Reduce Fraud

How Virtual Cards reduce a banks card fraud exposure

A Virtual Card is only valid for a short window of time, the spend allowance is limited, and restricted to a particular merchant category. Under these circumstances, fraudulent charges are highly unlikely. For more information about how the use of Virtual Cards reduces fraud, read below:

The 30 billion dollar problem

According to Nilson, global card fraud hit  $31.310 trillion in total volume in  2016. That's a huge problem for the world of banking. From a business perspective, it can be an even bigger problem not simply affecting cash flow; fraud on a corporate scale can have severe effects on share value. Here are 4 ways Virtual Cards help reduce that problem:

1. Only valid for a defined merchant category

When the Conferma system generates a Virtual Card for a bank's client, it is only authorised for a single merchant category such as hotel or airline. It therefore cannot be used in any other merchant category.

2. Only usable within a certain date range

The Conferma powered Virtual Card is only valid within specific days. For example if it's being used by a bank client for a hotel booking those dates would be between check-in and check-out or if a client is using a Virtual Card to buy office stationery it may only be valid for a single day. Use of that card on any date outside the defined parameters is not possible.

3. Only valid for a certain value

That Virtual Card is only valid for maximum spend value. Therefore, if the stationery purchase is signed off at $120, the VCN will only be valid for up to $120 spend; if a hotel is booked at €200 per night for two nights plus expenses, the VCN may be valid for a spend up to €500.

4. Internal authorisation required

The Conferma system can set any spend (or spend above a certain level) to be authorised by a line manager or senior employee. That authorisation can be viewed, approved and completed on mobile as well as on desktop, enabling swift decisions.