Small and established businesses are increasingly turning to virtual debit cards, thanks to their numerous benefits and features. These cards are virtual and are linked to a business account and work exactly like your debit cards. This means not only can you use these cards in places that accept physical debit cards but you can also use them anywhere in the world without keeping a physical card with you.
When it comes to business virtual debit cards, they come with additional advantages that can make your life easier. They come with features that let you manage your cash flow better, track your spending and work with multiple currencies. Additionally, these cards don’t require monthly maintenance fees or annual fees like credit card companies do with their accounts.
What is an online virtual debit card?
A virtual debit card is a 16-digit number that can be used to make purchases online or over the phone. In order to get a virtual card, you'll need to have a business account. Virtual cards cards can be connected to your Apple Pay or Google Pay for secure, contactless payments. The best thing about them is that your team or employees don't have to worry about overspending or security risks. You set your own limits, add an extra layer of security, issue unique card numbers and you’ll be ready to hit the ground running!
Why your business needs online virtual debit cards.
There are a few key reasons why businesses might prefer online virtual debit cards over high-limit corporate credit cards.
1) It controls overspending: You can set per transaction and daily limits on how much can be spent. For example, you can allow €500 per day to be spent on marketing expenses and no more than €100 on travel. This way your employees won’t go overboard with spending and your business will be safe from unnecessary expenses.
2) They’re more secure: Companies with a large number of employees, vendors or clients are at much higher risk for fraud. These cards come with an extra layer of security made specifically for your business where you can allot each employee, vendor or client their own unique transaction number. Additionally, if a virtual debit card is misused, you can delete it immediately and get a new one issued.
3) Easy transfers: If you have an international business, or even if you just need to make transfers between different accounts, virtual debit cards make it easier than ever. With a few clicks, you can move money from one account to another without having to go through the hassle of setting up a wire transfer.
4) You can get started immediately: Unlike a traditional debit card, which can take weeks to arrive in the mail, a virtual debit card can be issued almost instantly. If you need to make a business purchase urgently, a virtual debit card is the way to go.
5) It's easy to use and enables you to track: A virtual debit card works just like a regular debit card, except that it's used entirely online. You can use it to make purchases or withdraw cash from ATMs, and they come with an in-built feature to track your spending on autopilot.
6) No credit check required: Since a virtual debit card is not connected to a financial account, there's no need to go through a credit check in order to get one. This makes them ideal for businesses that don't want to or can't have a traditional account.
Comparing virtual debit cards
While there are many options for you to get an instant virtual debit card for your business, every bank or financial service provider has its own requirements and terms. You'll want to compare features and benefits in order to find the best one for your business needs. Here are some factors you may want to consider:
- Additional card charges
- ATM withdrawal Fees
- Google Pay and Apple Pay fees
- Card limits
- Currency support
- Security features
Some traditional banks like the Bank of Malta, HSBC Bank, and European Central Bank offer virtual debit cards to their customers. Usually, traditional institutions have more stringent processes and also might take a little longer than usual to issue these cards. So if you are looking for faster options, there are financial services providers like Revolut, wamo, and Wise that focus exclusively on providing businesses with business accounts and virtual debit cards, are faster and cheaper and give numerous additional benefits.
Note that all these companies offer first virtual debit cards for free, but have certain charges if you want to issue additional cards in case you misplace or want to use multiple debit cards. With wamo, you can issue unlimited virtual debit cards without any additional charges. Along with the first card, if you want to issue additional cards, they are free and come with the same features. With wamo, you don’t have to be physically present to get your virtual debit card, you can simply enrol yourself for one regardless of your location and get started in 10 minutes.