88% of financial decision-makers say their company still struggles with payment operations, according to Modern Treasury’s State of Payments Operations 2025 report, yet many AP teams stick with the same outdated processes simply because they work “well enough.”

In accounts payable, sticking with what’s familiar often feels safer than changing course. If your current supplier payment process works, why shake things up?

But in many businesses, that status quo, like manual check runs, routine ACH transfers, hours spent reconciling payments, is quietly draining time and resources. It can also keep your finance team from getting the visibility, control, and efficiency it needs to operate at its best.

Virtual cards offer a smarter, more modern way to manage supplier payments. And once you see how they work, the switch makes a lot more sense.

What are virtual cards?

Virtual cards are single-use, digitally generated card numbers issued for specific payments. You can think of them as secure, one-time credit cards that work just like any other card transaction but with more control and flexibility on the backend.

Instead of mailing a check or initiating an ACH transfer, you issue a virtual card to a supplier. They process it like a regular card payment and receive funds quickly. Your AP team gets transaction data and automated reconciliation. You even get rebates on spend.

4 Reasons why businesses are moving to virtual cards

More companies are adopting virtual cards because they solve real operational challenges. Here are a few of the biggest benefits:

1.  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.

2. Stronger payment security

Virtual cards are built with security in mind. Each card number is tied to a specific transaction, dollar amount, and supplier making it much harder to use fraudulently.

This reduces common risks associated with checks (like stolen mail or forged signatures) and static card numbers (which can be compromised and reused). And since these cards are digital, there’s no need to worry about loss or theft.

If your finance team is trying to tighten controls or reduce fraud risk, virtual cards offer a straightforward, effective solution.

3. 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.

4. Faster, more reliable payments

Virtual card payments are typically processed faster than checks and even many ACH transfers. Suppliers receive funds quickly, which can improve your standing as a reliable partner.

This is especially valuable when managing a large or diverse supplier base. Reliable payments and accurate remittance data make your AP process easier to navigate—for both you and your vendors.

Enabling suppliers to accept virtual cards

It’s natural to wonder how many of your suppliers are set up to accept virtual cards. The good news: many already are. And for those who aren’t, the right payment partner can help you identify the best candidates and manage outreach.

This process, called supplier enablement, is designed to take the lift off your team. At WEX, for example, we work with each client to best understand how they want to approach suppliers so all sides get the best result. And we’ll support supplier enablement for buying relationships of all sizes.

A smarter approach to supplier payments

At the end of the day, virtual cards don’t just replace older payment methods. They improve the way your finance team works and how you engage with suppliers. By digitizing and simplifying key parts of the payment process, you can:

• Save time and reduce manual tasks
• Improve accuracy and reporting
• Minimize fraud and security risks
• Build better supplier relationships

If your current process still relies heavily on checks or manual ACH payments, it might be time to ask: what is the status quo really costing us?

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

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.