This article provides the basic information about single-use virtual cards and contains the following sections:
- What is it?
- Why use a single-use virtual card?
- A single-use virtual card’s characteristics
- How does our single-use virtual card work?
What is it?
A single-use virtual card (SUVC) is a virtual credit card that has become a common delivery method for accounts payable solutions.
Why use a single-use virtual card?
- Fast - Can be processed immediately after the payment is processed.
- Secure - Bank account details are not shared. Also, the card is specific to a single invoice and the exact amount.
- Efficient - Processing is automatic 24/7 and independent of banking working hours.
- Easier to reconcile - Cards are sent with full remittance data - amount, payor, and invoice details.
- Convenient- Process single-use cards with your existing solution. (Standard card processing fees still apply.)
A single-use virtual card's characteristics
J.P. Morgan issues our single-use virtual card. It has some specific characteristics:
- A unique 16-digit digital card number.
- A 3-digit CVV code.
- Each card is issued for a specified amount to pay a single supplier invoice.
- It can only be used once.
- It expires 30 days after the payment is processed.
- No physical card is involved, and no card numbers are stored.
- It can be authorized and settled just like any other card through the existing machine you’re using to process credit card payments.
- It has a known settlement timeframe.
How does our single-use virtual card work?
There are a few ways your vendor can get a single-use virtual card when you are paying them:
- The payor can select this delivery method when making a payment.
- The vendor can choose to receive all their payments via a single-use card.
- We can change the delivery method from an ACH transfer to a single-use virtual card at no extra charge if you've uploaded an invoice with a link to the vendor's online payment portal, where cards are accepted.
In all these cases, the vendor will receive an email with the virtual card details and should process it using a point-of-sale terminal. Learn more about virtual card processing in this article.