Virtual Card Payments: Best Practices for SMEs


Managing cash flow is important to any business. Every client receipt, every payroll run, and every supplier payout is a transaction that must be recorded and paid for when running an SME. It is not surprising, then, that the financial services industry spends significant amounts of money on increasing payment capabilities and technology, as well as improving the value, efficiency, and user experience outcomes that may be unlocked by modernizing corporate payments. However, to realize this value, company operators and owners must be aware of developing payment patterns and be ready to capitalize on the opportunities they bring.


Much has changed in the past few decades when revenues and disbursements were solely handled manually with cash or cheque. These payment options entail unneeded and complicated delays, risks, and frustrations. However, modern payment systems are becoming more available to SMEs to expedite, or de-risk, payments and provide a better experience for all parties involved.


The changes in the payments environment are a direct result of technology enabling new modes of transaction. This "paytech" revolution is advancing, with digitization decreasing the scale necessary to offer customized payments services and providing SMEs with access to capabilities suited to their requirements or previously inaccessible to smaller enterprises.


In other words, these advancements in payware technology have enabled contemporary digital payments to optimize payment speed, efficiency, risk mitigation, and user experience while providing a considerable opportunity for SMEs to increase the efficiency of their operations. However, not all SMEs are at the cutting edge of what is possible with B2B payments. SMEs may unleash hidden value with no effort by embracing these technological advancements, such as using virtual cards for accounts payables.


What Is a Virtual Card in B2B?


Virtual cards are 16-digit credit card numbers that are created at random and can only be used once for a predetermined sum. The term "virtual cards" refers to the fact that they are not tangible items like plastic credit cards. Vendors, on the other hand, treat them similarly to credit card payments so no further disclosure is needed to utilize them.


Virtual cards are often single-use and can only be used once for the approved amount. Some AP automation solutions, however, may produce multi-use virtual cards, which provide better control and security than standard credit cards while satisfying specific vendor demands. For example, for single use payments, this could be paying a supplier that you don't have a relationship with to limit the risk or to pay the monthly taxes. As a multi-use virtual card, this could be monthly subscriptions for SaaS platforms, like Google, Slack, etc.


Virtual card payments are intrinsically more secure than credit card payments or other forms of payment. Virtual card payments are also quicker than traditional payment methods and may be readily integrated into automated payment procedures.

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Payment digitization


SMEs are rapidly realizing the value of implementing digital technology to minimize administrative costs. Payment digitization is an essential component of that narrative. However, the majority of SMEs are at various stages of their digital journey. Some still utilize paper-based payment systems, while others may make payments online but employ inefficient processes that waste money. Businesses are realizing that paper-based payments and manual procedures raise administrative expenses, create irritation to customers and suppliers, and put vital documents at risk.


Digital payments, on the other hand, may significantly boost an SME's profitability and development by providing:

  1. Improved client service 
  2. Cost-cutting measures 
  3. Retention of records
  4. Provide a competitive advantage 

Various best practices contribute to the success of organizations that use virtual cards for payments: 

  • Utilize Available Technology: By automating your AP processes, your firm may save time and money. Some digital solutions that improve efficiency include automatically emailing remittance data, electronically reconciling payments, and real-time payment status visibility.
  • Redeem Monthly Revenue Payments: When you pay with a virtual card, a percentage of the money, that is paid by the Merchant, goes to the transactional bank. Some banks or Fintech providers pass this over to you, and it is usually paid monthly.
  • Work with a Dedicated Enrolment Team: By encouraging additional suppliers to accept card payments as a form of payment, the AP department may increase efficiency and income. To encourage suppliers to participate in accepting card payments, enrolment staff should phone ahead of time and discusses the benefits of accepting card payments. With one of them being that suppliers can get paid more quickly. 


For both sides of B2B transactions, virtual cards simplify and improve the AP procedure. They assist payers to avoid manual procedures and integrate seamlessly with automated systems. This decreases workload as well as expenses, which are boosted further by rebates and early payment reductions. According to recent research, firms that utilize automated AP automation may save up to 75% on expenditures.


Meanwhile, because physical checks are no longer required, merchants receive payments faster and with less paperwork and mistakes on their end. The COVID-19 epidemic has hastened the adoption of digital technology in almost every industry. Many sellers have grown to anticipate these sorts of payment alternatives, as well as the added convenience of being able to process purchases from any internet-connected device.


With virtual cards from Fyorin, your company can easily allocate spending power while still having an efficient way of monitoring and regulating expenses. Fyorin provides digital businesses with virtual cards that are capable of tracking expenses and subscriptions, simplifying reconsolidation, and controlling company spending. By simply opening up a multi-currency account, your business will have access to unlimited virtual cards that can easily be linked to it, giving your company the freedom to use virtual cards anywhere online card payments are accepted.


If you want to find out more about how Fyorin can help your business, please do reach out to us at

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