The statistics are alarming. Nearly two-thirds of organizations were a target of payments fraud last year, according to a survey by the Association of Financial Professionals. The same survey found that one-third of companies experienced fraud via their commercial card accounts. Traditional payment methods (i.e., corporate credit cards and business travel accounts) have benefits, but they also introduce risk into your travel program—especially for infrequent travelers. Virtual payment automation offers solutions to this problem, but is it right for your travel program?
A new white paper from BCD Travel’s Research & Intelligence division, A Virtual (Payment) Reality, explains how virtual payment automation works and which companies can benefit from it. At the center of the virtual payment solution is a virtual credit card that works like a plastic card but is designed for travelers who don’t have corporate cards. Virtual cards are an ideal way to handle travel bookings and expenses for contractors, job applicants and employees who don’t spend much time on the road.
Virtual credit cards work on MasterCard, Visa and American Express platforms, among others. They can be used almost anywhere a plastic card is accepted and in any currency. BCD Travel’s virtual payment solution—powered by Conferma—is accepted in 185 countries. A virtual payment strategy that includes virtual cards can benefit your corporate travel program by:
Reducing the risk of fraud: A virtual credit card is only valid for a short period of time. It has a limited spending allowance and can only be used with certain merchants. These features greatly curtail opportunities for fraudsters.
Strengthening compliance: Virtual credit cards allow you to set traveler spending limits and supplier restrictions, among other parameters. This increases the likelihood that your travelers will stay in compliance.
Enriching travel data: A secondary—but very valuable—upside is the wealth of travel data that can be captured using virtual credit cards. Each has a unique ID that directly tracks to what your traveler is spending, and with whom. And you gain this data easily, without the need to reverse engineer expense reimbursements.
A Virtual (Payment) Reality details these benefits and explores other pros, cons and considerations of adopting a virtual payment strategy for corporate travel.
Download the white paper to learn more. And ask your account manager to help you determine if your travel program is virtual payment-ready.