Virtual payments, also referred to as virtual cards, are a digital replacement for physical credit cards. Instead of a static number and security code, these elements are randomly and automatically generated via your preferred card issuer—generally, Mastercard, Visa, or American Express. This number is only valid for a limited number of transactions and can be generated with restrictions, such as a spending limit or merchant category.
This technology is ideal for business travel programs, where fragmented credit card and reimbursement policies create challenges for travel managers, travelers, and accountants alike. Virtual payments are particularly beneficial during the hotel booking process.
The Travel Team partners with Conferma to offer virtual payments to our clients.
Why Travel Programs are Adopting Virtual Cards
Risk Mitigation
Virtual payments offer increased security and enhanced expense control. There are no physical cards to be misplaced or stolen, and virtual cards can be terminated and re-generated at any time. Virtual cards can be generated with limits on: the total amount spent; which vendors or merchant categories they can be used with; or the locations they’re valid in. For example, a particular number may be generated for use during an employee’s trip to a specific location for a set number of days.
With every transaction immediately linked to a distinct traveler, booking, or other expense, real-time reporting gives travel management and other teams prompt insight into spending, including anomalies and non-compliance.
Administrative Efficiencies
Travel is more efficient with virtual payments, from booking to reconciliation. Platforms like Conferma allow travel administrators to see all expenses in a single dashboard. Centralized, real-time reporting helps avoid payment delays between travel programs and vendors. Virtual payments can replace checks and bank transfers in some use cases, further reducing time to payment. With transactions immediately visible to travel and finance teams, less of the burden of expense reporting falls on employees as they return to the office.
Virtual cards can be distributed to a larger number of travelers, including non-employee travelers, than physical credit cards, which require a level of trust and impact business-wide credit limits. This availability reduces how much travelers need to cover on their own before being reimbursed, which can be difficult for some employees and reduces visibility into spend, especially in the short term. Virtual cards, generated with limitations, can also be shared with non-employees traveling on your organization’s behalf, such as contractors, clients, and interview candidates.
Powerful Integrations
Virtual payments are a powerful corporate travel tool, but they don’t have to disrupt your travel program. Using virtual cards rarely requires a new banking partner, as most already support the technology for corporate travel.
The Travel Team can integrate your virtual payment solution within existing booking processes, including SAP Concur Travel. Conferma integrates with Hilton, eliminating the need to send virtual payment information to the hotel via email or fax, and making check-in easier for travelers. These industry-specific developments (and others like them) in virtual payment technology make it a more attractive solution for travel programs than ever before.
Virtual payment platforms may also be compatible with your business’s accounting and ERP systems.
If you’d like to learn more about adding virtual payment capabilities to your travel management program, reach out to your Client Success Manager at The Travel Team!
