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5 reasons why business owners should use virtual cards
Expense Management

5 reasons why business owners should use virtual cards

15 min read

If your company values security and spend control, or even if you just make a lot of online purchases, you can benefit from virtual cards

Companies like Divvy offer virtual cards for businesses to use for subscriptions, vendors, and any situation where a single- or limited-use card number makes sense.


  • Virtual cards for business are a payment method that helps increase security and prevent fraud. 
  • They also create greater control and transparency in business expenses. 
  • With Divvy, any employee who spends can create, manage, and use virtual cards. 

The impact of virtual cards

Virtual cards are digitally generated card numbers tied to existing business accounts that can be used without exposing the original account data. Virtual cards work in many of the same ways that physical cards do—they are tied to the same accounts—so they are useful in a number of different cases. 

Learn more about how virtual cards work, and find out the five biggest reasons why every business owner needs them. 

1. Improve fraud protection

The more people who have access to a single card, the greater the risk for fraud. This includes employees, vendors, and even subscription services. Creating a different virtual card for individual uses or for each specific vendor allows you to track spending accurately and spot fraudulent transactions sooner. 

You can even use virtual cards as single-use cards in any situations where you think fraud is more likely to occur. This includes situations where you think the card number might change hands several times before the transaction is completed. 

Virtual cards are also more convenient when fraud actually occurs. In the world of physical cards, reports of fraud often mean waiting several days for a new card to arrive before you can begin spending again. But if one of your virtual corporate cards is compromised, you can quickly freeze or delete that card and continue spending from your other cards from the same account as usual. Your spending—and your day-to-day business activities—can continue uninterrupted. 

Divvy is big on security, and fraud protection is no exception. When you manage all spending and virtual cards from a single location, you can rest easy knowing that your accounts are protected. 

2. Gain visibility into employee spending

Virtual cards can be easily generated on demand, which means different spenders can have different numbers associated with their spending. This helps minimize the damage caused by business spending fraud. 

You’ll be able to see exactly where and how much each individual employee is spending, so it’s easier than ever to stick to spending limits. This prevents misuse of company funds, and allows you to quickly and easily identify fraudulent employee spending. 

When every purchase is tied to a virtual card number and every card number is tied to an employee, spending is transparent and easy to track. 

With Divvy, you can see all of your company spending in one place, including virtual cards. The software even automatically generates expense reports, so you have one less thing to worry about.  

3. Increase control

When employees need to make purchases, nimble, efficient companies make sure they can do so quickly and easily. With virtual cards, spenders can quickly create, freeze, or manage cards and spending.  

When combined with AP (accounts payable) automation, virtual cards allow for predictable, secure transactions that will allow your financial team to rest easier at night. 

The Divvy app makes it easy to control every aspect of your virtual cards right from your phone. Or you can also use the desktop version if you prefer. Either way, all virtual card spending is visible and manageable. 

4. Manage vendor payments and subscriptions

Companies that deal with many outside vendors often have to make a great deal of payments, and may even have to share corporate card numbers through unsecure channels such as email. 

If necessary, you can give out vendor-specific virtual card numbers to your employees so you can make sure the number is only used exactly where it’s supposed to be used. With virtual card payments, you also have the flexibility to create as many unique virtual cards for vendors as you need. 

Learn how individual Divvy cards for each vendor can make an impact on overall financial control. 

If you don’t like the idea of handing over a card to vendors who might charge beyond the scope of your agreement, you can always give them a virtual card with a built-in spending limit. With Divvy budgets, you won’t have to worry about being overcharged. 

5. Easily monitor ad spend

Digital marketing requires a lot of individual expenses. You might have to make multiple card transactions a month to make sure your ads on Google, Facebook, YouTube and more are all up and running. Virtual card payments make it easier to track this ad spending. 

You can set up different virtual cards for each ad site and manage spending right from the Divvy app. Then you’ll be able to view all card transactions, including recurring payments, in a central location. 

It’s easy to spend with virtual cards—and with Divvy, it’s completely free. Schedule a demo today to learn how controlled spending with both virtual and physical cards can impact your business. 

The information provided on this page does not, and is not intended to constitute legal or financial advice and is for general informational purposes only. The content is provided “as-is”; no representations are made that the content is error free.

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