The Global Virtual Card Market is projected to grow to $37.5 billion by 2028, with an anticipated compound annual growth rate (CAGR) of 19.1% over the forecast period. These cards offer a secure alternative to traditional payment methods for hotel payments by generating unique numbers for each transaction, significantly reducing the risk of fraud.
Additionally, virtual cards can be easily issued and managed through digital platforms. This leads to a smoother, more efficient payment experience, making them ideal for hassle-free transactions in the corporate travel environment.
This blog explains the types of virtual travel cards and how they help streamline hotel payments in corporate travel.
What is a Virtual Card?
Virtual cards are digital versions of physical payment cards, such as credit or debit cards. They are typically issued by banks and can be used for online purchases or transactions where a physical card is not required.
These cards are generated electronically and often have a unique 16-digit card number, an expiration date, and a 3-digit security code, just like physical cards.
One of the USPs of virtual cards is that you don’t need to wait for the card to be delivered. You can create them instantly and use them for online payments right away.
Business travelers can use a virtual card to book hotel reservations online. They provide a secure method of payment without the need to disclose sensitive credit card information.
How Does a Virtual Card Streamline Hotel Payments?
Suppose a traveler needs to book a hotel room for a weekend getaway. They visit a hotel booking website and select their desired accommodation. During the payment process, instead of using their physical credit card or a traditional virtual card, they opt to generate a single-use virtual card specifically for this transaction.
Upon selecting the option to generate a single-use virtual card, the traveler’s bank or payment provider creates a unique card number, along with a temporary CVV (Card Verification Value) and expiration date. The traveler then uses this single-use virtual card to complete the payment for the hotel reservation.
The single-use virtual card becomes invalid once the transaction is processed and the hotel payment is successfully made. Even if someone were to intercept the card details, they would be unable to use them for any other transactions, providing enhanced security for the traveler.
In this scenario, the single-use virtual card offers peace of mind to the traveler by ensuring that their payment information is protected and that the card details cannot be used for unauthorized transactions after the hotel booking is completed.
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Different Types of Virtual Cards in Corporate Travel
Single-Use Card
A single-use virtual card, or a disposable or one-time-use virtual card, is a unique payment card number generated for a single transaction or a limited time period.
Once the card is used for a transaction, it cannot be used again, hence the term “single-use.” This type of virtual card enhances security by reducing the risk of unauthorized transactions or fraud, as the card details become invalid after the intended transaction is completed.
Recurring Card
A recurring virtual card is a virtual payment card designed for repeated transactions with the same vendor or service provider. Instead of issuing a new card for each transaction, a recurring virtual card maintains the same card number, allowing it to be used multiple times for ongoing payments, such as monthly subscriptions or regular services.
This type of card offers convenience and efficiency. It eliminates the need to generate new card details for each transaction, streamlining payment processes for businesses and consumers.
For instance, let’s say a sales team frequently travels for client meetings and often stays at a specific hotel chain. The company can set up a recurring virtual card specifically for hotel bookings with that chain. Whenever a team member needs to book a hotel room, they simply use the recurring virtual card details to pay for the reservation.
Benefits of Virtual Cards for Corporate Travel
Virtual cards for travel offer several advantages for business travelers. Major ones include:
Pay At Hotel
- Convenient Payments
Virtual credit cards make payments for hotel bookings more efficient, especially on-site payments. By opting for virtual cards, businesses significantly reduce the administrative burden of manual bill submissions and delayed payment processing. Plus, it allows employees to pay for hotel expenses easily without waiting for reimbursement.
Enhanced Security
According to a report, a one-time virtual card significantly decreases fraudulent activities, reducing them by approximately 22-28%.
- Protection Against Fraud
Virtual travel cards offer enhanced security features like secure single-use card numbers and real-time transaction monitoring. These features decrease the risk of fraudulent activity during business travel. Plus, the cards have spending limits and expiration dates to prevent misuse.
- Secure Transactions
Each virtual card generates a unique, single-use number for transactions, ensuring that business travelers’ card information remains protected from unauthorized use.
Improved Expense Management
- Simplified Tracking
Virtual cards provide detailed transaction records, making it easy for business travelers to track their expenses and stay organized during their trips.
- Efficient Reconciliation
With comprehensive transaction data readily available, business travelers can reconcile their expenses quickly and accurately, facilitating timely reimbursement processes and reducing the likelihood of errors.
Seamless Integration
- Smooth Booking Experience
Virtual travel cards integrate seamlessly with corporate travel management software. It ensures a hassle-free reservation process for business travelers, regardless of the platform they use.
Instant Payments In Case of Emergencies
- Facilitates Quick Solutions in Emergencies
Unexpected costs can arise during business trips, causing frustration if traditional payment methods are not instantly approved. Virtual corporate cards offer a rapid solution to such situations.
- Instant Resolution for Forgotten or Misplaced Cards
When employees forget or misplace their physical corporate cards, single-use virtual corporate cards provide an immediate remedy. By swiftly creating and assigning virtual cards for travel, organizations can ensure uninterrupted payment capabilities for their employees, preventing any disruptions to their travel plans.
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Leverage itilite for Corporate Hotel Payments
We hope this blog helped you understand virtual cards. Experience the absolute convenience of seamless transactions with the itilite virtual card solution. itilite doesn’t limit the number of virtual cards you can request for your team, offering unlimited flexibility to suit your business’s specific needs.
Seamlessly integrate them with the itilite mobile app for pay-at-hotel bookings. Alternatively, you can integrate virtual cards with Apply Pay for effortless tap-and-pay transactions, simplifying the entire process.
These cards offer improved security and cost management, allowing you to manage hotel expenses effortlessly. Empower your business with the efficiency of an Itilite travel and expense management solution.
Book a free demo to know more.
