Credit cards issued to the employees of a certain company to make business-related payments are called Corporate credit cards. This card can pay for expenses such as hotel stays and plane tickets when traveling for business. These credit cards are also commercial credit cards, which may be used to cover business expenses, and many of these cards even come with offers and perks.
Some key points of issuing corporate cards for employees include easy access to manage expenses. In addition, these cards are mostly given to larger organizations and are quite different from the business cards provided to sole proprietorships. Before making any changes, employees need to learn and implement their company’s corporate credit card policies. Lastly, the employee or the employer pays the credit card bill, depending on the card. A business firm can issue various corporate cards, such as a corporate credit card, a corporate debit card, or a virtual credit or debit card.
A corporate credit card has the key advantage of making expense management easier for employers and employees. From a business perspective, a corporate card lets the employers place limits on the spending of each transaction by the cardholders or per spending category all over. The company also has the authority to control where the card can be used, limiting the purchases from specific merchants, types of merchants, and locations.
Furthermore, virtual cards, also known as electronic cards, are stored in a digital wallet or a bank app. They access like debit or credit cards but can be issued in a digital form only and not physically.
A virtual debit card works similarly to a normal debit card; the only difference is that a virtual debit card exists entirely on your device and is run via bank and payment apps. The bank issues a virtual card number for online purchases or contactless payments by holding the cell phone to the card reader. However, a virtual credit card also works in the same way as a virtual debit card. Once the bank approves you for a credit card, you can avail of one and use it digitally through bank apps or online payment platforms.
The qualification process for a virtual debit card is instant, and the customer isn’t subject to the stringent financial requirements of the process of availing of a virtual credit card. Which is a major benefit of a virtual debit card. A few benefits of helping a virtual debit card include the following:-
Security-Using a debit card virtual, with the added benefit of security, comes with virtual numbers that cannot be used for tracing back to your bank account or debit card information. Hence, they’re quite safer. You can issue single-use authorization codes to protect your account from fraud with a virtual payment card. It is similar to adding two-factor authentication to your digital card and ensuring only the assigned cardholder completes the transaction.
Spend control: Virtual cards allow limits on the card’s spendings.Some virtual card account services even allow you to control the locations where a specific card can be used for payments.