A virtual card is a card number issued in digital form, without a physical plastic card, used for online or in app payments and often with controls such as spending limits.
General information, not financial, legal, or tax advice. Verify current terms and eligibility with the provider before applying.
How a virtual card works
A virtual card is a payment card issued in digital form, with its own card number, expiry date, and security code, but no physical plastic. It draws on the same underlying account or credit line as a normal business card and can be used wherever that card number is accepted online or through a mobile wallet. Because the card is created in software, a business can usually generate one instantly, set rules on it, and freeze or delete it at any time. Some virtual cards are single use and expire after one transaction, while others are ongoing, current as of 20 September 2025.
Spending controls and security
A common reason businesses use virtual cards is control. A virtual card can be given its own spending limit, restricted to a particular supplier or type of purchase, or set to expire after a single transaction or a fixed period. This makes it possible to assign a separate card to each employee, project, or subscription and to see exactly what each one spends. It can also reduce risk: because the virtual number is separate from the main card and can be cancelled on its own, a compromised virtual card can be shut down without reissuing the primary account card.
Why it matters to a business
Virtual cards can make business spending easier to manage and track. Issuing a separate card per employee, supplier, or recurring subscription gives clearer records and simpler expense management, since each card's activity is itemised on its own. The ability to set limits and cancel a card instantly helps a business stay in control of who can spend and how much. Availability, the number of virtual cards allowed, and any fees vary by provider and account, so a business should confirm what is offered and the current terms with the provider.
Frequently asked questions
What is a virtual card?
How is a virtual card different from a physical card?
Can a business set spending limits on a virtual card?
Are virtual cards more secure?
Definitions, fees, features, and eligibility change and vary by region. This page was last reviewed on 20 September 2025. Confirm current terms with the provider before applying.