In some cases, the payment delivery method may change to a single-use virtual card. A single-use virtual card is a fast, secure, and efficient virtual credit card that has become a common payment method for vendors.
This article explains when this change happens and why.
The payment delivery method may be changed to a single-use virtual card in the following cases:
- The vendor has chosen a single-use virtual card as their default payment delivery method.
- The invoice file you uploaded includes a link to the vendor’s online payment portal, where the vendor accepts cards, with no additional fee to you.
❗Important:
- Melio doesn’t charge any fees for a single-use virtual card as a delivery method or for receiving payments via a single-use card.
- For the vendors, a POS terminal fee may apply (depending on the vendor’s agreement with the card processor).
Vendor has opted to receive payments via a virtual card
In Melio, vendors can choose to receive payment via single-use virtual cards during a call with our team. They likely signed up to receive single-use virtual cards because they're faster and more secure.
How it works
- In this case, all the payments to these vendors will be sent via virtual cards.
- The card is delivered via email, and the vendor can ONLY process it with a credit card processing system (POS) or terminal, as they would with any other credit or debit card payment.
- This only affects how your vendor receives payment. You don’t need to take any action. If your vendor wants to accept payment in a different way, they can contact our support team.
The uploaded invoice has a link to the vendor’s online payment portal
It is possible that the delivery method can be changed from ACH transfer to a single-use virtual card if the payment you are making meets all the parameters below:
- Your payment method is a bank account.
- The selected delivery method is ACH transfer.
- You have uploaded an invoice file during the payment scheduling process.
How It Works
1 - You schedule a payment to a vendor and attach the invoice.
2 - Your payment method is a bank account, and the selected delivery method is ACH transfer.
3 - To simplify your vendors’ payment acceptance process, when you upload an invoice to our platform, we automatically check if it contains a link to the vendor’s online payment portal, and if they accept card payments online with no additional fees to you.
4 - If the invoice qualifies for card payment, that individual payment is delivered via a single-use virtual card.
The vendor requires no action. The payment will be completed automatically, and they’ll get a confirmation email.
If it doesn’t qualify for the card payment, it will be delivered via ACH transfer as usual, with no delay to the original timeline.
5 - The vendor's default delivery method remains unchanged for future payments.
What the payor sees
- In the Payment and bill details window, the delivery method will display as a single-use virtual card.
- Hover over the
icon to see an explanation of the change.
What the vendor sees
The vendor will receive a payment confirmation email only.
For this type of payment, card details are not sent to the vendor; the payment is processed automatically via your vendor’s online payment portal, unlike regular virtual card payments.
Why does Melio change the delivery method to a single-use virtual card?
In the case described above, Melio changes the delivery method to a single-use virtual card to provide our users with a superior payment experience, prioritizing speed, security, and efficiency.
This delivery method is:
- No additional cost: The payor incurs no fees.
- Secure for the vendor: Virtual cards are processed without the need to share bank account details; cards are single-use for exact amounts.
- Efficient: Automated 24/7 processing, independent of banking hours.
- Automatic processing: Virtual cards paid at your vendors’ portal are processed automatically without requiring any manual work from you or your vendor.
- Easier to reconcile: Full remittance data is included - amount, payor, and invoice details.
Learn more about all the advantages and benefits of using a single-use virtual card compared to other delivery methods.
What About Future Payments?
- Future payments to the same vendor will default to the original delivery method.
- If a new invoice is uploaded or synced for a future payment, the system will rerun the same automatic check and, if eligible, change the delivery method to a virtual card.
- If you don’t want this change to happen in the future, please contact our support team.