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Virtual Cards

How you can benefit from faster payments using virtual cards

April 17, 2024

With cash flow problems responsible for 82% of business failures in the United States, the need for swift and efficient payment processes is critical. Although you may be using traditional payment methods such as ACH or check, virtual cards have emerged as a fast and more streamlined alternative. In this blog post, we’ll delve into the speed advantages of virtual cards and explore why fast payments matter in the business world.

Virtual cards vs. other forms of payments

When it comes to speed, virtual cards outpace traditional payment methods by a significant margin. In fact, nearly 87% of virtual card payments are posted within 3 business days. Unlike checks or wire transfers that often involve manual processing, virtual cards allow for instant transactions. The unique digital nature of virtual cards eliminates the need for physical handling and mailing, translating to quicker payment cycles.

How can I benefit from faster payments?

  • Negotiate better terms: Fast payments position businesses to negotiate better payment terms with suppliers. When you consistently pay on time, suppliers are more likely to offer you favorable terms. 
  • Build trust with suppliers: Fast payments build trust and strengthen supplier relationships. When you honor your financial commitments promptly, suppliers are more likely to prioritize your orders, offer preferential pricing, and even collaborate more closely on future endeavors. 
  • Streamline cash flow: Fast payments contribute to a healthier cash flow. By settling invoices quickly, businesses can better manage their financial resources, allocate budgets effectively, and navigate unexpected expenses more easily.

Why are virtual cards so fast?

  • Dynamic card numbers: Virtual cards generate dynamic or one-time-use card numbers for each transaction. Unlike traditional credit cards with static numbers, virtual cards enhance security by preventing unauthorized use. Simultaneously, they contribute to the speed of transactions as the system can generate and authorize new card numbers in real-time. 
  • Real-time transaction tracking: Virtual cards offer real-time transaction tracking features. Businesses can monitor payments as they happen, providing instant visibility into the status of transactions.

Integration with financial software: Virtual cards seamlessly integrate with financial software and systems. This streamlines the payment process by automating tasks such as reconciliation, approval workflows, and record-keeping.

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

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