Corporate cards

What is a virtual prepaid card and how to apply for one?

Apr 05, 2024

The virtual prepaid card is an excellent choice of payment tool for businesses that prioritize safety and usability. These cards offer a secure and convenient way to manage business expenses. They can be easily issued, controlled, and tracked by employers, making them an ideal solution for businesses of all sizes.

Virtual prepaid cards also help minimize the risk of fraud or misuse of funds, as they can be restricted to specific vendors or categories of purchases.

Additionally, the typical prepaid virtual card India has available offers enhanced flexibility and transparency, allowing businesses to set spending limits, monitor transactions in real-time, and easily reconcile expenses.

Overall, using virtual prepaid cards can simplify and streamline the expense management process, saving time and resources for businesses.

What is a virtual prepaid card?

A virtual prepaid card is a digital version of a physical prepaid card that can be used to make online purchases. It is essentially a prepaid debit card that exists only in digital form, with no physical card or plastic. These cards are typically generated as random numbers that are linked to a particular bank account.

Virtual prepaid cards are typically issued by banks or payment companies and can be loaded with funds by individuals or businesses. They offer enhanced security, control, and convenience for online transactions.

How do virtual prepaid cards work?

Virtual prepaid cards are designed to be used in the digital environment, they work pretty much the same way as physical prepaid cards. These cards come with a unique 16-digit card number, security code, and expiration date, which can be used to make online purchases.

Users can access the card number and details easily from a mobile app or website. Funds can be loaded onto the virtual prepaid card either by transferring money from a bank account or another physical prepaid card.

The main difference between these cards and their physical version is that they are much safer and more convenient to use because of the absence of a physical tool to carry around and protect.

Benefits of virtual prepaid cards for businesses

1. Increased security

One major advantage of the virtual prepaid card is the increased security they provide. Since virtual prepaid cards are not physical cards, there is no risk of them being lost or stolen, as there is no physical card to misplace. This can be especially important for businesses that need to make regular payments or reimbursements to employees, contractors, or suppliers.

2. Flexibility and convenience

Another advantage of the prepaid virtual card India has to offer is their flexibility and convenience. They can be easily accessed online and used to make purchases or payments anywhere that accepts the card's network, making them a convenient option for businesses that need to make payments or purchases quickly and easily.

Additionally, virtual prepaid cards can often be easily reloaded or topped up, making them a flexible option for businesses that need to manage cash flow.

3. Better budget control and expense management

The virtual prepaid card also offers better budget control and expense management. They can be set up with spending limits, restrictions on where they can be used, and other controls, making it easier for businesses to monitor expenses and prevent overspending in real-time.

This can be especially useful for businesses with multiple employees or contractors who need to make purchases or payments on behalf of the company.

4. Reduced reliance on traditional payment methods

Another benefit of virtual prepaid cards is the reduced reliance on traditional payment methods, such as checks or wire transfers.

With virtual cards at your disposal, you won’t have to worry about the issues commonly associated with traditional payment methods such as human errors, check bouncing, and so on.

5. More efficient payment method

Virtual prepaid cards are a more efficient payment method since they can be easily loaded with funds and used to make payments or purchases without the need for complicated paperwork or approval processes. There is also no need to carry around and protect a physical card.

6. No credit check required

Virtual prepaid cards are also an attractive option for businesses because no credit check is required. This makes them accessible to businesses that might not want to reveal their credit scores or have no credit history to show, and who may have difficulty obtaining other types of payment cards or credit accounts.

7. Easy to obtain

Finally, virtual business prepaid cards are easy to obtain. They can often be obtained easily and quickly by completing an application online or by directly contacting an issuing platform.

Get a convenient and flexible payment option for your business

Business use cases of virtual prepaid cards

Employee expense management

Virtual prepaid cards can be easily loaded with a specific amount of funds and issued to employees to cover business expenses such as travel, meals, and other related expenses. These cards can be set up with spending limits, restrictions on where they can be used, and other controls to help businesses monitor expenses and prevent overspending.

Real-time expense tracking and control eliminates the need for manual expense reporting and simplifies the reimbursement process for both employees and employers.

Business travel expenses

Virtual prepaid cards are beneficial for managing business travel and entertainment expenses as they provide effortless access to funds while on the go and can be equipped with advanced security features to safeguard against fraudulent and unauthorized transactions.

Furthermore, virtual prepaid cards simplify the monitoring and balancing of travel expenses, thereby making it easier for businesses to manage and track travel expenses across numerous employees.

Vendor payments

Virtual prepaid cards can be used for vendor payments, providing a quick and efficient way for businesses to pay their suppliers or contractors. These cards can be loaded with a specific amount of funds and issued to vendors, providing them with immediate access to funds for their services or products.

The use of virtual cards for vendor payments can help businesses streamline their vendor payment processes, reduce paperwork, and improve cash flow management.

Cross-border transactions

Virtual prepaid cards can also be useful for cross-border transactions, providing a secure and efficient way for businesses to make payments or purchases in foreign currencies.

These cards can be loaded with funds in the relevant currency, and the use of virtual cards can help businesses avoid the high fees associated with traditional cross-border payment methods such as wire transfers or foreign currency transactions.

How to apply for a virtual prepaid card?

To apply for a virtual prepaid card, the following steps are typically involved:

Research potential providers to find a suitable one that meets your needs.

Check if you are eligible for the virtual prepaid card and meet any specific requirements or criteria set by the provider.

Create an account with the provider and submit any necessary documents or information for verification.

Create the card and load funds onto it using a payment method such as a bank transfer or credit/debit card.

Activate the card once the funds have been loaded and start using it to make purchases online or through a mobile app.

Tips for using virtual prepaid cards effectively

Set spending limits

Set spending limits for each virtual card and track expenses to ensure they are being used appropriately. This helps to prevent overspending and misuse of funds.

Use for specific purposes

Assign virtual cards for specific purposes such as travel, office supplies, or online subscriptions. This helps businesses to manage expenses and to allocate budgets more efficiently.

Create an expense policy

To avoid confusion, it is important to create an expense policy that outlines what expenses can be covered by the virtual card, and what expenses need to be reimbursed.

Set budgets

Setting budgets for virtual cards helps businesses to monitor expenses and prevent overspending. It also helps businesses to allocate funds more efficiently.

Monitor spending habits

Monitor employee spending habits to ensure that the virtual card is being used appropriately. If unusual spending patterns are detected, it may be necessary to investigate further.


Integrating expenses made via virtual cards with accounting software can simplify expense management and help businesses to identify trends in spending.

Why choose Volopay corporate cards for your business?

There are several reasons why choosing Volopay cards for expense management is an excellent decision for a business organization.

For starters, Volopay offers comprehensive expense management solutions that provide enhanced security, customizable spending limits, automated expense reporting, and seamless integration with popular accounting software like Xero and QuickBooks.

The Volopay prepaid virtual card comes as a user-friendly solution for managing expenses, enabling businesses to track expenses, set spending limits, and automate expense reporting to prevent overspending and reduce the risk of errors.

The advanced security features of Volopay's corporate cards, including multi-level approval workflows, ensure protection against fraudulent transactions and data breaches. You can even issue unlimited virtual prepaid cards with Volopay at no additional cost whatsoever.

Corporate cards to help streamline your expense reporting process

FAQs on virtual prepaid cards

How do I create a virtual prepaid card?

To create a virtual prepaid card, you typically need to find a provider that offers them and then follow their specific application process. This may involve completing an online form or contacting the provider directly to request a virtual prepaid card.

Once approved, you may receive a virtual card number and other relevant details that you can use to make purchases online or through a mobile app.

Are virtual prepaid cards safe?

Yes, virtual prepaid cards are generally safe. They offer increased security compared to physical cards since they don't have a physical form that can be lost or stolen.

Additionally, many providers offer advanced security features such as two-factor authentication and fraud monitoring to help protect against unauthorized use.

Are virtual prepaid cards and debit cards the same?

No, virtual prepaid cards and debit cards are not the same. While both types of cards can be used to make purchases and withdraw cash, debit cards are linked to a bank account and draw funds directly from that account when used, while virtual prepaid cards are loaded with a specific amount of funds in advance.

Can I use a virtual prepaid card anywhere?

The ability to use a virtual prepaid card anywhere may depend on the specific card and the network it uses. Many virtual prepaid cards are affiliated with major payment networks such as Visa or Mastercard and can be used anywhere those networks are accepted.

However, it's always a good idea to check with the provider to see if there are any restrictions or limitations on where the card can be used.

How long is virtual prepaid card valid?

The validity of a virtual prepaid card may depend on the specific card and the terms and conditions set by the provider or issuer. Some virtual prepaid cards may expire after a certain period of time, while others may have no expiration date.