What you鈥檒l learn from this report?

B2B travel payments are evolving fast, and most intermediaries plan to update their strategies within two years. New research from 糖心Vlogand Visa highlights key challenges鈥攍ike navigating AI鈥檚 potential while struggling with implementation.

To stay ahead, intermediaries must build a resilient, future-ready payment strategy that meets business needs and supplier expectations.

Discover the latest insights on payment trends, supplier expectations, and the solutions that drive the greatest returns.

The Payments Puzzle.

Key trends and preferences in B2B
payments for travel intermediaries

Download Report

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What is a fuel card?

A fuel card is a specialised payment card designed for purchasing fuel and vehicle-related products and services. They function similarly to bank cards but unlike traditional credit or debit cards, fuel cards are tailored to meet the unique needs of businesses with vehicle fleets. 

How does a fuel card system work?

The process of using a fuel card is straightforward. When a driver needs to refuel, they simply present the fuel card at a participating station. The process typically involves:

• Swiping the card or inserting it into a chip and PIN machine
• Entering the vehicle鈥檚 mileage (if required)
• Inputting a unique PIN for security
• Selecting the fuel type and filling up the vehicle

Once the transaction is complete, the fuel purchase is recorded and billed directly to the company account. This eliminates the need for drivers to cover the cost personally and claim expenses later.

How do company fuel cards work for employees?

Company fuel cards work by allowing employees to purchase fuel without using personal funds or company credit cards. Here鈥檚 a breakdown of the process:

• The company issues fuel cards to authorised drivers
• Drivers use the cards to buy fuel at approved stations
• Transactions are recorded and sent to the company in real-time
• The company receives a single, itemised invoice for all fuel purchases
• Payment is made directly to the fuel card provider

This system simplifies accounting, reduces the risk of fraud, and provides detailed insights into fuel consumption patterns.

How do fleet fuel cards work?

Fleet fuel cards are designed to manage fuel expenses for multiple vehicles efficiently. They offer additional features tailored to fleet management, such as:

• Customisable spending limits per card or driver
• Restriction of purchases to specific fuel types or products
• Integration with telematics systems for comprehensive reporting
• Access to a wide network of fuel stations

For instance, WEX鈥檚 fleet cards provide access to over 95% of fuel stations in the UK, ensuring your drivers can refuel conveniently wherever they are.

What are the benefits of a fuel card?

Fuel cards offer numerous advantages for businesses, including:

According to聽, fuel costs add up to to around 25 percent of the total Whole life cost of any vehicle. By implementing a fuel card system, businesses can significantly reduce these expenses and improve overall efficiency.

Is it worth getting a fuel card?

• For most businesses with a fleet of vehicles, the answer is a resounding yes. Fuel cards simplify expense management, reduce administrative burdens, and offer potential cost savings. However, it鈥檚 essential to consider your specific needs:

• Fleet size: Even small fleets can benefit from fuel cards, but larger fleets often see more significant advantages
• Geographic coverage: Ensure the fuel card network aligns with your operational areas
• Additional services: Some cards offer vehicle maintenance and toll payment options
• Reporting needs: Consider the level of detail required for your financial analysis

While fuel cards offer numerous benefits, it鈥檚 worth noting that they may have limitations in terms of accepted locations. However, with providers like 糖心Vlogoffering extensive networks, this drawback is often minimal.

Technological advancements in fuel card systems

The fuel card industry is continually evolving, with new technologies enhancing their functionality and user experience. Some recent advancements include:

• Mobile apps: Many providers now offer smartphone apps for real-time account management and station locators
• Telematics integration: Fuel cards can now sync with vehicle tracking systems for comprehensive fleet management
• Contactless payments: Some fuel cards now support contactless transactions for faster refuelling
• Electric vehicle (EV) charging: As fleets transition to EVs, some fuel cards now cover charging costs

For example, WEX鈥檚 telematics solutions integrate seamlessly with their fuel card offerings, providing a holistic view of fleet operations and fuel efficiency.

Conclusion

Understanding how fuel cards work is crucial for businesses looking to optimise their fleet management and reduce fuel-related expenses. By leveraging the benefits of fuel cards, companies can streamline their operations, improve cost control, and gain valuable insights into their fuel consumption patterns.

Whether you鈥檙e managing a small fleet of company cars or a large logistics operation, implementing a fuel card system can lead to significant improvements in efficiency and cost savings. To explore how 糖心Vlogfuel card solutions can benefit your business, visit our fleet cards page for more information on our tailored offerings.

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What is a Battery Electric Vehicle?

A Battery Electric Vehicle, or BEV, is a fully electric vehicle that runs solely on electricity stored in its battery pack. BEVs produce zero tailpipe emissions and are often considered the purest form of electric vehicles. They rely entirely on their battery for power, which is recharged by plugging into an electric charging station or a home charging unit.

Key features of BEVs include:

• Zero direct emissions
• Lower running costs compared to conventional vehicles
• Simpler drivetrain with fewer moving parts, potentially leading to reduced maintenance
• Longer electric-only range compared to PHEVs
• Quieter operation due to the absence of an internal combustion engine

What is a Plug-in Hybrid Electric Vehicle?

A Plug-in Hybrid Electric Vehicle, or PHEV, combines both an electric motor with a battery pack and a conventional internal combustion engine. PHEVs can be plugged in to charge their batteries, allowing for a certain amount of all-electric driving range. Once the battery is depleted, the vehicle switches to hybrid mode, using both the electric motor and the petrol engine for propulsion.

Key features of PHEVs include:

• Ability to run on electricity for short trips, reducing emissions in urban areas
• Extended overall range due to the combination of electric and petrol power
• Flexibility to use either electric or petrol power, reducing range anxiety
• Potential for significant fuel savings on shorter journeys
• Lower emissions compared to conventional vehicles, especially when used primarily in electric mode

What is a Hybrid Electric Vehicle?

Aside from comparing BEVs vs PHEVs, it鈥檚 worth mentioning Hybrid Electric Vehicles (HEVs) to provide a complete picture. HEVs use both an internal combustion engine and an electric motor, but unlike PHEVs, they cannot be plugged in to charge. Instead, they recover energy through regenerative braking and by using the engine to charge the battery.

HEVs typically offer improved fuel efficiency compared to conventional vehicles but have a much more limited electric-only range compared to PHEVs and BEVs.

What is a Mild Hybrid Electric Vehicle?

Mild Hybrid Electric Vehicles (MHEVs) represent another step in the electrification spectrum. These vehicles use a small electric motor to assist the internal combustion engine, primarily during acceleration and when the vehicle is coasting. MHEVs cannot run on electric power alone but offer slight improvements in fuel efficiency and reduced emissions compared to conventional vehicles.

The key difference between MHEVs and PHEVs is that mild hybrids have a much smaller battery and electric motor and cannot be plugged in to charge.

What is the difference between a BEV and PHEV?

When comparing PHEVs and BEVs, several key differences emerge:

Conclusion

As the electric vehicle market continues to evolve, it鈥檚 crucial to understand the differences between these technologies. According to the Society of Motor Manufacturers and Traders (SMMT), BEVs have seen significant growth in the UK market, . However, many of these sales were to business and fleet buyers, highlighting the importance of tax incentives in driving adoption.

When considering the total cost of ownership, the initial purchase price of BEVs remains higher. Government incentives can play a crucial role here to incentivise business to invest in BEVs. found that the overall cost of operating a BEV consistently outperforms comparable internal combustion engine vehicles (ICEVs). However, the average purchase price of BEVs remains higher. This is where government incentives can play a crucial role.

Looking ahead, advancements in battery technology are set to further improve the performance and appeal of both BEVs and PHEVs. For example, , significantly closing the gap with BEVs in terms of electric-only driving capability.

At WEX, we鈥檙e committed to supporting our customers as they navigate the transition to electric vehicles. Our fleet management solutions are evolving to accommodate the changing needs of fleet managers. As the market continues to develop, we鈥檒l be here to provide the tools and insights you need to make informed decisions about your vehicle fleet, whether you鈥檙e considering BEVs, PHEVs, or a mix of technologies.

As you consider the best options for your fleet, remember that a mixed fleet approach – incorporating both electric and traditional vehicles – can provide a pragmatic transition strategy. This allows businesses to gradually familiarise themselves with EV operation and management while maintaining operational reliability. WEX鈥檚 solutions can help you determine the right mix of vehicle technologies to meet your operational goals and sustainability targets.

The post BEVs vs PHEVs: Understanding Electric Vehicle Technology appeared first on 糖心Vlog[en-gb].

What is the HMRC mileage rate for electric cars?

The HMRC electric car mileage allowance depends on whether you鈥檙e using a personal vehicle or a company-owned car for business purposes. For personal electric vehicles used for work, the rates are the same as those for petrol and diesel cars under the Approved Mileage Allowance Payments (AMAPs) scheme:

• 45p per mile for the first 10,000 miles
• 25p per mile for any additional miles thereafter

For company-owned electric cars, HMRC has introduced a specific Advisory Electricity Rate (AER). As of September 1, 2024, the electric car mileage allowance for company vehicles is set at 7p per mile. This rate is designed to cover the cost of electricity used for business travel in pure electric company cars.

What are the HMRC business mileage rates?

The HMRC business mileage rates vary depending on the type of vehicle and whether it鈥檚 personally owned or provided by the company. Here鈥檚 a breakdown of the current rates:

These rates are applicable for the 2024/25 tax year and are subject to change. It is important to note that the rates for personally owned vehicles (45p/25p) are tax-free allowances, while the company car rates are used for reimbursing fuel costs only.

How are mileage rates calculated?

HMRC calculates and revises mileage rates based on several factors, including:

• Average fuel prices (petrol, diesel, and electricity)
• Vehicle efficiency and running costs
• Market trends and adoption rates of electric vehicles
• Feedback from businesses and industry stakeholders

The Advisory Fuel Rates (AFRs) for petrol and diesel company cars are typically reviewed quarterly, with changes implemented on March 1, June 1, September 1, and December 1 each year. The Advisory Electricity Rate (AER) for electric company cars is also subject to periodic review, although changes may not occur as frequently.

For personally owned vehicles, the AMAP rates (45p/25p) have remained stable for several years. However, HMRC may consider adjusting these rates in the future to reflect changes in vehicle technology and running costs, particularly as electric vehicles become more prevalent.

Can you still claim 45p per mile for an electric car?

Yes, you can claim 45p per mile for the first 10,000 miles when using a personal electric car for business purposes. This rate applies to all cars, regardless of their fuel type (petrol, diesel, hybrid, or electric). However, it is crucial to understand the distinction between personal and company-owned vehicles:

• Personal electric vehicles: Employees can claim up to 45p per mile for the first 10,000 miles and 25p per mile thereafter using the Approved Mileage Allowance Payments (AMAPs) scheme. This is a tax-free allowance that covers all vehicle-related expenses, including electricity costs, wear and tear, and insurance.
• Company-owned electric vehicles: For business travel in a company-provided electric car, employees should use the Advisory Electricity Rate of 7p per mile (as of September 1, 2024) for reimbursement of electricity costs only. This lower rate reflects the reduced running costs of electric vehicles compared to their petrol or diesel counterparts.

It is worth noting that if an employer pays less than the approved amount for business mileage in a personal vehicle, the employee may be able to claim Mileage Allowance Relief (MAR) on the difference through their tax return.

As the adoption of electric vehicles continues to grow, businesses are adapting their mileage reimbursement policies to accommodate this shift. For example, Royal Mail has been trialling a new reimbursement tool called Paua Reimburse, which aims to provide fair compensation for electric company car drivers based on their actual electricity costs. This type of innovation demonstrates the evolving landscape of mileage reimbursement for electric vehicles in the UK business sector.

For those considering a transition to electric vehicles, it is worth noting that renewable diesel may be a viable alternative as an intermediate step. This option can help reduce carbon emissions while maintaining the familiarity of traditional fuel infrastructure.

Additionally, businesses can explore ways to reduce insurance premiums through GPS tracking, which can be particularly beneficial for fleets transitioning to electric vehicles. These tracking systems can provide valuable data on driving behaviour and vehicle usage, potentially leading to cost savings and improved fleet management.

Conclusion

For businesses looking to streamline their mileage tracking and reimbursement processes, 糖心Vlogoffers comprehensive fleet management solutions that can help automate these tasks and ensure compliance with HMRC guidelines. 

As we progress towards a more sustainable future, understanding the nuances of electric car mileage rates and reimbursement policies will become increasingly important for businesses and employees. By staying informed about HMRC guidelines and leveraging modern fleet management tools, organisations can efficiently manage their electric vehicle fleets while ensuring fair compensation for their employees鈥� business travel.

The post Electric Car Mileage Rates: Understanding HMRC Guidelines for 2024 appeared first on 糖心Vlog[en-gb].

What is BiK rate?

Benefit in Kind (BiK) (also referred to as company car tax) is a tax on employees who receive perks or benefits from their employer in addition to their salary. For company cars, the BiK rate is a percentage of the vehicle鈥檚 value that is added to the employee鈥檚 taxable income. This rate varies depending on the car鈥檚 CO2 emissions, making electric cars particularly attractive due to their low or zero emissions.

How is BiK calculated?

The calculation for BiK on company cars involves three main factors:

• The car鈥檚 P11D value (list price including options, VAT, and delivery charges)
• The BiK percentage rate (based on CO2 emissions)
• The employee鈥檚 income tax bracket

The formula is: (P11D value x BiK percentage rate) x Income tax rate

For example, if an electric car has a P11D value of 拢40,000, the current BiK rate of 2%, and the employee is in the 40% tax bracket, the annual BiK tax would be:

(拢40,000 x 2%) x 40% = 拢320 per year

What is the BiK rate for electric cars in 2024?

As of 2024, the BiK for electric cars remains low, at 2%. This rate has been fixed since the 2020/21 tax year and is set to continue until the end of the 2024/25 tax year. This represents a significant incentive for company car drivers to choose electric vehicles over their petrol or diesel counterparts.

Looking ahead, the government has announced a gradual increase in BiK rates for electric cars:

Even with these increases, electric cars will still maintain a substantial tax advantage over conventional vehicles.

How does the BiK tax on electric cars compare with hybrid or petrol cars?

The difference in BiK rates between electric cars and their petrol, diesel, or hybrid counterparts is substantial. While electric cars benefit from a flat 2% rate, other vehicles are taxed based on their CO2 emissions, which can result in significantly higher BiK rates.

For example:

This stark contrast demonstrates the financial incentives for choosing electric company cars. According to Electric Car Guide, .

Do you pay BiK tax on electric cars?

Yes, you do pay company car tax on electric cars, but at a significantly reduced rate compared to conventional vehicles. The current 2% rate for electric cars means that employees can enjoy the benefits of a company car with a much lower tax liability.

It鈥檚 worth noting that while the BiK rate for electric cars is low, it鈥檚 not zero. This is a change from the 2020/21 tax year when fully electric vehicles enjoyed a 0% BiK rate. However, even at 2%, the tax burden remains minimal compared to other fuel types.

The impact of these low BiK rates on electric vehicle adoption has been significant. Fleet News reports that the introduction of the zero-percentage BiK rate in 2020 (which has since risen to 2%) has helped thousands of company car drivers make the switch to electric vehicles.

For businesses considering transitioning their fleet to electric vehicles, the BiK savings can be substantial. for fleets are gaining unprecedented popularity, thanks to the favourable BiK tax treatment for electric vehicles. With rates remaining low until at least 2027/28, there鈥檚 a clear financial incentive for both employees and businesses to go electric.

Conclusion

As we move towards a greener future, the BiK rates for electric cars continue to make them an attractive option for company car drivers and fleet managers. 

While rates are set to increase slightly in the coming years, electric vehicles will maintain a significant tax advantage over their petrol and diesel counterparts. By understanding and leveraging company car tax rates, businesses can make informed decisions about their fleet composition, potentially saving money while reducing their carbon footprint.

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Tighter timeline controls

Revolutionizing payment security, virtual cards are an unparalleled deterrent against fraud through innovative features like one-time-use card numbers and tokenization. 

Unlike traditional payment methods with static information, virtual cards generate a fresh set of credentials for every payment, rendering stolen data useless for subsequent unauthorized transactions. This significantly reduces the risk of data breaches and reinforces the security of financial transactions. 

They also employ tokenization, replacing sensitive payment information with a unique token. Even if intercepted, this tokenized approach ensures the information holds no value for potential fraudsters, as it remains indecipherable, thereby elevating virtual cards to the forefront of payment security.

These are two reasons why digital payments are  to fraud than check payments. 

To learn more about tokenization, watch this video:

Tighter spending controls

Virtual cards empower organizations with enhanced control and security in their financial transactions, particularly in mitigating the risk of fraud. By providing businesses the ability to establish spending limits and customize card usage according to specific needs, virtual cards counteract potential unauthorized or excessive spending that could lead to fraudulent activities.

Organizations can streamline their transactions by creating unique virtual cards designated for specific purposes and predefined amounts for each supplier. This level of customization not only simplifies the payment process but also ensures that funds are allocated precisely as intended, reducing the likelihood of unauthorized transactions. In essence, they provide a dynamic and secure framework for businesses to navigate their financial landscape, offering a proactive approach to managing spending while protecting against potential risks for fraud. 

Enhanced data and reconciliation

Virtual cards integrate payment data directly into each credit card transfer. Unlike traditional payment methods, where transaction data might be detached or require manual reconciliation, virtual cards automatically embed comprehensive payment information with each transfer. This automation not only expedites the expense reconciliation process but also facilitates a seamless analysis of purchase data. Businesses can effortlessly track and interpret transaction details without the need for extensive manual intervention.

This streamlined approach not only enhances efficiency but also contributes to a more accurate and transparent financial reporting system, empowering organizations to make informed decisions based on real-time, data-driven insights.

More secure distribution

Virtual cards offer a nimble solution to the ever-evolving needs of organizations by enabling quick and easy issuance. Unlike traditional physical cards or checks (), the process of generating a virtual card is fast and efficient. This allows organizations to respond promptly to changing requirements, whether it be adapting to new vendors, managing fluctuating payment volumes, or addressing emergent financial situations. The ability to issue virtual cards rapidly empowers businesses to optimize their payment strategies in real time.

Organizations can minimize the risk of unauthorized card use by promptly canceling or replacing virtual cards as needed. This flexibility ensures that, in the event of a security concern or a change in payment parameters, businesses can take immediate action, enhancing overall security and control on virtual card fraud. 

Improved integration with existing systems

Integrating virtual card solutions with existing expense management systems represents a crucial step forward in optimizing financial processes for businesses. This integration streamlines reconciliation and enhances virtual card fraud detection capabilities.

Unlike the traditional method of manually inputting payments by accounts payable (AP) teams, the integration of virtual card solutions automates and synchronizes transaction data seamlessly with expense management systems. This automation reduces the risk of human error, expedites the reconciliation timeline, and ensures accuracy in financial records.

The real-time synchronization of virtual card transactions with the expense management system provides a dynamic and up-to-date view of financial activities, empowering businesses to identify and address any irregularities or suspicious transactions promptly. This integration not only improves operational efficiency but also protects the overall security and reliability of financial transactions.

For more insights and updates on corporate payments, check out:

• Beyond corporate payments: Is the secret to better cash flow management AI?
• 4 expectations when evaluating service quality from payments providers
• 2025 payment trends: What B2B companies need to know

Learn more about how 糖心Vlogpayment solutions can be tailored to your business, so you can accelerate and streamline operations while creating lasting growth and success for your organization.

The information in this blog post is for educational purposes only. It is not legal or tax advice. For legal or tax advice, you should consult your own legal counsel, tax, and investment advisers.

The post 5 ways you can reduce fraud by choosing virtual cards appeared first on 糖心Vlog[en-gb].

Single point of contact with multi-layered support

A single point of contact can create remarkable efficiency and enhance your business operations. This approach addresses a key service gap frequently experienced by businesses: siloed support and fragmented knowledge among different vendor representatives. 

The single-point-of-contact model can:

• Reduce friction during communication of issues.
• Deepen understanding of your needs.
• Accelerate resolutions and minimize downtime.
• Foster a proactive partnership through an in-depth understanding of your business. 

This isn鈥檛 just a contact; it鈥檚 a strategic partner invested in your success. When choosing a payment vendor, prioritize one that offers a dedicated single-point-of-contact model backed by a multi-layered support structure. This combination bridges service gaps and ensures you receive the personalized attention and expertise your business deserves. 

24/7 accountability: Uninterrupted support

Your business may depend on your ability to support sales and payment processing at all hours of the day. You need a payment provider that鈥檚 there for you whenever you need help.

A reliable payments vendor recognizes someone on tap at all times who is responsible for your account. This accountability extends beyond standard office hours so you have unwavering support regardless of the time zone or business hours. 

Proactive account evaluation

Your payments vendor should be a proactive ally. This approach bridges a critical service gap experienced by many businesses: Relying solely on internal monitoring and missing out on valuable insights from their payment processors. 

Instead of waiting for problems to surface, a proactive payment vendor is a dedicated account manager who actively evaluates your payments ecosystem. The owner of your account should actively engage with you, offering insights and suggestions to:

• Enhance efficiency
• Reduce costs
• Capitalize on emerging opportunities

Don鈥檛 settle for reactive support. Choose a payment vendor that embraces proactive account evaluation, unveiling opportunities and propelling your business forward. Remember, a true partner prioritizes your success, ensuring your payment ecosystem is optimized for efficiency, cost-effectiveness, and future growth. 

Smooth implementation

Most businesses focus solely on comparing features and fees when choosing a payment provider. While these are important, consider one hidden gem: A provider that invests in building relationships before you even sign the papers. This doesn鈥檛 just mean a friendly sales call, it鈥檚 about deep knowledge and genuine care. 

Pre-existing relationships translate into tangible benefits. By understanding your pain points beforehand, the provider can create a personalized implementation plan that minimizes disruption and maximizes efficiency. Also, with a clear understanding for your business, the provider can identify and address potential integration issues before they occur, saving you time and money. 

Finally, a tailored solution and proactive support mean you can start reaping the benefits of your payment system sooner rather than later. This is because a created strong foundation of trust and understanding fosters a collaborative relationship, where your provider becomes a true partner in your growth, continuously adapting to your evolving needs.

Where do we find these relationship-first providers? Look for these points:

• Find companies with dedicated onboarding teams and personalized support options.
• Ask about their approach to understanding customer needs and tailoring solutions.
• Read customer testimonials and reviews to see if relationship building is a recurring theme. 

For more insights and updates on corporate payments, check out:

• Virtual card numbers: What they are and what you need to know
• Beyond corporate payments: Is the secret to better cash flow management AI?
• 5 ways you can reduce fraud by choosing virtual cards

Learn more about how 糖心Vlogpayment solutions can be tailored to your business, so you can accelerate and streamline operations while creating lasting growth and success for your organization.

The information in this blog post is for educational purposes only. It is not legal or tax advice. For legal or tax advice, you should consult your own legal counsel, tax, and investment advisers.

The post 4 Key Expectations When Choosing a Payments Provider appeared first on 糖心Vlog[en-gb].

What are virtual card numbers?

Virtual card numbers work in much the same way with virtual card purchases as physical card numbers do with physical credit cards. VCNs are designed to be used for specific transactions and have controls, including dates of use, types of use, and dollar amounts. Unlike their physical card counterparts, VCNs are unique, randomly generated sets of digits designed for a specific transaction or merchant. Here鈥檚 a closer look at their key attributes:

Dynamic generation

Virtual card numbers are generated dynamically for each transaction and/or for specific merchants. They are not tied to the physical card numbers themselves but are linked to the original card account. 

Limited validity

Virtual card numbers can be set for single use or a short timeframe. This feature reduces the risk of unauthorized use even if the VCN is intercepted. 

Transaction-specific

With virtual cards, you can assign specific spending limits and expiration dates to each virtual card number issued. Therefore, each virtual card number is associated with a predefined budget and validity, ensuring responsible spending within approved boundaries. 

This level of control empowers you to better manage expenses and reduce the risk of overspending and unauthorized purchases. 

Privacy protection

Ever worry about online fraud? Virtual card numbers are generated as needed. This added layer of protection minimizes the risk of identity theft and unauthorized access to sensitive financial information, giving you peace of mind and protecting your valuable business data.

Comparing virtual card numbers and physical card numbers

As a business owner, navigating the world of payments can feel like a high-stakes juggling act. Striking the right balance between security, flexibility, and control is crucial for managing expenses and protecting your valuable financial data. In this arena, both physical and virtual card numbers hold distinct advantages and limitations. Let鈥檚 delve into the key differences to empower you with informed decision-making.

Tangibility

Physical cards and their numbers offer the familiar comfort of a tangible payment tool, readily accepted by most vendors worldwide. However, their physical nature exposes them to loss, theft, and skimming risks. Virtual card numbers, existing solely as digital information, mitigate these concerns.

Security

For security-conscious businesses, virtual card numbers stand tall. According to the Association for Financial Professionals, in 2022,  were subject to fraud, compared to the 9% for virtual cards. Temporary, randomly generated virtual card numbers offer increased protections and minimize damage from breaches. Real-time transaction notifications and instant freeze/disable options offer further peace of mind. While physical cards offer fraud protection measures, their static numbers and information remain a potential vulnerability. 

Flexibility

Budget control takes center stage with virtual card numbers. Set spending limits, expiration dates, and even merchant restrictions for each card number, tailoring them to specific purchases or employee needs. This is a game-changer for managing expenses and preventing unauthorized charges. Physical cards, though convenient, lack such fine-tuned control.

Acceptance

Physical card numbers reign supreme in the global acceptance arena. However, virtual card transactions are  as more suppliers accept them. Choosing a virtual card provider that has the resources, expertise, and track record of increasing supplier acceptance of virtual cards is crucial to your success. 

For more insights and updates on corporate payments, check out:

• 2025 payment trends: What B2B companies need to know
• The role of B2B payment options in travel agency operations
• 4 expectations when evaluating service quality from payments providers

Learn more about how 糖心Vlogpayment solutions can be tailored to your business, so you can accelerate and streamline operations while creating lasting growth and success for your organization.

The information in this blog post is for educational purposes only. It is not legal or tax advice. For legal or tax advice, you should consult your own legal counsel, tax, and investment advisers.

The post Virtual card numbers: What they are and what you need to know appeared first on 糖心Vlog[en-gb].

Let鈥檚 explore the role of B2B payments in the travel industry by highlighting common challenges, identifying solutions, and discussing benefits.

Common payment challenges for travel agencies

The complex nature of travel agency payments, coupled with myriad external variables, makes it challenging to navigate. Managing, controlling, and securing payments in this sector requires future-proof solutions that streamline processes. But before discussing the benefits that B2B payment options bring to travel agencies and consumers, it鈥檚 important to understand the challenges that need to be navigated and solved:

Reconciliation/dispute management/resolution

Due to varying distribution channels and levels of technology integration, hotels and OTAs often disagree over contracted stay amounts. Ergo, hotels will frequently 鈥渇orce post鈥� the amount they believe they are entitled to for a stay. This forces the OTA to dispute any reconciling amount, initiating a dispute and/or chargeback process. Managing this challenge takes effort and, over time, can eat away at the outstanding benefits of virtual card use.

Fraud

Fraudsters are becoming more adept. As payment practices change, bad actors adapt their strategies for obtaining valid card numbers through BIN attacks, AI, phishing tactics, social engineering, and more. This creates a need for robust B2B payment security, monitoring, and proactive partnership to mitigate the risk of fraud and its potential impact on OTAs and suppliers.

The benefits of virtual cards B2B payment options for travel agencies

Many of the above challenges are the result of outdated account payable payment processes. Thankfully, 糖心Vloghelps OTAs optimize travel payments to gain efficiencies, cut costs, generate revenue, and more. Here鈥檚 how:

Simplicity

With well-equipped B2B payment options, there鈥檚 no need to set up a traditional accounts payable (AP) process with every supplier. Instead, simply append a virtual card to a reservation, and the payment 鈥渞ides the same rails鈥�. This makes AP and credit much easier to manage.

Faster payment

Traditional invoicing methods are slow and clunky. With virtual payments, suppliers get guaranteed and immediate payment, which improves supplier relationships.

Direct communication

With the merchant model in place to take advantage of virtual payment solutions, suppliers can work directly with OTAs on billing issues, when otherwise they鈥檇 have to contact individual consumers directly. This effectively improves the customer experience for travelers, who no longer need to worry about managing their disputes.

More control

With 糖心Vlogbusiness payments, OTAs control the entire end-to-end client experience. If something goes wrong, the OTA can charge or refund suppliers鈥� customers directly, rather than having to coordinate with the airlines and hotels, which takes time.

Brand new revenue stream

The more suppliers accept virtual cards, the more rebates you earn, which creates a new revenue stream for your business.

More and better data collection

Virtual card payments add rich metadata to each transaction, following the payment from card creation through to posting and reconciliation. This allows OTAs to 鈥渁uto-reconcile鈥� most payments while gaining access to more valuable data throughout the process.

Payments are secure

With virtual cards, OTAs can create a single payment per reservation as well as enter a specified amount, merchant category, and date. Any deviation from these pre-set parameters will cause a decline, meaning the cards are nearly impossible to use for anything other than their intended purpose. And since single-use virtual cards are only valid for one use, they decrease an OTA鈥檚 vulnerability to fraud.

Cross-border benefits

All credit cards, regardless of issuing location, will typically work anywhere in the world. Local merchants can charge cards in their local currency, and credit card companies will convert the payment back to the currency of issuance. While convenient, this leads to hefty foreign exchange (FX) rates and other cross-border conversion expenses.

糖心Vlogvirtual cards can be issued in 20+ currencies, allowing customers to be billed and make payments in those currencies, effectively avoiding FX and conversion expenses altogether. Furthermore, rich data inclusion on each transaction helps facilitate reconciliation, regardless of the billing and transaction currencies.

Simplifying OTA payments

糖心Vlogworks with leading travel intermediaries to efficiently and securely pay travel suppliers anywhere in the world.

From accounts payable to supplier enablement and payment processing, 糖心Vlogcovers the full breadth of your payment processes to deliver streamlined workflows, automation, new revenue, reporting, and more.

For more insights and updates on corporate payments, check out:

• 2025 payment trends: What B2B companies need to know
• Beyond corporate payments: Is the secret to better cash flow management AI?
• Virtual card numbers: What they are and what you need to know

Learn more about how 糖心Vlogpayment solutions can be tailored to your business, so you can accelerate and streamline operations while creating lasting growth and success for your organization.

The information in this blog post is for educational purposes only. It is not legal or tax advice. For legal or tax advice, you should consult your own legal counsel, tax, and investment advisers.

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Faster, flexible payment options have the potential to improve customer satisfaction, enhance cash flow, and create a sustainable competitive advantage for businesses.

In the first two installments of our 鈥淏eyond corporate payments鈥� series, we explored the role of secure payments in building trust with suppliers and the power of AI-driven solutions in accounts payable processes. Now, let鈥檚 dive into how flexible and fast payment options can fuel your business growth.

The , sponsored by WEX, highlights the impact of payment options on business growth. Here鈥檚 how offering flexible and fast payment solutions can benefit your business:

Using digital and automated payments to drive business growth

The PYMNTS study found that none of the businesses using faster payment methods (like online or electronic payments) reported a negative impact on growth. However, 36% of companies relying primarily on paper methods (like checks or cash) found their payment options to be limiting. This contrast highlights the effectiveness of digital and automated payments, such as virtual cards, over traditional methods, such as cash and checks.

Advantages of digital and automated payments include:

• Reduced manual errors: Automated systems minimize human error, ensuring accurate and timely payment processing.
• Improved reconciliation: Digital payments simplify reconciliation processes, saving time and reducing the risk of discrepancies.
• Enhanced security: Advanced security features in digital payment solutions help protect sensitive financial data from fraud and unauthorized access.
• Real-time insights: Digital platforms provide real-time data and analytics, enabling you to monitor cash flow, identify trends, and make informed decisions.

Boosting customer satisfaction and loyalty

Offering convenient payment options can significantly enhance customer satisfaction and loyalty. Customers appreciate flexibility and speed, especially when it comes to payments. By providing a variety of payment methods and ensuring quick processing times, you can create a positive customer experience that encourages repeat business.

PYMNTS also found that companies offering instant payment methods saw an 11%  over those that don鈥檛. This highlights the strong connection between fast payments and increased customer loyalty. 

Additionally, offering flexible payment options, such as mobile wallets, contactless payments, or buy-now-pay-later options, can cater to diverse customer preferences and attract a wider customer base.

Enhancing cash flow management

Efficient cash flow management is essential for the success of any business. By offering flexible and fast payment options, you can improve your cash flow management in several ways:

• Faster receivables: Incentives like early payment discounts can encourage customers to pay bills quicker, boosting cash flow. As one payment executive noted, 鈥渃learance or approval through some payment options can be time consuming, which makes it hard for us to get early payment discounts.鈥�
• Reduced payment processing costs: Digital payment solutions also eliminate the need for manual processing and paper checks, reducing mailing and processing costs and improving efficiency.

Discover new business opportunities

Flexible and fast payment options can also help you uncover new business opportunities. By offering a wider range of payment methods, you can expand your customer base and reach new markets. 

For example, international customers may prefer certain payment methods that are more common in their region. Additionally, offering buy-now-pay-later options can attract customers who may not have the full purchase price upfront, potentially leading to increased sales.

The importance of choosing the right payment partner

Selecting the right payment partner is important for reaping the full benefits of flexible and fast payment options. Consider the following factors when evaluating potential partners:

• Security: Ensure that your payment partner has security measures in place to protect sensitive financial information.
• Flexibility: Look for a partner that offers tailored solutions for your business needs.
• Integration: Ensure seamless integration with your existing systems for efficient account management.
• Customer support: Choose a partner with reliable customer support to address any issues or inquiries.

Consider partnering with WEX for your corporate payment needs

With WEX, you can streamline your payment processes, enhance security, and improve your overall business performance.

In modern B2B industries offering flexible and fast payment options is essential for staying ahead of the curve. By prioritizing customer convenience, improving cash flow management, and leveraging digital and automated payments for new business opportunities, you can drive long-term growth for your company.

For more insights and updates on corporate payments, check out:

• 2025 payment trends: What B2B companies need to know
• The role of B2B payment options in travel agency operations
• 4 expectations when evaluating service quality from payments providers

Learn more about how 糖心Vlogpayment solutions can be tailored to your business, so you can accelerate and streamline operations while creating lasting growth and success for your organization.

The information in this blog post is for educational purposes only. It is not legal or tax advice. For legal or tax advice, you should consult your own legal counsel, tax, and investment advisers.

Source: 

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