The Business Case for Virtual Credit Cards
Written By
Denise Trabucco
Vice President, Commercial Card Sales at Banc of California
Virtual credit cards are gaining traction as a smarter way to manage business payments.
Features such as real-time spending controls and enhanced fraud protection are part of the appeal, and recent data backs up the shift. The global virtual cards market reached $19.02 billion in 2024 and is projected to grow by 21.2% annually through 2030. That kind of growth signals just how quickly companies are embracing this payment method.
As virtual card adoption grows, finance and procurement teams are asking when and how to use them effectively. In this guide, we’ll break down how these cards work and highlight where they deliver the most value, helping you determine how they fit your payment strategy.
What Is a Virtual Credit Card?
A virtual credit card is a digitally generated 16-digit number linked to your existing business credit account. It acts like a traditional card for online and phone purchases but doesn’t exist in physical form. Virtual cards can be added to mobile wallets for convenient use. Many virtual cards are designed for one-time use or can be set with expiration dates and spending limits for added security and control.
Businesses often generate virtual cards instantly through a banking or card management dashboard. This allows for quick assignment and deployment of cards with pre-set limits to:
- Individual employees
- Specific company departments
- Recurring subscriptions or vendor payments
- Approved subsidiaries and franchises
How to Set Up and Use Virtual Credit Cards
Once you’ve chosen a provider that supports virtual cards, the setup process is generally quick and straightforward. Most banks or card issuers offer convenient controls built into your business dashboard. Virtual credit cards are generally provided free of charge as a standard feature of the credit card program.
Following is the typical process once the credit application is approved and implementation, training and onboarding have been completed:
- Create a Virtual Card: Log in to your dashboard and generate a new virtual card for your desired use case, such as a one-time vendor payment or recurring software subscription.
- Set Controls and Limits: Enhance security by applying spending limits, expiration dates and merchant restrictions to each card.
- Monitor Transactions in Real Time: Track spending and manage transactions in real time using a unique card ID linked to each transaction.
- Adapt as Needed: Instantly cancel or update virtual cards in response to team changes, shifting budgets or evolving business needs.
When Should You Use Virtual Cards?
Now that you know how virtual cards work, the next question is, when do virtual cards make sense for your business?
Here are a few common scenarios where virtual cards are especially valuable:
- Simplifying payments to vendors, suppliers, consultants or freelancers, particularly for one-time or international transactions (can be limited).
- Strengthening spending controls across teams, no matter where they’re based, while capturing additional spend, earning rebates, and eliminating check and ACH payments to suppliers to improve cash flow.
- Avoiding surprise charges from subscriptions or recurring payments by assigning cards that automatically expire after a set period or number of uses.
- Improve tracking and allocation of expenses across departments or projects when paired with expense management tools.
- Limit financial exposure on large or first-time transactions by creating cards with spending limits or merchant restrictions.
It’s also worth noting that finance teams often appreciate how virtual cards streamline their daily operations. In addition to helping teams stick to their budgets, virtual cards provide a live view of spending and reduce manual tasks like chasing receipts, reconciling transactions and manually updating spreadsheets. Many dashboards automatically categorize expenses and feed data into reporting tools, saving hours of administrative work each month.
Benefits of Virtual Credit Cards
We’ve already looked at a few key benefits, but how exactly do virtual cards improve how companies manage spending?
Enhanced Fraud Protection
Fraud is on the rise, and traditional payment methods are increasingly vulnerable. In the U.S., nearly two-thirds of credit card holders have reported experiencing fraud, and the country accounts for almost half of all global credit card fraud. Checks remain a weak point, too, making up over 60% of payment fraud cases, even as their usage declines.
Virtual cards offer a targeted solution. Features such as single-use card numbers, spending limits and the ability to mask primary account details make them difficult to exploit. According to Mastercard, virtual cards only account for 9% of fraud cases, a mere fraction compared to traditional payment methods.
Simplified Subscription Management
Managing business subscriptions can quickly get messy, especially when multiple tools and departments are involved. Virtual cards offer a cleaner way to stay in control because you can assign a unique card number to each recurring charge. This makes it easy to see exactly what’s being billed and when.
Track Spending With Greater Precision
Virtual cards give finance teams enhanced control and visibility over company spending. Each card can be assigned to a specific employee or vendor and include key details, such as project names or cost centers, at the time of issue. That context carries through to every transaction, making it easier to track spending in real time and spot any outliers. The result is faster, more accurate reconciliation with far less manual work.
Operational Flexibility
Since virtual cards are issued instantly, there’s no need to wait for physical delivery. Teams can onboard new employees or vendors immediately, giving them fast, secure access to the funds they need. This flexibility supports high-volume transaction workflows and helps avoid administrative delays that slow down operations. Issuance is as quick as generating an email.
Ready to Strengthen Your Business’s Payment Strategy?
Virtual credit cards empower businesses to take control of team and vendor spending without slowing down operations. Custom spending limits, real-time transaction tracking and instant setup make them flexible for managing budgets at scale.
If you’re exploring the best virtual credit cards for managing team spending and vendor payments, we can help you evaluate your options. To find out how virtual cards and other digital payment tools can support your business, explore our business credit card solutions or speak with your Banc of California Relationship Manager.
All credit products are subject to credit approval. Not an offer of credit.
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