What's a Virtual Card and how does it work?
A Virtual Card is a digital payment card that exists only in a digital form, without a physical card associated with it. It is typically used for online transactions and provides an additional layer of security and convenience compared to traditional physical payment cards.
Here's how a virtual card works:
- Issuance: A virtual card is issued by ControlHub when you have subscribed to our Payment feature and our P-Cards Program. The cards are generated automatically only when a submitted Approval Request requiring the use of a virtual card is Approved 👍.
- Card Details: When a virtual card is created, it is assigned a unique card number, expiration date, and CVV code, just like a physical card. These details will be required by your vendors when making online payments.
- Funding: Virtual cards are funded via our P-Cards Program. They must be linked to your company’s bank account, where funds are deducted for each transaction. To learn more, please check our article, How do Card Transactions get repaid?
- Usage: Virtual cards can be used for online purchases just like physical cards. When making an online payment, you enter the virtual card details provided by ControlHub (card number, expiration date, and CVV) on the payment page of the website or app you are using. The payment is then processed using the available funds associated with the virtual card.
- Security: Virtual cards provide an added layer of security for online transactions. Since they are not physically present and have unique card details, the risk of card theft, cloning, or fraudulent activities is reduced. Additionally, ControlHub’s virtual card includes hard spending limits, vendor-specific restrictions, and active time periods.
- Limitations: ControlHub’s virtual cards cannot be used to make money transfers, fund cash accounts, pay another credit card’s balance, or make ATM withdrawals.