Virtual corporate credit cards vs. traditional corporate cards: Which is the best choice for cross-border businesses?
The Airwallex Editorial Team
With a globalised business environment, companies are increasingly managing payments to suppliers, software subscriptions, and digital advertising expenditures from around the world. However, the application process for traditional corporate credit cards is cumbersome and inflexible, often incurring high cross-border fees; rigid expense management leaves finance teams frustrated.
This article delves into the differences between virtual business credit cards and traditional corporate cards, helping you choose the most agile and cost-effective payment tool for cross-border operations. We will also explore how to leverage the Airwallex Corporate Credit Card to enhance financial efficiency for your business.
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What is a virtual corporate credit card?
A virtual corporate credit card is not a physical card, but a digital payment tool specifically designed for corporate expenditures. Each card has its own unique card number, security code, and expiration date, enabling payments to be made online or through mobile wallets.
The true value of a virtual corporate credit card lies in its centralised management capabilities. Business administrators can instantly generate, allocate, manage, and monitor each virtual card through a single platform, enhancing both financial control and operational efficiency. The Airwallex Credit Card exemplifies an effective virtual business credit card solution that allows companies to seamlessly manage expenses in seconds.
Virtual business credit cards vs. traditional corporate cards
Virtual and traditional corporate cards vary in cost, security management, efficiency, and global payments services. The table below summarises key differences between the two products:
| Traditional corporate cards | |
|---|---|---|
Cost efficiency | High fees (usually starting from 1.95%), with opaque upcharges for currency exchange rates | No cross-border fees with HKD and USD payments, no annual fees, and competitive currency exchange rates |
Security controls | High risk of loss and misuse of physical cards; difficult to set precise spending limits for different employees or projects | Set single-use, daily, monthly, or merchant limits for each card; cards can be instantly frozen or cancelled to minimise risk |
Operation efficiency | Lengthy application process taking weeks; manual expense checking required | Expenses are immediately sent to integrated accounting software such as Xero and QuickBooks |
Global payments | Linked to single-currency accounts, requiring currency exchange and leading to losses from uncontrollable rates. | Switch flexibly between HKD and USD credit for smooth business operations |
Cost efficiency: save on foreign exchange and exchange rates
When businesses need to pay overseas suppliers in foreign currencies or run ads on Google Ads in US dollars, traditional banks often charge international transaction fees of 1.95% or higher. Additionally, the exchange rates they offer are often opaque, leading to significant long-term profit erosion.
Airwallex is committed to providing a transparent and efficient payment experience. The Airwallex Corporate Credit Card incurs no international transaction fees on HKD and USD payments, and there are no monthly or annual fees.
Security control: oversight of corporate spending
If a physical card is lost or stolen, it poses a substantial security risk; businesses often face delays in blocking the card and obtaining a replacement. Furthermore, traditional cards provide limited control over spending permissions, leading to potential overspending or misuse.
Airwallex grants businesses complete control over each virtual card. Administrators can set:
Transaction limits: daily, monthly, or total spending limit
Merchant lock: restrict transactions to specific merchant categories or websites
Expirymate: can be set for one-time use or limited to project durations
Instant management: freeze or cancel cards immediately when employees leave or projects end, effectively mitigating risk. The absence of physical cards eliminates the risk of duplication or loss
Operational efficiency: streamlining applications and financial processes
The lengthy application process often takes weeks and requires substantial paperwork. At month-end, finance teams must invest considerable time collecting receipts and reconciling bills, leading to inefficiencies.
When new employees join or projects require corporate cards, virtual cards can be generated in just a few steps. Airwallex collects all transaction records in real-time, enabling finance teams to monitor expenses instantly. Integration with accounting software like Xero, QuickBooks, and NetSuite automates much of the financial process.
Global payment: effortlessly handling multi-currency transactions
Traditional corporate cards are typically tied to a single Hong Kong dollar account. Regardless of whether you are paying software fees in US dollars or supplier payments in euros, banks will forcibly settle the transactions in Hong Kong dollars. Businesses are unable to control the exchange rate and incur cross-border transaction fees, leading to additional expenses.
Airwallex facilitates genuine global payments, allowing company accounts to manage funds in various currencies, and pay in HKD or USD with the Airwallex Corporate Credit Card, avoiding losses from double conversion and streamlining your cross-border operations.
Key business applications of virtual corporate credit cards
Managing software subscriptions and expenses: Assign a dedicated virtual card for each software (e.g., Slack, Adobe, AWS) to facilitate expense tracking and allow for easy deactivation upon subscription cancellation.
Paying global digital advertising costs: Link a virtual card to advertising accounts like Google Ads and Meta Ads that settle in local currencies, saving on exchange costs while providing clear insights into monthly advertising expenditures.
Empowering employees for travel and business purchasing: Bid farewell to cumbersome cash advances and reimbursement processes. Modern companies like Bowtie issue virtual cards to employees for business trips with set budgets and validity periods, allowing for direct flight and hotel bookings while providing real-time transactional oversight.
Managing eCommerce platform operational expenses: eCommerce businesses can utilise virtual cards to make flexible payments to suppliers, logistics services, and platform fees from various countries, efficiently managing cash flow.
A good virtual corporate credit card allows businesses to manage various expenses with more ease and precision. From software subscriptions and global advertising to employee travel and eCommerce operating costs, companies can create dedicated virtual cards for different purposes. Setting budgets and validity periods to clearly track spending sources while reducing duplicate charges, exchange rate costs, and reimbursement burdens. With features like real-time transaction records, dedicated limits, and flexible deactivation, virtual corporate credit cards can significantly enhance corporate financial transparency and management efficiency.
How to enhance expense management efficiency through Airwallex
Achieve intelligent expense management with Airwallex in just four steps:
Create virtual or physical credit cards: Create cards for employees, projects, or one-time expenses, after your credit line is successfully granted.
Customise spending rules: Set spending limits, validity dates, and merchant types allowed for the card as needed, ensuring precise control over every transaction.
Track all expenditures in real time: All transactions made via virtual cards will be displayed in the unified management backend, enabling effective spend management for finance teams.
Automatically reconcile: By integrating with accounting software, all expense data will be automatically categorised and synced with the bookkeeping software, achieving a fully automated process, freeing finance teams from repetitive and manual tasks.
Why Airwallex is your ideal partner for global expansion
Traditional banks impose numerous fees on overseas transactions, leading to substantial costs at every turn. With the Airwallex Credit Card, you can make payments at interbank rates and eliminate international transaction fees.
Unlike traditional banks, which can take weeks to issue credit cards, Airwallex enables you to apply for virtual cards immediately after your credit line is granted. The platform ensures seamless synchronisation of all expenditure data with your accounting software, eliminating tedious manual reconciliation.
Choosing Airwallex means adopting a future-facing financial system that enhances efficiency, streamlining operations and improving workflows. Break free from the constraints of traditional banks. No matter where your business expands, Airwallex can help you operate with ease and reach new horizons.
Unlock business credit card to streamline your company’s finances
Frequently asked questions
How do virtual corporate credit cards differ from personal credit cards?
Personal credit cards are primarily designed for individual expenses, with limits and repayment responsibilities borne by the employee. In contrast, the Airwallex Corporate Credit Card is tailored for corporate expense management, integrating business-level control (such as limit and permission settings for each card) with the operational advantages of automation for intuitive spend management.
What are the potential downsides of virtual cards?
A limitation of virtual cards is that they are primarily used for online or mobile wallet transactions. In rare cases where a physical card is absolutely necessary, such as paying for a car rental deposit or making payments at certain offline merchants without internet access, challenges may arise. Airwallex understands that businesses have diverse payment needs. Therefore, we not only offer virtual cards but also physical Corporate Cards, affording businesses the flexibility to use both options as necessary, creating a complete payment ecosystem for all online and offline expenditures.Card is
Are there any annual or monthly fees for an Airwallex Credit Card?
No, there are no fees. Applying for and holding an Airwallex Corporate Credit Card is completely free; we do not charge any account opening fees or annual fees.
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The Airwallex Editorial Team
Airwallex’s Editorial Team is a global collective of business finance and fintech writers based in Australia, Asia, North America, and Europe. With deep expertise spanning finance, technology, payments, startups, and SMEs, the team collaborates closely with experts, including the Airwallex Product team and industry leaders to produce this content.
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