Audience: Neo1 Admin | Primary Card Holder Purpose
The goal is to provide understanding of virtual Cards and how they function.
Virtual Cards in Neo1 offer a better way to seamlessly integrate spend management, purchases, and travel for greater efficiency and transparency. Businesses can better manage spend and reconcile expenses by issuing virtual Cards to employees.
Overview
What are virtual Cards?
Virtual Cards, also known as digital or virtual payment Cards, are a modern payment solution that exists only in a digital format. They are not physical cards like your traditional credit or debit card.
How do virtual Cards work?
Virtual Cards work by generating a unique set of card details, including a card number, expiration date, and security code, typically for a single transaction or for a limited time.
How do virtual Cards differ from physical cards?
| How They Differ | Virtual Card | physical card |
| Form: | Digital - typically as card numbers, expiration dates, and security codes. | Tangible, plastic cards - issued by banks or financial institutions. |
| Security: | Employees receive a virtual unique number not the actual card or account number to make payments to supplier online, as well as deposit into their digital wallet for contactless payment. | Require additional security measures. |
| Issuance Time: | Generated instantly, making them ideal for last-minute transactions. | Typically require mailing and activation, which can take days or even weeks. |
| Expense Control: | Allow businesses to set spend limits and controls and monitor spending in real-time for greater control. | Often have standard credit limits set by the issuing bank. |
| Environmental Impact: | Contribute to a more sustainable approach by reducing the need for plastic cards. | Contribute to plastic waste and require card production and distribution. |
Next Steps: Now that you understand virtual Cards. Let's walk through common use cases for virtual Cards.