Should I choose a Virtual or Physical Card for My Business?

What Are Corporate Cards?

Corporate cards are payment cards issued to employees for business-related expenses. They help companies manage spending, simplify accounting, and reduce the need for reimbursements. 

There are two types of corporate cards: a physical one and a virtual one. 

Virtual Corporate Cards

Virtual corporate cards are digital payment cards that exist electronically. They have a unique card number, expiration date, and security code, just like physical cards, but are accessed via a digital platform.

Benefits of Virtual Corporate Cards

Virtual corporate cards offer enhanced security, with single-use or transaction-specific cards that limit fraud risk and the ability to instantly issue or cancel cards. They improve spending control through customizable limits and real-time expense tracking, ensuring detailed oversight. Additionally, they provide convenience by offering instant access without the need to wait for physical card issuance, and they integrate seamlessly with digital wallets for easy mobile payments. Stripe, Ramp, Pleo and Dizzy are some well-known examples of virtual cards. 

Virtual corporate cards serve diverse use cases. For SMEs, they simplify management of online subscriptions, secure e-commerce purchases, and provide remote teams with funds without needing physical cards. Large corporations use virtual cards to allocate departmental budgets, control project-specific spending, and streamline vendor payments.

Physical Corporate Cards

What Are Physical Corporate Cards?

Physical corporate cards are tangible payment cards given to employees for business expenses, usable both in-person and online. They offer universal acceptance, allowing transactions at most merchants and ATMs, including offline locations where digital payments aren’t accepted. These cards are especially convenient for travel-related expenses like meals, transportation, and lodging, with the added option to withdraw cash if needed. Their familiarity also makes them user-friendly, as employees are already accustomed to handling physical cards.

How can businesses use them?

Physical corporate cards support SMEs with local purchases like office supplies, equipment, and travel or entertainment expenses during business trips. For large corporations, they are valuable for global operations, particularly in regions with limited digital payment options, and for field teams, such as sales or service technicians, who need to make purchases while on the go.

Virtual and physical cards - a comparison

Using Corporate Cards with Verto FX

Verto FX offers both virtual and physical corporate cards, providing flexible solutions tailored to the needs of UK businesses, whether SMEs or large corporations.

Verto FX Virtual Corporate Cards

Verto FX virtual corporate cards offer businesses instant issuance and customizable controls, allowing spending limits, expiry dates, and merchant restrictions to be set per card. Real-time expense tracking and integration with accounting software improves financial oversight.

These cards enhance security by reducing fraud risk through single or limited-use options and provide flexibility for project or vendor-specific spending. They are also more cost-efficient with lower fees compared to traditional cards.

Verto FX Physical Corporate Cards

Virtual cards allow for global acceptance of payment with robust controls like spending limits and detailed statements, supported by dedicated customer service. This empowers employees to handle business expenses easily. For businesses, the cards enhance operational efficiency, provide clear spending accountability, and allow employees to make purchases without waiting for reimbursement.

Which card is right for your business?

Picking the right card for you depends on the unique needs of your business. 

Virtual cards are well-suited for predominantly online expenses, providing a secure and convenient solution for digital transactions. They offer enhanced protection against fraud and can be issued instantly, making them ideal for immediate needs. Virtual cards are also perfect for remote or international teams, offering global access to funds, and are generally more cost-effective due to their lower fees, making them a good choice for budget-sensitive operations.

On the other hand, physical cards are more appropriate for in-person transactions, offering a reliable option for face-to-face purchases. They are suited for controlled environments, where strict policies ensure security. They work best when cards need to be ordered in advance. Physical cards are also ideal for on-site staff handling daily operational expenses, providing a comprehensive solution for a wide range of needs.

Combined Approach

Many businesses benefit from using both virtual and physical corporate cards. This hybrid strategy allows companies to leverage the advantages of each type, aligning with specific needs and scenarios.

Real-World Examples

Virtual card use case

A UK-based marketing agency frequently purchases online advertising and software subscriptions. With a risk of fraud and unauthorized charges and trouble tracking multiple small expenses, they needed more transparency and insight into online expenditure. 

With Verto FX, they issued virtual corporate cards for each subscription service that came with monthly spending limits and expiry dates. They achieved enhanced security and limited exposure with the ability to streamline their expense tracking and reconciliation processes.

Physical card use case

A multinational company with UK headquarters faced challenges in managing and reimbursing travel expenses for employees across different regions while ensuring compliance with company spending policies. The solution was to partner with Verto and provide traveling employees with physical corporate cards, implementing spending limits and real-time monitoring. This approach simplified expense management, improved policy compliance, and enhanced employee satisfaction by eliminating reimbursement delays.

Getting Started with Verto FX Corporate Cards

1. Assess Your business needs

• Determine the types of expenses and transactions your business handles.

• Identify the employees or departments that require corporate cards.

2. Choose the right card type

• Opt for virtual cards for online transactions and enhanced security.

• Select physical cards for in-person expenses and travel needs.

• Consider a combination of both for comprehensive coverage.

3. Sign up with Verto FX

• Sign up to register your business.

• Complete the necessary verification processes.

4. Configure card settings

• Set spending limits, merchant categories, and other controls.

• Assign cards to employees or departments as needed.

5. Integrate with your systems

• Sync with accounting and expense management software.

• Utilise Verto FX's platform for real-time monitoring and reporting.

6. Provide training and guidelines

• Educate employees on card usage policies and best practices.

• Ensure understanding of security measures and compliance requirements.