How to Create and Manage Virtual Cards

In the ever-evolving world of business finance, managing payments securely and efficiently is more important than ever-especially for small and medium-sized businesses (SMBs) that can’t afford to waste time or money on outdated systems. Virtual cards are quickly becoming the go-to solution for modern businesses looking to streamline expense management, boost data security, and gain more control over their budgets. With Holdings, you get a financial platform that makes it easy to create, customize, and manage virtual cards, all while enjoying zero fees, high-yield APY, and seamless integration with your accounting tools.

What Are Virtual Cards and Why Do They Matter?

Virtual cards are digital versions of traditional payment cards, existing only in electronic form. Unlike physical credit cards or debit cards, you never have to wait for a piece of plastic to arrive in the mail. Instead, you can generate a virtual card instantly for a specific purpose-whether that’s paying a vendor, managing employee travel, or handling recurring subscriptions.

But the real magic of virtual cards is in the control and security they offer. Each card comes with a unique number, expiration date, and CVV, just like a physical card. You decide who can use it, how much they can spend, and for how long. If you spot anything suspicious, you can freeze or cancel the card with a click-no more waiting on hold with a bank or worrying about a data breach exposing your entire account.

Key Benefits at a Glance

• Enhanced security: Unique card numbers, instant freeze, and tokenization protect your business from fraud and credit card theft.

• Real-time controls: Set spending limits, restrict usage, and monitor every transaction as it happens.

• Seamless integration: Sync with your accounting software and expense management tools for effortless reconciliation.

• Zero fees: Holdings charges no fees for creating or managing virtual cards, so your money goes further.

Step-by-Step: How to Create Virtual Cards with Holdings

Let’s walk through exactly how you can set up and manage virtual cards using Holdings. Our platform is designed with SMBs in mind-no jargon, no hidden fees, just powerful tools that help you stay in control.

1. Log In and Head to the Cards Page

• Sign in to your Holdings account.

• From the main dashboard, select the “Cards” section. Here you’ll see all your existing cards-both virtual and physical-along with key details like card status, spending limits, and recent transactions.

2. Create a New Virtual Card

• Click the “+ Add” button to start the process.

• Choose the account from which the card will draw its balance. This ensures that your virtual card is tied to the right budget or department.

3. Enter Cardholder Details

• Fill in the required information: first and last name, date of birth, email address, and phone number.

• These details help verify the cardholder’s identity and keep your business compliant with financial regulations.

4. Customize Your Card Settings

• Select “Virtual Card” as the card type.

• Give the card a descriptive name-like “Marketing Budget,” “SaaS Subscriptions,” or “Employee Travel”-so it’s easy to track.

• Set optional spending limits, including daily and monthly purchase caps. This helps prevent overspending and keeps your budget on track.

5. Manage and Monitor Your Virtual Card

• Once your card is created, you’ll have access to its unique number, expiration date, CVV, and billing address.

• Use the Holdings dashboard to monitor every transaction in real time.

• Need to pause or cancel a card? Freeze or close it instantly-no paperwork, no hassle.

The Real-World Value of Virtual Cards for SMBs

Let’s dig deeper into how virtual cards can transform your business payments and expense management.

Enhanced Security and Data Protection

Security is a top concern for any business owner. Virtual cards offer several layers of protection:

• Unique numbers for every card: Each virtual card is generated with a unique number, so even if one is compromised, your main account and other cards remain safe.

• Instant freeze and cancellation: If you detect unauthorized activity, you can immediately freeze or cancel the card, stopping fraud in its tracks.

• Tokenization: Virtual cards use advanced tokenization technology, replacing sensitive payment card information with unique tokens. This reduces the risk of data breaches and cyberattacks.

• PCI DSS compliance: Holdings adheres to the Payment Card Industry Data Security Standard, ensuring your payment card data is protected at every step.

Streamlined Expense Management and Budget Control

Managing expenses shouldn’t be a headache. With Holdings virtual cards, you can:

• Assign cards for specific purposes: Issue cards for vendor payments, employee travel, or recurring subscriptions. Each card can have its own spending limits and controls.

• Automate reconciliation: Every transaction is tracked in real time and can be integrated directly with your accounting software, reducing manual data entry and the risk of errors.

• Prevent overspending: Set daily, monthly, or per-transaction limits to ensure budgets are followed and resources aren’t misused.

Flexibility and Scalability for Growing Businesses

As your business grows, so do your financial needs. Virtual cards from Holdings scale with you:

• Instant issuance: Create a new card in seconds-no waiting for a physical card to arrive.

• One-time or recurring use: Generate cards for single-use purchases or ongoing subscriptions.

• Easy deactivation: When a project ends or an employee leaves, simply deactivate the card-no need to collect physical cards or worry about lingering access.

Cost Savings and Operational Efficiency

Traditional business cards often come with hidden fees, lengthy approval processes, and mountains of paperwork. Holdings eliminates these pain points:

• Zero fees: No charges for creating, managing, or using virtual cards.

• Reduced admin overhead: No more chasing down receipts or processing reimbursements. Assign cards directly to employees or departments and track spending in real time.

• Simplified payroll and accounts payable: Virtual cards streamline payments to vendors and employees, cutting down on manual processes and paperwork.

Improved Customer Experience

A smooth payment process isn’t just good for your business-it’s good for your customers, too. When you use virtual cards to pay vendors or manage expenses, you avoid delays, reduce the risk of payment errors, and build a reputation as a reliable partner. Plus, with Holdings’ integrated platform, you can focus more on serving your customers and less on wrangling spreadsheets.

Common Use Cases: How SMBs Leverage Virtual Cards

Virtual cards aren’t just for tech startups-they’re a game-changer for all kinds of businesses. Here’s how real SMBs are using Holdings virtual cards to make their lives easier:

1. Online Purchases and Vendor Payments

• Securely pay for goods and services online without exposing your main account details.

• Reduce the risk of credit card fraud and chargebacks by using unique virtual cards for each vendor.

2. Subscription Management

• Assign a separate virtual card to each recurring service-like SaaS tools, marketing platforms, or cloud storage.

• When you cancel a subscription, simply deactivate the card to prevent unwanted charges.

3. Employee Travel and Expenses

• Provide employees with virtual cards for business trips, setting clear spending limits and usage restrictions.

• Track expenses in real time, making it easy to enforce policies and simplify reimbursement.

4. Marketing and Ad Campaigns

• Allocate specific budgets for pay-per-click (PPC) ads, sponsored content, or influencer partnerships.

• Use virtual cards to track ROI and ensure campaigns stay within budget.

5. Vendor Payments and Procurement

• Generate virtual cards with set limits for supplier transactions, making it easier to manage accounts payable and procurement.

• Improve vendor relationship management by ensuring timely, secure payments.

6. Project-Based Spending

• For agencies or consultancies, issue virtual cards tied to specific client projects.

• Track project expenses separately, making invoicing and reporting a breeze.

Real-World Example: A Tech Startup’s Virtual Card Strategy

Let’s say you run a fast-growing tech startup. You want to keep your marketing, software, and travel expenses organized-without drowning in paperwork or risking fraud.

• Google Ads: You create a virtual card named “Google Ads” with a $10,000 monthly limit. This card is used exclusively for your digital advertising campaigns.

• SaaS Subscriptions: Another card, “SaaS Subscriptions,” is set up with a $2,000 limit for tools like your CRM, design software, and cloud services.

• Employee Travel: For your sales team’s business trips, you issue individual virtual cards with daily spending caps.

With Holdings, you track every dollar, prevent budget overruns, and instantly freeze cards if anything looks off. No more surprise charges, lost receipts, or manual reconciliation.

How Holdings Integrates with Your Financial Ecosystem

Holdings isn’t just a bank-it’s your financial sidekick. Our virtual cards integrate seamlessly with your accounting software, expense management tools, and other business systems. Here’s what that means for you:

• Automated data entry: Transactions flow directly into your accounting system, reducing manual work and improving accuracy.

• Real-time analytics: Get instant insights into spending patterns, budget adherence, and cash flow.

• Regulatory compliance: Holdings meets PCI DSS and other industry standards, so you can be confident your data is secure.

Addressing Security, Compliance, and Risk Management

Tokenization and Access Control

Every Holdings virtual card uses tokenization, replacing sensitive payment card information with secure tokens. This minimizes the risk of data breaches and identity theft. You control who has access to each card, set permissions, and monitor usage-all from a single dashboard.

Fraud Detection and Chargeback Prevention

Holdings leverages advanced machine learning algorithms to spot suspicious transactions and prevent fraud. If a chargeback occurs, you have detailed transaction data at your fingertips to resolve disputes quickly and protect your business’s reputation.

Data Privacy and Regulatory Compliance

Your customer data and payment information are handled with the highest standards of security. Holdings complies with regulations like the General Data Protection Regulation (GDPR) and PCI DSS, so you can rest easy knowing your business is protected.

Frequently Asked Questions

Q: Can I use Holdings virtual cards for international payments?
A: Absolutely! Virtual cards work wherever major credit card networks are accepted, making them perfect for global vendors and online shopping.

Q: How quickly can I create a new virtual card?
A: Instantly. There’s no waiting period-just log in, fill out the details, and your card is ready to use.

Q: What happens if a virtual card is compromised?
A: You can freeze or cancel the card immediately from your dashboard, stopping fraud before it becomes a problem.

Q: How do virtual cards help with tax and accounting?
A: Each card’s transactions are tracked separately and can be exported to your accounting software, making tax time and budgeting much simpler.

Why Holdings? The SMB Advantage

Holdings is built for business owners who want more from their financial platform:

• No fees, no minimums: Keep more of your money working for you.

• High-yield APY: Earn up to 3.0% on your balances-while most banks offer, well, basically nothing.

• Integrated tools: Banking, accounting, and bookkeeping all in one place.

• Dedicated support: Real humans who understand your business, ready to help when you need it.

Get Started: Transform Your Business Payments Today

Ready to leave behind the headaches of traditional banking? With Holdings, you get virtual cards that put you in control-no hidden fees, no waiting, just secure, flexible business payments that work as hard as you do.

• Sign up for Holdings in minutes.

• Create your first virtual card and start saving time and money.

• Experience the peace of mind that comes with real-time tracking, advanced security, and a platform built for SMBs.

Your business hustle deserves banking that pays you back. Make your money work harder-and smarter-with Holdings virtual cards.