Why Some Businesses Don’t Like Virtual Cards

While issuing a virtual card, the issuers provide the company with 16-digit card numbers, which they may use on phone or online for applying specific transactions. This provides an extra security cover in contrast to traditional card processing products. No actual plastic card is issued under virtual cards.

Visa is reported to launch a B2B tool soon. This tool will make it much simpler for corporations to pay off supplier invoices using virtual cards. The company expects to launch this new solution with SAP to assist corporations which are looking forward to adopt electronic B2B payments. This solution will easily automate and process the company’s invoice payments without the need to invest in custom software.

Opt-Out Request

Virtual cards are increasingly gaining attention of healthcare providers, who are expressing mixed feelings about the product while settling claims.

Recently, a hospital representative revealed to the Department of Health and Human Services’ National Committee on Vital Health Statistics Subcommittee on Standards that certain health plans are automatically using the virtual credit cards to pay off claims. This has eventually resulted into significant banking charges and administrative work for health care providers.

Speaking for the Hospital Corporation of America (HCA), Doug Downey stated that committee should deject health plans from imposing transactional fees for all electronic payments or requiring hospitals to “opt out” of virtual card payments.

Though HCA is not opposed to the usage of virtual cards as it may be appropriate for some users, but it is against the rules of the network that automatically opt in providers accept such payments.