Flexibility without Giving Up Control: Unleashing the Power of Virtual Cards in Software Subscription Management

Grand View Research valued the global virtual card market at $13.31 billion in 2022 and projected a compound annual growth rate of 20.9% until 2030. By offering unparalleled flexibility in managing global fleets, crew expenses, and additional layers of security against fraud, virtual cards are commonly used to streamline financial operations. However, one of the most overlooked applications of virtual cards is the management of business subscriptions. The expansion of a business often brings an increase in the use of apps, software, and tools across departments, most of which are subscription-based. Traditionally software subscription management was done using personal employee cards and reimbursement forms or company cards, but this approach not only poses financial risks but also takes time to control and reconcile. Virtual cards, seamlessly integrated into financial operations, offer flexibility without compromising control and the need for yet another subscription management tool.

With CRM, design, marketing, and other tools, it can be difficult to track who pays for what and when. In addition, it's not uncommon for people to enter their card details for a trial, decide against using the platform, then forget to cancel their payment or get blocked from the platform because their card details expired. As a result, you may incur unnecessary expenses, experience disruptions to business operations or struggle to reconcile expenses across multiple departments. Managing subscriptions can become a major headache from a financial operations perspective.

The virtual card addresses all of those frustrations by streamlining online purchases and reconciliation, giving a clear view of all software-related payments. CFOs and team leaders can create subscription cards for all software spend, specific tools, and teams. With an online platform, those cards can be managed remotely - set a recurring top-up to ensure funds are always available for subscriptions, set restrictions and merchant rules for each card, and businesses gain enhanced budget control and visibility.

It eliminates the need for yet another subscription management software and provides a streamlined way to keep track of software expenses. Virtual cards also eliminate the need for reimbursements and out-of-pocket expenses for your employees, saving time and giving you real-time insight into their spending.

As mentioned, virtual cards not only streamline operations, but also reveal unnecessary software expenditures, optimise budget allocation for better profits, and provide some serious incentives. Scheduled top-ups ensure payments are made on time, which promotes good vendor relationships and, over time, improves your reputation, as well as leads to early payment discounts that enhance your financial standing. A number of virtual card providers offer cashback , which is another way to improve profitability. Lastly, your business will be able to minimise operational costs by spending less time on manual work related to expense reimbursements, aggregating fragmented financial data, and reconciling.

Virtual cards run on major card networks like Visa, Mastercard and Discover, providing universal recognition for subscription vendors and a reliable payment option, minimising the risk of declines. Virtual cards offer some unique security and fraud prevention features. The ability to deny transactions for specific merchants, categories, or amounts makes virtual cards a strong defence against unauthorised purchases. Single-use cards and tokenisation with dynamic CVVs further enhance security, making virtual cards a safe and trustworthy option for online transactions.

For software resellers who manage multiple subscriptions for many clients, virtual cards offer unprecedented budget control, spend management, and efficiency, compared to traditional budgeting and financial transactions. With single-use and multi-use virtual cards, resellers can tailor their approach to meet the unique needs of each client. By setting up an unlimited number of cards with specific rules, resellers can ensure smooth operations for clients and hassle-free reconciliation for their finance departments. They can, for example, create a dedicated subscription card or a full wallet for a client so that all payments are made from the same account, on time, and can be tracked and reconciled easily. Software resellers should look out for these specific features when choosing a virtual card vendor:

Fyorin’s virtual cards offer flexibility, control and convenience needed for an effective and streamlined subscription management. With our solution, Software Resellers and businesses around Europe can manage their software-related expenses and improve their bottom line through:Ready to request your virtual card and turn subscription headaches into savings without needing a dedicated software for subscription management? Get in touch with us at [email protected]