Virtual Card Issuer Benefits for Businesses and Users

Virtual card issuers offer numerous benefits for both businesses and users. They provide a secure and convenient way to manage expenses, reduce financial risks, and increase control over company spending.

Businesses can enjoy improved financial management by automating expense tracking and reporting, which can be done in real-time. This allows them to stay on top of their finances and make informed decisions.

Users, on the other hand, can benefit from increased security and reduced liability, as virtual cards can be easily cancelled or suspended in case of loss or theft.

A virtual card issuer is a company that specializes in issuing virtual credit cards, also known as digital cards or e-cards.

These virtual cards are typically issued to customers as a digital representation of a physical card, and they can be used for online transactions, such as making purchases or paying bills.

Virtual card issuers often partner with banks and financial institutions to offer their services, and they may also provide additional features like budgeting tools and rewards programs.

Virtual card issuers typically don't issue physical cards, and the digital card is stored on the customer's mobile device or in their online account.

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A virtual card issuer is a company that provides you with a virtual credit card, which is a digital version of your physical card. This digital card has a unique 16-digit number, expiration date, and CVV code that's different from your actual card.

The virtual credit card is designed for card-not-present transactions, which are online purchases or payments where you're not physically present at the point of sale. This type of transaction is more vulnerable to fraudulent activity, but a virtual card helps safeguard your credit card details.

You can generate disposable virtual card information for online transactions, which is a security feature that protects your credit card details from being stolen. This way, even if your virtual card information is compromised, your actual card details remain safe.

Virtual credit cards function like your regular credit card but without a physical form. They allow you to make secure online payments without exposing the payment details of your primary card.

You can usually generate and manage virtual credit cards online, with options to create unique numbers, set spending limits, freeze or cancel cards, and track card spending.

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A virtual card issuer is a company that provides virtual card services to businesses and consumers. By 2027, virtual debit and credit cards could generate $71B in revenue for US businesses that offer them, according to a recent forecast from Juniper Research.

Virtual cards can be created instantly, allowing customers to make payments within moments. This speed is one of the key benefits of virtual cards, making them a convenient option for businesses and consumers alike.

The benefits of virtual cards don't stop there. They also come with minimal costs associated with generating virtual cards, making it easier for businesses to create as many as needed. This is a significant advantage, especially for companies that need to issue a large number of cards.

Here are some of the key benefits of virtual cards:

Virtual cards offer great benefits for online purchases, providing privacy, convenience, and cost-efficient control for both personal and business payments.

With virtual cards, you can create unique numbers for different transactions, set spending limits, freeze or cancel cards if needed, and track card spending. This level of control is especially useful for businesses, as it helps to set guardrails and increase transparency around expenses.

Some virtual cards even allow you to add them to mobile wallets like Google Pay or Apple Pay, making it easy to make contactless payments at certain retailers.

Here are some key features of virtual cards:

Offering users convenient and flexible payment options is key to enhancing their experience. This can be achieved by providing virtual credit cards that offer great benefits, such as privacy, convenience, and cost-efficient control.

Virtual credit cards can be created online, allowing you to generate different numbers for different transactions. You can set spending limits for each card, which is a great way to control your spending.

Virtual cards can also be used for card-not-present transactions, including online shopping on ecommerce websites and paying streaming services. This makes it a convenient option for users who want to make secure online payments.

Here are some benefits of using virtual credit cards:

These features can be managed online, making it easy to keep track of your transactions and stay in control of your spending.

Having a variety of funding options can make a big difference in how you manage your finances. Different card funding types can be a convenient solution for those who need it.

Just-in-time funding is available, allowing you to access funds as needed. This can be especially helpful for unexpected expenses or last-minute payments.

You can choose how your customers request or generate their virtual cards. Businesses have the flexibility to make it an automatic process, issuing a virtual card as soon as a customer creates a bank account.

Some businesses make it as easy as tapping a button in an app. You have a lot of freedom here to think through how you'll create the ideal user experience.

Here are some ways to make requesting or generating a virtual card easy for your customers:

These options can help streamline the process and make it more convenient for your customers.

Going global with your card issuing capabilities can be a game-changer for your business.

You can issue virtual cards to customers or employees, making it easier for them to make purchases online or in-store.

Issue physical cards for those who prefer a more traditional payment method.

Control approvals and expenses to keep everything organized and within budget.

Enable push-to-card payments for a seamless and secure payment experience.

Create loyalty programs to reward your customers and keep them coming back for more.

Here are some key global card issuing features at a glance:

Virtual cards can be used in a variety of ways to simplify and streamline business expenses.

For example, Shopify and Mesh use virtual corporate cards to set guardrails and increase transparency around business expenses.

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You can set expiration dates for certain cards, monthly spend limits for vendors, and even merchant-specific limits to restrict purchases to specific purposes.

With virtual cards, your business can start making purchases and earning interchange within moments.

Roofstock and Chime are companies that have successfully implemented this feature.

You can even automatically issue a virtual card while your customers wait for their physical card to arrive.

Virtual cards can also be used to manage merchant-specific purchases and subscriptions.

Eno by Capital One and Divvy use this feature to create cards that can only be used with a specific merchant after a purchase is made.

For instance, a card used to pay for a Netflix subscription can only be used with Netflix thereafter.

Virtual cards can also be used to pay independent contractors and employees, ensuring they receive prompt payment.

Uber and DoorDash use virtual cards to pay their staff instantly, adding the payout to a virtual debit card.

Finally, virtual cards can be issued for one-time use, automatically expiring after a single payment.

This can protect the end-user's information from data breaches and make it easier to sign up for free trials.

Companies like Privacy and Ironvest have successfully implemented this feature.

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There are two ways to issue virtual cards, and the choice between them can drastically impact your time-to-market and resources needed. You can either work with a bank, processor, and network without a platform, or work with a bank, embedded finance platform, processor, and network.

If you decide to go without a platform, you'll need to establish partnerships with a bank, processor, and network, which can be a complex and time-consuming process. You'll need to find a bank partner, negotiate and execute a contract, and build technical integration between your bank and card processor.

To issue virtual cards without a platform, you'll need to establish partnerships with a bank, processor, and network. Here's a breakdown of the key players involved:

Working with a platform, on the other hand, can simplify the process. With a platform like Unit, you can make an API call to issue virtual cards, and the platform has already optimized the relationships between the bank, processor, and network.

If you're looking for a more convenient option, you can request a virtual card number through your bank or credit card issuer's online services. This is often done through a section related to "Card Management", "Virtual Cards", or "Digital Cards." Once you generate a new card number, you can customize it with features like spending limits, expiration dates, and merchant restrictions.

Virtual cards require the same level of compliance as physical cards, starting with a compliant Know Your Customer (KYC) flow. This involves working with your bank and platform partners to build a great KYC flow, which Unit has pre-built to streamline compliance.

Virtual cards can be safer than physical cards for end-customers, as they can't be physically lost and have many safeguards on phones, devices, and websites to ensure the cardholder is accessing the card. These safeguards include expiring the card after one use, limiting its use to specific merchants and categories, and enforcing spending limits.

Virtual card programs adhere to rigorous data-storage standards, following the Payment Card Industry Data Security Standard (PCI-DSS) requirements that banks and credit unions follow. This process is less involved than issuing a physical card, which takes a minimum of six weeks for standard cards and 12-20 weeks for custom cards.

Virtual cards can be safer than physical cards because they can't be physically lost and have multiple safeguards in place to ensure only the cardholder can access them.

There are many restrictions that can be programmed into virtual cards, such as expiring after one use, limiting use to specific merchants, and enforcing spending limits.

These restrictions can reduce the damage that can be done if a card number is stolen.

Virtual card programs adhere to the Payment Card Industry Data Security Standard (PCI-DSS) requirements.

Issuing a physical card is a more involved process that takes a minimum of six weeks for standard cards and 12-20 weeks for custom cards.

Compliance is a crucial aspect of offering virtual cards, and it requires the same level of compliance as physical cards.

In general, virtual cards need a compliant Know Your Customer (KYC) flow, which is required when a customer opens an account and to continue monitoring the account thereafter.

You'll work together with your bank and any platform partners to build a great KYC flow, which can be a complex and time-consuming process if done from scratch.

At Unit, we've pre-built these KYC flows, streamlining the compliance process and saving you time and resources.

You can create virtual or physical cards directly from the web or mobile app, depending on your preferred card products and plans.

Our virtual card issuer allows customers to go cashless using their mobile devices and make payments in different currencies via virtual or physical debit cards linked to their accounts.

Customers can request or generate a virtual card through an automatic process, such as when they create a bank account, or by tapping a button in an app.

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Digital wallets management is also available, enabling customers to easily fund and withdraw money from their e-wallets.

Most digital wallets, like Apple Pay and Google Pay, allow you to generate virtual card numbers linked to your credit card, offering an extra layer of protection when making online payments.

You can also use digital wallets to pay with virtual credit card numbers for in-store purchases, making tap-to-pay transactions at merchants that accept contactless payment a breeze.

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Virtual cards offer a range of benefits for businesses, particularly when it comes to organized spending.

By assigning specific virtual card details, businesses can easily track and categorize expenses, simplifying the accounting and reconciliation process.

Companies can also set spending limits for transactions, preventing overspending and maintaining tight budget control.

This level of control can be especially useful for businesses that frequently purchase online from various vendors.

Virtual business credit cards also provide enhanced security, giving companies peace of mind when making online payments.

By taking advantage of virtual cards, businesses can streamline their spending processes and reduce administrative tasks.

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Issuing virtual cards can be a game-changer for your business, generating significant revenue streams through interchange fees.

You'll earn interchange whether you're offering virtual cards for business or consumer use cases, with the lion's share going to the company whose brand is on the card.

Issuing virtual cards allows you to tap into the growing market opportunity, with global spending volume projected to reach $6.8 trillion by 2026.

By becoming a card issuer, you can earn interchange fees on transactions made by cardholders, creating additional revenue streams for your business.

Issuing virtual cards also provides enhanced security and facilitates organized company spending, particularly for businesses that frequently purchase online from various vendors.

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Peru's fintech landscape is evolving rapidly, with market consolidation playing a significant role in its growth. This process has led to the emergence of larger, more stable players in the market.

Foreign investment has also been a key driver of Peru's fintech ecosystem, bringing in new ideas and expertise that are helping to mature the market. This influx of capital has created new opportunities for fintech development in Latin America.

Market consolidation and foreign investment are driving new opportunities for Latin American fintech development, with Peru at the forefront of this trend.

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