7 pros and cons of corporate virtual payments

As more businesses move away from paper checks, virtual payment options are becoming the norm for everyday business transactions. From ACH payments to virtual cards and wire transfers, these digital tools promise greater efficiency, security, and speed. But not every option is perfect for every business.

Here’s a breakdown of seven key pros and cons to consider when evaluating virtual corporate payment methods.

1. Pro: Faster payments mean better cash flow management

Electronic payments are typically faster than traditional methods. ACH and virtual card payments can often settle within a day or two, while wires can be instantaneous (though expensive). This speed gives finance teams better visibility into cash flow and reduces the float time between sending and receiving payments.

2. Con: Not all suppliers are digitally enabled

While virtual payments are gaining traction, some suppliers still prefer checks or lack the infrastructure to accept electronic payments, especially virtual cards. This can create friction in your payment process unless you have a solid supplier enablement strategy in place. Some trusted payment providers, such as WEX, offer supplier enablement support. WEX has a dedicated supplier enablement team and a six-step supplier analysis process that identifies which vendors are a good fit for virtual card payments.

3. Pro: Typically have lower processing costs — and can generate rebates

Compared to the cost of printing, mailing, and reconciling paper checks, many electronic payment options are more cost-effective. According to the Association for Financial Professionals, the average cost of processing a check is around $2  to $4, whereas ACH payments (a type of virtual payment) typically cost around $0.26 to $0.50. Virtual card payments not only offer similar cost savings but can also generate rebates, giving companies a chance to earn money back on their outgoing payments.

4. Con: Varying fees across payment types

Not all virtual payment methods are inexpensive. While wires may be used for a one-time large payment or an international transaction, they are not generally used in corporate payment transactions. No standard exists for sending remittance information that allows efficient reconciliation and posting of an electronic payment once they are received. Wire transfers are considered the highest and can cost anywhere from $15 to $50 per transaction. Credit card processing fees can also eat into supplier margins, making some vendors reluctant to accept them. It’s important to evaluate your needs before choosing a method because factors such as speed, security, and cost, all vary.

5. Pro: Greater security and reduced fraud risk

Virtual payments, especially virtual cards, offer better fraud protection than checks. According to the 2025 AFP Payments Fraud and Control Survey, checks continue to be the most vulnerable payment method, with 63% of respondents experiencing attempted or actual fraud in 2024. On the other hand, only 5% of respondents experienced virtual card fraud. What makes virtual cards special is that they can be set for one-time or limited use, with exact amounts and expiration dates, minimizing the chance of misuse or error. Virtual ACH and wire payments also avoid the risk of lost or stolen paper checks. 

6. Con: Change resistance and system integration

Implementing a new payment solution can be a tough sell initially. Teams may be hesitant to switch from familiar systems, especially if they handle multiple ERPs. But delaying the inevitable need to modernize payments only increases inefficiencies and risks over time. The right AP solution should work with your existing systems (not disrupt them) and be easy for staff to learn and use. Upfront effort pays off in long-term speed, control, and visibility.

7. Pro: Easier reconciliation and reporting

Virtual payments come with detailed data, which simplifies reconciliation and reporting. Virtual card transactions, for example, can include invoice numbers, supplier details, and payment terms, making it easier to track spending and maintain audit trails.

Ultimately, virtual payments offer clear advantages over paper checks, but there’s no one-size-fits-all solution. Each option comes with its own trade-offs in terms of speed, cost, security, and supplier adoption. The key is to find the right mix that aligns with your company’s goals and your suppliers’ preferences.

If you’re thinking about making the switch or expanding your virtual payment toolkit, consider not just the technology, but also the people and processes behind it. The right strategy will help you improve efficiency, reduce risk, and maybe even turn payments into a source of value for your business.

For more insights and updates on corporate payments, check out:

• Your guide to virtual card rebates
• 2025 payment trends
• Accounts payables: Terms you need to know

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The information in this blog post is for educational purposes only. It is not legal, tax or investment advice. For legal, tax or investment advice, you should consult your own legal counsel, tax, and investment advisers.