For any business, efficiency and control over expenses are crucial for success. And for small businesses and sole traders, that’s doubly true.
That’s why we’ve created this guide to virtual debit cards - a powerful tool that might just revolutionize how you manage your team’s spending.
What are virtual cards?
Before we get into the benefits of virtual cards, and how to best use them, let’s break down what virtual cards actually are.
Virtual cards are digital payment cards that exist only in electronic form. Unlike traditional plastic cards, virtual cards can be instantly generated and immediately used for online purchases, subscriptions and even some in-person transactions.
They’re exactly like having a normal credit or debit card, but you needn’t wait for the mailman to start spending!
Why virtual cards are a game-changer
Now that we know what virtual cards are, let’s explore why these digital tools are a game-changer for small businesses.
Enhanced security
One of the primary benefits of a virtual card is the increased security it offers.
Virtual cards can be easily limited by the card holder. That means you can tailor the usage of a virtual card by project, teammate, and sometimes even by vendor or transaction type.
Limiting your virtual cards in this way renders them entirely useless in the unlikely event of compromization. This added layer of financial security helps protect your hard-earned money from fraud and unauthorized spending.
Real-time spend control
With virtual cards, you get full control over your team’s expenses, right at your fingertips.
Easily set spending limits, restrict usage as necessary and even instantly create single-use cards. This close control helps you to keep your budget in check while giving your team the freedom they need to make business-appropriate purchases.
Streamlined expenses
Say goodbye to the hassle of manual expense reports. Most virtual cards automatically categorize and record all your transactions, making accounts reconciliation a breeze.
This not only saves your team time, but also gives you real-time visibility into your company’s daily spending patterns - perfect for making strategic decisions.
How virtual cards empower your team
Let’s talk now about how virtual cards can make your team’s life easier, send productivity through the roof and simplify everyday operations.
Increased autonomy
Giving your team access to their own virtual cards means they can make purchases without having to wait for approval.
This autonomy significantly boosts the productivity of your staff, streamlines your management process and ups job satisfaction across your entire team. After all, who doesn’t appreciate a bit of freedom in their work?
Simplified procurement
For teams that make a lot of online purchases, or if you’re subscribed to a lot of digital services, virtual cards make payment simple.
No more sharing sensitive company credit card details or waiting around for purchase approvals. You can generate a virtual card instantly, authorize your team, and they can make payments as needed.
Reduced risk
With the capacity to set precise spending limits, manage a card’s expiration date, and sometimes even restrict the transaction type for a card, you can give your team the freedom to make purchases without worrying about them overspending or misusing the money in your accounts.
This not only reduces the risk factor of company cards, but helps you to build up a culture of trust and responsibility in your organization while maintaining oversight.
How to implement virtual cards in your business
Ready to see how virtual cards can enhance your business’s operations? Here’s a quick step-by-step guide to help you get started.
Step 1: Choose the right provider
First thing’s first - you need to pick a business account provider that suits your needs.
Look for a solution that offers robust, flexible features, easy integration with your existing systems, and top-notch customer support.
At wamo, for example, we’ve designed our virtual card solutions to specifically meet the needs of small business owners and sole traders, building flexibility into every part of our business accounts.
Step 2: Set clear policies
Once you’ve chosen your provider, you need to roll out virtual card usage across your team. Before you start dishing out that spending power, though, it’s crucial to establish clear guidelines that everybody can follow.
Define spending limits, create your list of approved vendors, and outline a procedure for requesting and using virtual cards. By taking the time to set these parameters beforehand, everyone will know exactly what’s expected of them. That’ll help keep spending controlled, and make sure everyone’s responsible for their own cards.
Step 3: Train your team
Make sure your team knows how to use virtual cards effectively from day one.
Provide training for your management team on how to generate cards, and training for everyone on making purchases and submitting expense reports. Tools like Loom are a great, low-effort way to create video tutorials your whole team can refer to, which is particularly useful if your staff is spread over multiple timezones.
Step 4: Monitor and adjust
Moving forwards, keep an eye on how your team use virtual cards and make adjustments to limits, policies and guidance as needed.
Regular reviews will help you to maximize the benefits of this powerful tool for your business.
The future of business spending
Virtual cards aren’t just a trend - they’re shaping the future of business spending. They offer control, security and efficiency that traditional payment methods simply can’t match.
For SME owners and sole traders, the benefits are clear:
- Reduced fraud risk
- Better control over expenses
- Simplified financial management
- Empowered team
- Multi-currency payment power
Empowering your team with virtual cards is more than just smart finance; it’s you creating an environment where everyone can thrive. By providing the tools your team needs to operate efficiently, you’re setting up your business for growth and success.
At wamo, we’re dedicated to helping SMEs and solopreneurs navigate the new age of digital finance easily. Our virtual card solution is just one way we’re making banking simpler for you, working in harmony with other wamo benefits like wamo Connect, wamo multi-currency accounts, and wamo Exchange.
So, are you ready to take charge of your business spending? Visit wamo.io today to learn more and kick-start your journey towards smarter business spending!