Among the groundbreaking technological advancements in the fintech sector of Singapore, the concept of temporary credit cards or virtual corporate cards can be considered one of them. They are as legitimate as any physical card and help in online business transactions. They are more secure and reliable in terms of data security than their physical counterparts. A virtual card has a sixteen-digit unique number, which can impact the overall credit score as it provides faster access to credit lines and manages costs.
What is the mechanism of virtual corporate cards?
For business organizations dealing with multiple vendors and performing various funds transactions daily, carrying a physical business card is only sometimes feasible. The concept of temporary cards has been introduced for this purpose only. Any fintech organization or banking institution providing services online can issue a virtual corporate card with a single click and a little information.
Since the administrator chooses the expiration date, the card remains active for as long as the administrator desires. They must furnish details like user name, credit limit, and the department to be allocated. As soon as it is generated in the user’s interface, it is ready to use without further delay in the verification process.
What is the process of acquiring a virtual corporate card?
There is a set protocol for which companies and banking institutions fall under the category of applying and issuing these cards, respectively. In Singapore, a minimum of fifteen employees should be approved to be assigned a corporate card before applying for a corporate card programme.
- The personal credit score of the employee applying for a virtual corporate card has no bearing on the eligibility criteria.
- All the details required to be furnished will be business related, and they need to align with the country’s terms and conditions.
- Specific clauses of terms and conditions may be applied by the issuing organization of these cards, which may appear daunting initially, but they are a lot easier.
How are these temporary corporate cards beneficial for businesses?
1. Expenses are visible and managed well:
All the transactions taking place with these virtual cards are logged in real-time, and these expenditures can be synced with the automated accounting software of the organization. It means the entire infrastructure of transactions becomes transparent, and employees are accustomed to healthier spending choices rather than playing around with the company’s funds.
2. Security is top-notch:
The fear of data theft and hacking to receive the card information swiped at a vendor or ATM has dramatically reduced with the prevalence of virtual cards. Business organizations can perform online funds transactions without compromising their banking information because virtual cards are linked to certain vendors for making or receiving payments without being connected to the company’s bank account.
3. Control of expenses by the business administration:
Handling the virtual corporate card may seem risky for the employees dealing with the company’s funds. However, there is a provision of total control by the administrator because they can alter the usage rules of these cards.
4. A secure payment system empowers employees:
Virtual cards can be allocated to employees depending on budget and department allocated. It simplifies all the domestic and cross-border payments involving the company’s business deals. Since prices are made on a credit basis, there is less risk or liability affected in such types of payments.