All 21 Payment Runs questions
More in Payment Runs
What is a payment proposal (pre-run) and how is it reviewed? How are supplier credits and deductions applied within a payment run? What is the difference between ACH, wire, and check payments in terms of risk and cost? How does a purchasing card (P-card) program change AP payment processing? How are payment holds and blocks managed within the run process? How do payment runs support cash flow and working capital management? What is positive pay and how does it prevent payment fraud? How are cross-border/foreign-currency payments handled in a payment run? How do you reconcile a payment run to the bank and the ledger? How does AP interact with treasury and cash forecasting around payment runs?
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Accounts Payable & Receivable › Payment Runs

What is a virtual card and why do companies use it for payments?

Intermediate

Answer

A virtual card is a single-use or vendor-specific card number generated for a payment, combining card-payment rebates with tight control (fixed amount, one vendor). It reduces fraud exposure versus a physical card, provides rich remittance data, and can extend float, while suppliers must accept card payments (and their fees).
Real-world example AP pays approved invoices with virtual cards to earn rebates and limit each number to the exact invoice amount.

Common follow-ups: How do virtual cards limit fraud? | What's the supplier-side cost?

Vendor Management Payment Runs Credit Control
All 21 Payment Runs questions