begin to shift thinking around their use.
Can Virtual Cards Overcome Vendor Acceptance?
Contrary to belief, there are suppliers who want to accept cards. Virtual cards offer the speed and ability to make faster payments to vendors and suppliers do want to be paid faster. B2B buyers and suppliers are seeing enhanced security and are reducing costs due to payments being done by one, closed-loop network.
Virtual cards can help minimize the chance of fraudulent charges on accounts while serving to streamline paying suppliers, making employees more efficient, and improving a business’ bottom line.
Learn More About How Virtual Cards Can Streamline Your Payments:
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