What are Virtual Accounts?
Virtual Accounts are digital accounts with 16-digit numbers, created for one-time or multi payment use.
How it works is that virtual accounts can be sent to your payee via email, and processed just like any other forms of payment.
In our digital first age, virtual accounts are fast becoming a popular alternative to mailing checks or paying invoices over the phone. In a nutshell, every time you need to make a payment, you issue a ‘virtual account’ with a set amount, which you can then email to your payee. Alternatively, you can issue the virtual account to your employees, who can then input the account number upon checkout. Once processed, you can set the virtual account to expire and the number disappears.
Benefits of Virtual Accounts
- More secure – virtual accounts are more secure than physical credit cards, which are exposed to risks of fraud and theft. Virtual account numbers are randomly generated and can be set to expire once payment goes through. This means that the number is never used again, so it’s very secure.
- Makes it easier to pay vendors and customers – helps the company’s accounts payable team by streamlining payments, to the benefit of both the company, its vendors and customers. Virtual accounts are issued instantly and digitally, which is much more convenient than having staff print, sign and mail checks manually. An easier payment process allows vendors to be paid on time, and thus improving their cash flow. The same applies for companies issuing cashbacks to their customers, which allows them to access the funds quickly and spend it securely online on the company’s e-commerce site or another website.
- Saves money for the company – by streamlining manual processes, virtual accounts have proven to reduce invoice processing costs. There is also no need to produce physical cards or checks, which can rack up thousands of dollars for the business.
- Company’s Accounts Payable team looking to reduce time spent on processing invoices manually. It is especially valuable with companies that regularly process a lot of payments.
- Employees looking to make purchases outside of traditional invoices. Rather than using a company credit card or filling out a purchasing form, employees can make a request to the purchasing manager, who can then issue a virtual account to them with the approved amount.
- Retailers looking to implement a faster, more secure and low cost cashback program. This also allows customers to shop securely online without the risk of fraud and having to provide additional personal details.
Interested in a virtual account solution?
As a Visa Partner, we offer one-time and multi-use virtual account solutions for companies looking to improve their streamline their payment process .