The benefits of virtual Mastercards for businesses

Virtual Mastercards offer the highest level of security and almost all the advantages as physical cards. In addition, they enable companies to make online payments in all currencies – without intransparent and expensive exchange rates or further costs that are often added by traditional banks. We have listed all the advantages of a virtual debit card in the following guide.

What are virtual Mastercards?

A virtual debit card works in exactly the same way as its physical counterpart. Virtual Mastercards are linked to the Mastercard payment network and have the cardholder’s name, a 16-digit card number, a CVC number and an expiry date. Thus, virtual Mastercards can be used for online purchases just like physical cards.

However, an international virtual debit card offers more advantages: if cardholders carry out transactions in foreign currencies, expensive mark-ups of 1.5% to 2.5%, which are often charged by traditional banks, are eliminated. In addition, banks generally only offer virtual cards that are denominated in the reference currency. An international virtual debit card (multi-currency debit card), on the other hand, allows companies to hold other foreign currencies in addition to the local currency. Thus, businesses can avoid expensive exchange rates and surcharges plus minimize the exchange rate risk.

Who is a virtual debit card suitable for?

Virtual debit cards are the fastest way to get a better control over your company’s expenses and save money on online payments. Depending on the provider, virtual Mastercards can be created in real-time for the entire staff and used on the very first day. This makes it possible to shop on suppliers’ websites abroad or on online marketplaces, pay for online and marketing tools or book business trips – all without costly mark-ups. Especially when using the virtual card for subscriptions, payment processes can be streamlined and the efficiency of financial management can be enhanced.

Virtual Mastercards offer a practical solution for businesses seeking to evade costly transaction fees and surcharges imposed by traditional banks. These cards are particularly advantageous for small companies engaged in international transactions. Moreover, they prove to be invaluable for large corporations with dedicated purchasing departments, for example, as they facilitate cost-efficient and transparent processes. Financial flexibility can be provided to employees, while managers receive maximum transparency and oversight.

Virtual debit card – advantages and disadvantages

Virtual Mastercards offer a whole range of advantages that even traditional bank cards cannot deliver. First of all, depending on the provider, it is possible to receive and store various currencies within the associated account, allowing seamless payments in foreign currencies.

This has the advantage that companies can completely avoid expensive exchange rates and mark-ups if they hold the foreign currency. In addition, exchange fees and markups charged by banks are far higher than those charged by other virtual debit card providers.

Through Mastercard payment service providers, virtual cards offer a comprehensive range of online functionalities akin to traditional debit or credit cards. Security is also guaranteed: Companies can create administrator and user accounts with customizable spending limits, effectively avoiding unplanned expenses, and temporarily suspend the card when not in use. Moreover, the virtual nature of the card eliminates the risk of loss or theft from a physical wallet.

New virtual Mastercards can be issued online in real-time – usually at a lower price, as there is no cost related to physical plastic and shipping, unlike for physical cards. As a result, it is common practice to create separate virtual debit cards for individual departments and projects.

However, virtual debit cards have certain limitations, such as their ineligibility for use at ATMs, and the requirement to ensure sufficient funds are available to process payments.

Pros

• Security through Mastercard payment service provider
• Prepaid: In case of misuse, the loss is limited to the available account balance
• Instant online activation and use
• Same online functionalites as traditional debit or credit cards
• All currencies available
• Depending on the provider, favourable exchange rates without extra charges or no margin if the card is covered with the foreign currency
• Companies can provide employees with individual cards and different spending limits

Cons

• No access to ATMs
• Prepaid: the account must be covered (either in reference or foreign currency)

The best of both: amnis merges virtual and physical debit card advantages

amnis combines all the advantages of a physical and virtual debit card. With amnis, it is possible to order more than 500 virtual and physical business debit cards for the entire company. Administrator and user rights, limits, export and import functions for simplified accounting and expense management, fast suspension and reactivation of cards and a clear dashboard ensure security and transparency. Learn now how to get a business debit card to streamline financial operations further, providing immediate access to funds and simplifying the process of tracking business expenses.

Moreover, amnis’ virtual Mastercards prove to be significantly more cost-effective than conventional bank cards. Whether or not you have the required currency, you can make real-time payments in any foreign currency with complete transparency on all fees right from the beginning, ensuring no unpleasant surprises from surcharges.

With the amnis debit card, companies not only benefit from cost savings while shopping online but also enjoy the convenience of accessing cash or making payments conveniently with the card during business trips. This makes amnis also a great alternative to fuel cards for business. Thanks to Mastercard, the card allows withdrawals from almost any ATM, ensuring you never run out of cash on the go.

Your free demo account with amnis

amnis is dedicated to revolutionizing international payments through cost-effective and transparent pricing. Say goodbye to expensive and time-consuming foreign transfers with SWIFT – they are now a thing of the past. amnis makes it possible to benefit from low-cost local payment networks such as SEPA or ACH, regardless of where your company is located. Create a free demo account with amnis now to get to know all the advantages!