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.
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.