Virtual cards can help change the way business travelers pay for trips – but anyone new to this payment type is bound to have a few questions. We help break down the basics with a new video and resources in our Principles of Payment library. Get answers to the most common questions about how they work, why they should be part of your payment mix, and how to convince travelers they’ll love them.
What are virtual cards?
A virtual card is a digital payment method tied to a specific transaction, trip, or traveler. Unlike traditional corporate credit cards, virtual cards don’t have a physical form. Instead, they exist electronically and are typically issued for a set amount, date range, and purpose – like paying for a hotel stay or airfare.
Why should travelers use virtual cards for business trips?
Virtual cards simplify payments, improve security, and streamline expense tracking. Here’s why more travel programs are making the switch:
- Fraud prevention – Each virtual card is unique and can only be used for its assigned transaction, reducing the risk of unauthorized charges.
- Better control – Travel managers can set limits on how much can be spent, where, and for what purpose—helping prevent out-of-policy expenses.
- Simplified reconciliation – Because virtual cards are linked to specific bookings, they make it easier to match payments with expenses, reducing manual work for finance teams.
- No out-of-pocket costs – Travelers don’t have to use their personal cards and wait for reimbursement.
3 ways to get suppliers and business travelers to accept virtual cards
Not all travel suppliers accept virtual cards automatically, but with the right approach, you can maximize acceptance and create a seamless experience for travelers. Here’s how:
- Integrate virtual cards in your booking tools. Work with your travel management company (TMC) to enable virtual card options in online booking tools (OBTs) and offline reservations. The more seamless the process, the higher the adoption rate.
- Communicate with travelers and suppliers. Clear communication is key. Make sure travelers understand how virtual cards work and what to expect at check-in. Similarly, inform suppliers – especially hotels – so they’re prepared to process virtual card payments correctly.
- Have a backup plan. Since virtual card acceptance depends on the supplier, it’s essential to establish a backup payment plan. Should travelers call the hotel ahead of check-in? Should they carry a physical corporate card as a fallback? Define your process to avoid disruptions.
5 reasons business travelers may think they hate virtual cards – but really don’t
Virtual cards can get a bad rap. Ask business travelers about them, and you might hear frustration about declined payments or confusing processes. But here’s the thing: Most of that is just misinformation. Business travelers don’t dislike virtual cards; they just don’t know how much they should appreciate them.
1. “Hotels never accept them.”
This used to be a challenge, but times have changed. Many hotel chains now recognize and prefer virtual cards because they reduce fraud and simplify payments. A well-managed program ensures hotels receive clear payment instructions, making check-ins smoother.
2. “I never have access to the card details.”
Unlike physical cards, virtual cards are designed to work behind the scenes. But that doesn’t mean business travelers are left in the dark. Many travel apps and expense tools now display virtual card details securely, so they can be accessed as needed – without the risk of losing a physical card.
3. “They’re a hassle when plans change.”
Actually, virtual cards offer more flexibility than traditional corporate cards. Travel managers can adjust spending limits, avoiding the delays of waiting for a replacement card to arrive.
4. “Expense reports are still a pain.”
Not anymore. Virtual card transactions are automatically matched with trip data, reducing the need for manual receipt uploads and making reimbursement faster and easier.
5. “Using virtual cards means losing personal rewards.”
While personal cards may offer perks like miles or cashback, virtual cards eliminate out-of-pocket expenses and waiting for reimbursement. Plus, many companies reinvest savings from virtual card programs into traveler benefits, so they still win in the long run.
Getting started with virtual cards
A successful virtual card program requires thoughtful planning. Here are a few things to consider:
- Technology integrations – Ensure your banking partner, TMC, and booking tools support virtual cards. Work with finance to determine what data needs to be mapped for tracking and reconciliation.
- Policy updates – Define how virtual cards fit into your travel policy. Will travelers still need to submit expenses? What types of charges will be allowed?
- Deployment strategy – Decide whether to roll out virtual cards in phases, such as for non-employee travel first, or launch them company-wide from the start.
Interested in learning more? Check out the Principles of Payment series for an introduction video and one-pagers on:
- Acceptance tools & tips
- Considerations & dependencies
BCD clients also can contact their Program Managers for support. Not a client? Get in touch with our team.
