This article is relevant for: All subscribers.
These are the main advantages of single-use virtual cards over other payment delivery methods:
1. Faster
Single-use virtual cards can be processed immediately, 24/7—even on holidays or weekends*. (Exact timing of delivery of the virtual card depends on the payment method. Learn more about payment delivery timelines).
*IMPORTANT NOTE:
Vendor must have a point-of-sale system in order to process the payment.
2. Easier to reconcile
Single-use cards are sent with full remittance data - amount, payor and invoice details. All the information appears in the same email as the payment. This makes reconciliation faster and easier for you. You can automate reconciliation, for greater efficiency.
3. More secure
Single-use cards are more secure than other payment methods, because:
- You don’t need to share any banking information with your customers. You only fill out your details once- when you sign up.
- Each card is for a specific amount, with a 30-day expiration date and processed only for that amount. Single-use cards are MasterCards issued by JPMorgan Chase and adhere to strict security regulations and measures.
This table shows you all the key differences to consider:
|
Single-use virtual card |
Check |
ACH bank transfer |
Instant payment via debit card |
Speed |
Instantly available* 24/7. |
5-7 business days Plus time spent reconciling. |
Up to 3 business days Depending on the funding source. Boost subscribers get premium delivery of 2 business days |
Up to 30 minutes* Depending on the enabled issuers. |
Control |
Full remittance data Can be tracked at every step of the payment process.
|
Only see customer name & amount Cannot track payment during delivery. |
Only see customer name & amount Cannot track payment during delivery. |
Limited remittance data Settled in a one off transaction with sender name, address DOB and primary account number or reference number. |
Convenience |
No change to existing process Vendor receives the money through its existing merchant acquirer which offers extra services (reconciliation, sync with accounting platform, customer support, etc). |
Manual processing & reconciliation needed |
Manual processing & reconciliation needed |
Limit of $10,000 per transaction |
Security |
Highly secure for vendor No need to expose bank account details. For payor: one time usage card containing the exact invoice amount. |
Lost checks & check fraud |
Vendor bank details exposed Vendor’s bank details are exposed to the payor. |
Card details or bank details exposed Vendor’s card or bank details are exposed to the payor. |
Cost |
No additional cost Vendor pays card processing fees (depending on the vendor’s agreement with the card processor). |
$1.50 Melio mails a check to your vendor’s address. $1.50 fee, the first 2 every month are free.
|
$0.5 Go subscribers get 5 free payments per month Core subscribers get 20 free payments per month Boost subscribers get 50 free payments per month |
1% Fee per debit card transaction. |
*Delivery time is a result of the type of payment method used. This means that you should consider the processing time of the payment method and the processing time of the delivery method.
For example: Let's say the customer pays a bill from their bank account and the vendor signs up for a single-use virtual card. The payment will take 3 full days to process the ACH bank transfer and then will be delivered to the vendor as a single-use card immediately.