Ghost card credit cardAccounting
What is a ghost card credit card and how does it work?
A ghost card credit card is a one time use card to help better manage business expenses and reduce fraud. Fraud is at an all-time high, and it continues to increase. According to Javelin Strategy & Research, identity fraud rose by 8 percent in 2017, reaching losses of $16.8 billion. These acts of fraud have increasingly occurred online as more cards are being issued with EMV chips, which protect them during in-person transactions.
When credit and debit cards are used online, they are easy for thieves to intercept. Businesses conduct a substantial number of remote transactions and need to have protection from fraud. One tool that businesses can use is a ghost card.
Ghost credit cards are virtual numbers that are randomly generated and that represent the real credit cards but do not provide access to them. If a thief steals the ghost card number, it will not work. This makes a ghost credit card a great tool for businesses to use when they are making purchases online or over the telephone.
Who uses ghost card credit cards? Why do they use them?
Ghost card credit cards are used by larger businesses for several reasons. They help to prevent losses from internal and external thefts. They can be assigned to specific suppliers or vendors that are new or with which the companies conduct a high volume of transactions.
Businesses can assign individual ghost card numbers to different departments within their organizations so that the employees can purchase items that can be traced back to the departments. This can allow easy tracking of expenses company-wide by the department.
How to find the best ghost card credit cards
To find the best ghost card credit cards, you should conduct in-depth research into different offers and the companies that offer them. You should look for ghost cards that offer the lowest interest rates and that do not charge high annual fees. It is important for you to read the fine print so that you understand any fees that might be charged.
Business credit cards, including ghost cards, are not protected under the Card Act of 2009. This means that you will not have the same protections that consumers enjoy and may be charged substantial fees with little warning. It may be a better choice to consider ghost card debit cards instead of credit cards so that you can avoid interest charges, annual fees, and card fees.
How much control do I have when using a ghost card?
When you generate ghost cards, you should have substantial controls. Ghost credit cards allow you to choose the allowed merchant codes and expense categories for each number that you generate. You can also decide when the numbers will expire and when the cards will be active or turned off.
The cards should also integrate electronically with your accounting applications so that the transaction information can be imported automatically. This can help you to easily track the expenses and see exactly what is being spent at your company at all times.
What are the advantages and disadvantages of a ghost credit card?
A ghost credit card has several advantages and disadvantages. It is a much more secure method of making payments than other types of payments such as checks, traditional business credit cards, or ACH transfers. Ghost credit cards can also help to automate your payment processes and improve your expense tracking.
The disadvantages of ghost credit cards include the potential to incur high rates of interest and to be charged high annual fees. Purchases that are made with the ghost cards are charged to your credit card’s credit line, meaning that they add to your business’s debt.
How does a ghost credit card compare to a ghost debit card?
A ghost debit card is a better alternative for many companies. Like a ghost credit card, a ghost debit card number is virtual and doesn’t allow internal or external thieves to access your account or information.
When purchases are made using the ghost debit cards, the money is subtracted from your account instead of adding to the debt on a credit line. You do not have to submit to a credit check for a ghost debit card since it is not a credit card, and your purchases will not incur interest. The best ghost debit cards also do not charge high annual fees or transaction fees.
Ghost credit cards vs. P-cards
P-cards are other types of business cards that are popular. They can be virtual or plastic. P-cards are assigned to individual employees who can use them to make purchases for the company. The cards can be restricted to pre-approved purchases and to only be used at specific venues. P-cards cannot carry balances from month to month and must be paid in full.
Ghost credit cards allow businesses to expand P-card programs without having to give procurement cards to a large number of employees. Instead, entire departments of employees can use the numbers assigned to their departments so that the expenses can be tracked at the department level.
When can a ghost debit card be a worthy alternative to a ghost credit card?
Ghost debit cards can be a strong alternative to ghost credit cards for businesses that are averse to debt. They also can offer more features than ghost credit cards. Ghost debit cards can be turned on or off remotely 24 hours per day and seven days per week.
Businesses can see the spending that has occurred on their ghost debit cards in real time from their online dashboards or through their connections with the ghost card API. This can allow businesses to understand their business expenses and to identify problems that require attention.
How are businesses using ghost debit cards?
Businesses use ghost debit cards both horizontally and vertically. Ghost debit cards are used horizontally when they are assigned to individual departments. All of the employees in those departments can use the numbers to make preauthorized purchases. The transactions are charged back to the department so that they can be grouped by the departments.
Businesses also use ghost debit cards vertically. In this scenario, businesses might assign the cards to new vendors that they don’t trust. For example, if you are working with a new office equipment leasing company with which you have not built a relationship, you can assign the company a ghost debit card number. The company can charge the equipment leasing charges to the number, but if the company tries to charge anything else to the number, the attempt will be denied.
Ghost debit cards benefit the employees, too
While ghost debit cards offer numerous benefits to employers, they also benefit employees. When your company allows employees to charge purchases for your company to the ghost debit cards that you have assigned to their departments, they can avoid having to spend their own money to purchase items and to wait to be reimbursed.
Reimbursement processes can lead to resentment if the processing time takes too long. Some employees also might submit padded requests or requests that are outright fraudulent. By using ghost debit cards, you can get rid of the need for reimbursements completely and create a win-win situation for both you and your employees.
How do ghost card debit cards eliminate the hassle of dealing with paper receipts?
Ghost debit cards also help to eliminate the hassle of dealing with paper receipts. Employees sometimes forget to submit receipts in a timely manner, and you may find yourself trying to track down employees constantly to get them to submit receipts.
The ink on receipts can fade and become illegible, making them nearly useless during audits or tax preparation. With ghost debit cards, you can have your employees take pictures of the receipts, which can then be electronically submitted with the transaction data to your accounting software.
Ghost card debit cards give you robust controls
A great benefit of ghost debit cards are the expense controls that you can take advantage of. the cards allow you to manage the times that your employees can spend money and how much they can spend. You can also limit different cards to where they can be used.
Ghost debit cards can be turned off or on whenever you want, and you can restrict the venues where they can be used by choosing your preferred suppliers or vendors. You can also choose how much money to place on each card and limit the daily amounts that can be spent.
Where can I find a ghost card debit card?
To find a ghost card debit card, you can research ghost cards online. There are a number of business card companies that offer business debit and business debit ghost cards to companies. You should read reviews about the companies to make certain that you choose a company that is highly regarded and trustworthy. You might check such sites as Trustpilot and the Better Business Bureau.
After you have narrowed down your choices, compare the features of each card offer. You should also look at how easy it is to integrate the API with your existing applications and how fast you can generate numbers.
Bento expense management and controls
Bento for Business offers comprehensive expense controls and expense management tools. You can control where your employees are able to make purchases, limit how much can be spent using each ghost debit card, and choose when the cards will be active or turned off. You can also use these restrictions when you assign a ghost debit card to a supplier.
For example, you can give a ghost credit card number to your legal department that the attorneys can use to pay court filing fees for the legal paperwork that they have to file for your company. If one of the lawyers tries to use the number to order in pizza to the department, the purchase will be declined.
Why Bento for Business is a great choice
Bento for Business is a leading choice for businesses that are looking for savvy business Visa debit card solutions. The company offers extensive controls so that you can manage your expenses while preventing fraud.
Bento does not charge any annual fees, and small companies can order up to 10 cards for $29 per month. If you have a large company, you will not pay anything for your cards if you complete more than $20,000 in transactions with your cards. Since the cards are debit cards and not credit cards, you will not have to submit to a credit check, and you will not be charged any interest. Bento offers a free 60-day trial. Call today to learn more at 866.220.8455.