In the business sphere, corporate cards cover a wide array of business-related expenses, accounting for effective financial operations and management. The financial ecosystem that these cards create can be praised enough. These cards possess the potential to eliminate the tiring and extensive procedure of employee reimbursements, improving the overall efficiency of your teammates. Control breathes and functions in an ecosystem where card-based expense systems dominate.
Corporate cards provide many benefits to the business and employees alike; for instance,
- Increased expense control: Companies have full control over where the cards can be used and where they can’t.
- Effective budgeting: Companies can set spending limits on corporate cards, making budgeting easy. Businesses no longer have to be concerned about providing more money for expenses that they can sustain.
- Real-time monitoring: Company officials can access the dashboard that presents real-time data pertaining to transaction updates and their nature. Companies can easily identify unauthorized transactions and who made them.
- Rewards: Many card issuing companies offer rewards for making transactions through their cards. These rewards can be redeemed through store discounts, air miles, travel perks, etc. Employees and the company can both benefit from this cost-saving scheme.
- Accounting efficiency: Approved transactions are automatically registered, reducing the time spent on data entry. Furthermore, the accounts are free of mathematical errors.
Corporate debit cards can be provided to your employees physically or virtually, depending on your company’s preference.
What are physical corporate debit cards?
Like regular debit cards, corporate debit cards are physical cards used to make payments electronically.
What is a virtual card?
Similar to physical corporate debit cards, these cards are available in a digital format.
While physical and digital cards have the same functionality, they differ slightly. Despite the difference being minimal, you should be aware of the difference to make wise choices for your workforce.
Comparing virtual and physical cards
1. Security:
- Physical corporate debit cards are secured using PINs during physical transactions but are prone to loss, theft, or skimming.
- Virtual corporate cards are secured by multi-factor authentication and can be more secure and shielded against many security threats.
2. Expiration and validity:
- Physical corporate debit cards, like personal debit cards, have expiration dates that may be longer than their virtual counterpart. Once the time frame passes, which could be in months or years, a new card must be issued to the person handling it.
- Virtual corporate debit cards can be issued instantly and expire when the authenticated period passes or the spending limit is maxed out.
3. Acceptance:
- Physical corporate cards may be the preferential choice for most vendors and can be easily used at ATMs.
- Virtual corporate debit cards may be unacceptable for some vendors.
4. Issuance:
- It takes time for the card provider to issue a physical card to the beneficiary. Additionally, it takes time for the card to arrive at its recipient’s place since the courier sends it. Depending on the provider, each corporation may have an issuing limit.
- Virtual cards can be issued instantly to as many employees as the company wants to administer them.
5. Usability:
- Anybody can use the physical card if the card lacks security features, making them susceptible to unauthorized transactions and potential financial loss.
- Virtual cards can be issued to stay valid for a shorter timeframe or a limited expenditure limit.
6. Durability:
- Physical cards are prone to physical damage and may need replacement frequently. Replacements typically take longer to complete.
- Virtual cards are safe from physical damage if the device they’re accessing is in good condition.
7. Notifications and monitoring:
- Notifications for transactions made on physical cards may take longer to arrive, impeding real-time tracking.
- Notifications come instantly when a virtual card is used.
8. Accessibility:
- With appropriate security features in place, only those with access to the credentials can handle a physical card.
- Virtual cards are typically issued to specific individuals, restricting their usability solely to those given the card. In other words, only the designated recipients can use the card for transactions.
Final words
There can be many differences between physical and virtual corporate cards. Each comes with its own set of wins and setbacks. Ultimately, the choice of either card entirely depends on the company’s preference and should be in the best interest of the employees.