Travel payments were a hot topic at the 2016 Association of Corporate Travel Executives Global Conference, Oct. 26-28 in Amsterdam. BCD Vice President of Commercial Payment Solutions Mario Kriebel, who participated in two panel discussions on the topic, gave a recap.
“The sessions were full, which demonstrates the interest in and desire for more information on payment options,” Kriebel said. “We discussed European Union regulation that caps debit and credit card processing fees. But the most pressing topic clearly was virtual cards. They’re needed, and the technology is working. But there are some challenges, as well as opportunities.”
Virtual card opportunities
- Companies can use virtual cards to control direct travel costs because travelers can’t spend above a specified amount.
- Virtual cards are good solution for travelers without a corporate card—such as contractors, job candidates or employees who don’t travel often.
- Fraud risks are reduced because virtual cards can be used only once.
Virtual card challenges
- The cards were developed by card issuers, and they’re used by travel management companies, but hotels weren’t involved from the start. That complicates hotel acceptance and handling, which can lead to negative traveler experiences.
- Having a corporate bank account behind virtual payments can streamline the process, but it also carries the risk that small private expenses might be charged to the cards (for example, a cocktail at the hotel bar).
- Air and ground transportation are mostly uncharted territory for virtual payments, although that’s slowly changing.
Kriebel suggested the pros might outweigh the cons for companies with a lot of travelers without corporate cards; whose travelers frequently visit countries where credit card fraud is high; or for companies that are trying to move away from traditional hotel bill-backs. Virtual cards can also be used for non-travel expenses where security and control are important.
“Travelers on a corporate trip want payment options to work as simply as they do in their personal lives,” Kriebel said. “We’re not quite there yet, but that’s where we are headed.”
Learn more about how virtual payment automation works and download BCD Travel’s whitepaper A Virtual (Payment) Reality. Then ask your account manager for more details.
