Virtual Card Payment Solution. The words sound like some futuristic technology out of an H.G. Wells novel; but in reality, the future is now. Service providers all across the United States, from physicians to auto repair shops, are using a virtual payment solution in their workplace.
So, what is a virtual card payment solution? In its simplest form, a virtual card payment is a unique 16-digit number (similar to a credit or debit card) issued for a specific monetary amount for one-time use as a payment. The recipient enters the card number into the point-of-service card terminal along with the corresponding payment amount and the funds are delivered directly to the recipient’s bank account.
Here are five reasons to consider utilizing a virtual card payment solution:
5. Go green!
Virtual payments are an environmentally friendly way to disburse a payment. Delivering payments virtually does not require paper or plastic as do checks and debit cards (all pertinent payment information can be delivered via email or accessed through a secure web portal), so the impact on the environment is minimal. Mother Nature will thank you.
4. Time is Money!
A company’s employees are its most valuable asset; they should be utilized in ways that are cost-effective and boost the bottom line. With electronic payments, the time spent processing payments and writing checks is greatly reduced, allowing workers to focus on more important, more profitable tasks.
3. Lower Overall Expenses
Time is money, and money is money too. How much does your company spend on printers, ink, checks, postage, and envelopes? Did you know that check processing alone can cost as much as $8.00 per check1? That’s a lot of money! And if a check is lost or stolen, then it has to be reissued, doubling the original cost. With virtual payments, you can see a significant increase in savings due to the elimination of check and transaction fees, on top of the overall savings from the peripheral expenses.
2. Greater Peace of Mind
Remitting payment through paper check leaves sensitive banking account information vulnerable to fraud. According to the 2015 AFP Payment Fraud Survey, checks remain the most-often targeted payment method by those committing fraud attacks2. Since virtual payments are initiated from the recipient’s point-of-service terminal and delivered directly to the recipient’s account, the risk of fraud is greatly reduced.
1. Quick Payments = Happy Clients
Let’s talk about the concept of time again. Did you know that it can take a week or longer to process a payment made by check? In comparison, a virtual payment can be processed as soon as the next business day. Quicker payment delivery results in higher client satisfaction, and higher client satisfaction means better business relationships. It’s a win-win situation.
These are just five reasons to consider using a virtual card payment solution. The future is now. What are you waiting for?
DataPath is an end-to-end card and payment processor that offers workers’ comp and provider payment solutions. Learn more about DataPath’s virtual payment solution.