Throughout the past two decades, technological advances have changed the way consumers, vendors, and suppliers conduct business. Traditional methods of business-to-business payments, as well as those payments made to employees, have evolved beyond check writing and extensive accounting measures. More and more businesses are using virtual payments instead, and they’re saving money and manpower when they do.
Today, cashless transactions are becoming the norm for businesses and consumers alike. More than 25 percent of businesses no longer accept cash at all, and market experts predict that by the year 2020, more than half of U.S. consumers will have tried mobile wallets and processing virtual transactions using their cellphones. As individuals and businesses become more accustomed to handling their finances virtually, the expectation for security, speed, and efficiency increases, and businesses and employers are able to meet that demand through the use of virtual payment systems.
Other benefits include:
Receiving payroll via a paper check, then filling out a deposit slip and driving to the bank to deposit your earnings, is becoming a transaction method of the past. Direct deposits are now commonplace as a payroll option, and most people have come to expect this means of payment from their employer. A majority of businesses learned early on that implementing virtual options for employee payroll saved time and money. As a result, they’ve expanded virtual payment methods to include travel, incentives, commissions, and bonus payment services as well. Instead of waiting for a check to be deposited and cleared through a bank and credited to an account, the funds become immediately available for use.
Controlling and reconciling employee travel accounts has been a challenge for businesses for decades. For example, some companies have employed entire departments devoted to keeping up with travel expenses, dealing with receipts and time-consuming reconciliation methods, then issuing paper checks to reimburse employees. Virtual debit cards are an easier, less costly option than other methods such as ACH or paper check payments, and allow for greater control over expenditures and travel costs. Although the use of virtual debit cards is in the early years of development, their use is expected to continue to grow and improve in the years ahead, adding higher levels of security and ease of use. Expense reports could soon be a thing of the past for most businesses.
Virtual prepaid debit cards allow employees immediate use of their earnings. They don’t need a bank account as is required with a traditional bank-issued debit card. Mobile apps offer access to balance inquiries and transaction histories, and there are no fees for cash withdrawals or cash back options following point-of-sale purchases. Employees are required to first enroll in the system, and the company then sends payment through a secure online payment platform that, within minutes, is available to the employee, and are accepted by most businesses that accept traditional credit cards.
Prepaid virtual debit cards are transforming businesses and the way they handle their expenditures. For more than 20 years, there was little change to corporate travel options, for example. But in the last 10 years, virtual and mobile applications have steadily transformed business practices for both employees and the companies they work for. Financial industry specialists say that improved virtual payment technology will significantly decrease card fraud while it continues to evolve and improve in a variety of other ways as well.
For more information on how your company can benefit through the use of virtual debit cards, fill out the MyChoice Preferred online form and one of our helpful agents will be in touch to answer your questions.