Expense Management : Virtual Payment

In this new era, people feel to go cashless which is safe and more flexible. Imagine an employee going on a business trip must maintain all the records of the trip such as the bills of cabs, flights, hotels, restaurants etc, and later the employee can reimburse the bills once he/she is back from the trip. There can be a lot of human errors in the process, the employee might lose his/her bills or there are chances that the employee spends more than the expected budget. Travelling is one of the important elements in the success of any business, with due importance companies overshoots the travel budget. If we look at the breakdown of the business trip 30% of the budget is consumed by flights, 40% by hotels, 10% by cabs and 20% of other expenses. Companies cannot compromise on the comfort of the employee going on a business trip but on the other hand they also look to curb the expenses on the business trip. Keeping this in view one of the new trends that has emerged in the travel industry is a virtual payment system.  

Using virtual payment system the companies can “manage the spends not expenses” by limiting the spending value on a business trip. On the other hand, it also eliminates the hassle of maintaining the records, which minimize the human intervention and reduces time without any errors.

Though day-to-day travel expenses are increasing in almost all the industries, it comes under the second most controlled expense category. But what’s behind the rise of virtual payments? Here are three aspects of virtual payments that make it an excellent solution for your travel program and travellers.

1. Gain Control, Increase Compliance
For travel managers trying to manage business travel expenses, virtual card numbers (VCNs) may be an incredibly helpful asset. With the creation of every new virtual number, which is generated digitally at the purpose of sale, managers can stipulate specifically which expenses the card may be used for, as well as how much may be spent. For instance, single virtual payment numbers may be created specifically for ticket bookings, permitting managers to ensure that their travellers are complying with the company’s travel policy. With the assistance of single-use virtual payments, travel managers can ensure that the policies they need in place serve their final purpose.

2. Protect Your Payment
In addition to increased compliance, virtual payments could improve security. Travel managers can set limits not just on where, but also when, every virtual card numbers (VCNs) can be used. In addition, misuse can be restricted, and the threat of data theft may be greatly lessened by the fact that these VCNs are single use meaning that the number expires once it’s used for its valid corporate travel expense.

3. A Streamlined System For Visibility and Reconciliation
When an organization depends on many payment methods to book air travel, taking care of multiple bill payments and completely different billing processes are often an enormous time sink for travel managers and their travellers. The utilization of virtual payments can eliminate of these extraneous sources of data and contour expense management to deliver vital travel data all in one place. This implies managers can increase program visibility whereas saving their travellers time too with simple reconciliation.

So, this can be an ideal time for the companies to avoid credit term payment for their business travel booking and adopt the virtual payment along with travel technology tools like TrackMyTkt to get more benefits and make business travel hassle free and cost efficient.

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