What is Virtual Card Payment?

Definition

Virtual Card Payment is a digital payment method where a temporary or single-use card number is generated for secure transactions with vendors or service providers. Unlike physical cards, virtual cards are used for online or electronic payments, improving security, traceability, and payment efficiency.

Key Features

• Secure Transactions: Virtual cards reduce fraud risk and enable strong Payment Verification Control for each transaction.

• Authorization and Controls: All payments require proper Vendor Payment Authorization and follow Payment Segregation of Duties to prevent unauthorized access.

• Automation and Reconciliation: Integration with Payment Automation (Treasury) systems and Corporate Card Reconciliation ensures accurate posting and timely reporting.

• Financial Strategy: Supports Early Payment Discount Strategy and Early Payment Discount Policy initiatives by enabling controlled, predictable disbursements.

• Monitoring and Analysis: Virtual card usage provides insights for Customer Payment Behavior Analysis and tracking Payment Failure Rate (O2C) or Payment Failure Rate (AR) for process improvement.

• Integration: Works seamlessly with Payment Gateway Integration to process transactions efficiently and securely.

Summary

A Virtual Card Payment is a secure, temporary digital card used for electronic transactions. With integrated authorization, automation, reconciliation, and strategic payment controls, it enhances security, efficiency, and financial oversight.