NCET helps you explore business and technology
By Jodi Jung
Corporations are searching for ways to protect their financial records, and virtual payments offer an easy solution. Virtual payment discussions are coming up in nearly every meeting, due to customer concerns. We discuss how they can implement a virtual card within their travel program to protect against security threats. With a virtual payment program, you get a unique credit card number with every reservation, making the transaction more secure.
Technology in the past hasn’t been able to take the reservation from a booked record to the hotel front desk. When there’s no physical card to produce and a fax isn’t a solution, you have to rely on your travel partner or administrator to clear up issues, while your traveler is checking in!
That’s where virtual payment services come in; they provide virtual transactions that allow companies to pay hotels anywhere before their employee walks into the lobby. Conferma’s virtual cards, for example, are accepted anywhere a plastic card is accepted and in any currency. Conferma payments are accepted by travel suppliers in 197 countries and are held within a reservation from beginning to end.
Using a virtual payment takes the payment responsibility from the employee and moves it to the company. It changes the repayment route from an employee reimbursement to a pre-budgeted credit that is pre-paid by the company. Reconciliation and payment stays within the company’s finance department and doesn’t involve an individual’s card.
Some companies require their employees to put their travel expenses on a personal credit card. Due to the high costs of airfare, car and hotel nights, they may be faced with an inadequate credit line and max out their credit card – then they really have a problem! Employees with bad credit or large balances wouldn’t be able to provide a personal credit card to use for a business trip. Virtual cards are seen as an up-and-coming product to address these issues.
The value of single-use payments for businesses ranging in size from small to large is the same – secure and trackable payments. Each transaction has a unique payment number making it easy for accounting to reconcile the expense. And because a VPAY number can only be used once, virtual payments offer better security. With virtual credit cards, spending limits are set to the exact amount of the trip as allocated by a travel management company or organization. This constraint limits the potential for abuse because the spending limit is low and it must be for that supplier and that traveler.
We have clients who are looking for a simple ways to reconcile their travel spend. The reconciliation of those expenses is simple with virtual payments because you don’t have one card for multiple transactions. It’s one to one per transaction.
Jodi Jung is NCET’s VP of Membership Retention. NCET is a member-supported non-profit that produces networking events to help individuals and businesses explore and use technology.