# Virtual cards in the travel industry
Author:  Pal Sinha, Barnali 
Author URL: https://financedigest.com/author/pal-sinha-barnali
Published: 2022-09-27
Category: FINANCE
Category URL: https://financedigest.com/category/finance
Meta Title: The Rise of Virtual Cards in the COVID-19 Era
Meta Description: Discover how virtual cards offer protection, ease of use, and automated reconciliation for businesses in the travel industry, with real-life examples from the
URL: https://financedigest.com/virtual-cards-in-the-travel-industryhtml

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Virtual cards are becoming increasingly popular after companies realised the advantages offered by the payment method during the COVID-19 pandemic.

The ability to make chargeback claims to refund money during the pandemic demonstrated how virtual cards offered protections that other payment methods lacked. As several airlines went into bankruptcy or cancelled flights, [virtual cards enabled online](https://www.financedigest.com/why-its-time-to-adapt-to-the-virtual-world-how-to-master-online-negotiations.html "Why it’s time to adapt to the virtual world: how to master online negotiations") travel agencies (OTAs) to file chargebacks for purchases used to reserve flights.

**_Dave Robinson, COO and Deputy CEO of Pax2pay comments on the evolution and usage of virtual cards in the [travel industry](https://www.financedigest.com/5-business-ideas-influencing-the-travel-industry.html "5 business ideas influencing the travel industry") as part of whitepaper published by The Payments Association and FIS_** _:_

“During the pandemic, we have never seen anything like it. When \[airline\] Monarch and \[travel agency\] Thomas Cook collapsed it was tough. However, nothing prepared us for what was coming down the line when it came to the [Covid pandemic](https://www.financedigest.com/exclusive-eu-to-move-away-from-emergency-phase-of-covid-pandemic-document.html "Exclusive-EU to move away from emergency phase of COVID pandemic – document"). We were literally processing thousands of chargebacks per day. The media was full of [reports over airlines not issuing refunds or giving credit](https://www.financedigest.com/credit-suisse-shares-hit-record-low-after-report-bank-is-looking-to-raise-cash.html "Credit Suisse shares hit record low after report bank is looking to raise cash") notes. With chargebacks, lots of [people got their money](https://www.financedigest.com/the-start-up-using-technology-to-help-the-20-million-people-in-britain-with-money-worries.html "The start-up using technology to help the 20 million people in Britain with money worries") back. Lots of companies now see the benefits, so they want to use virtual credit cards as their primary payment mechanism, [knowing the protection is there and they can use it if they need](https://www.financedigest.com/4-things-you-need-to-know-about-mortgages.html "4 Things you Need to Know About Mortgages") to if the airline fails to deliver the service.”

[Virtual cards work exactly like physical bank](https://www.financedigest.com/the-rise-of-virtual-agents-the-future-banking-experience.html "The rise of virtual agents: the future banking experience") cards, except they are used via a digital wallet. Secured by encryption, they allow customers to pay [online and in-store safely and securely](https://www.financedigest.com/5-steps-to-strengthening-your-online-financial-security.html "5 Steps to Strengthening Your Online Financial Security").

Using virtual cards was certainly advantageous during the [COVID-19 pandemic](https://www.financedigest.com/uk-sees-biggest-rise-in-foreign-workers-since-covid-19-pandemic.html "UK sees biggest rise in foreign workers since COVID-19 pandemic"). They offer effortless automated reconciliation and record matching, as well as the added [benefit of a lower carbon footprint by not using physical plastic credit](https://www.financedigest.com/benefits-of-a-good-credit-score.html "Benefits of a good credit score") cards.

**What are the barriers for virtual card users?**

If a company considers using virtual cards, it will need to update processes, rewrite company policies on card usage and expenditure, and integrate any new solution with their existing [expense management](https://www.financedigest.com/understanding-the-different-levels-of-maturity-in-travel-and-expense-management.html "Understanding the different levels of maturity in travel and expense management"), accounting or enterprise resource planning (ERP) portals.

Some suppliers may be reluctant to switch from tried and trusted payment methods, concerned about the merchant service charges associated with cards, or how they might impact settlement terms.

Concerns around integrating new solutions and costs disappear, however, because accessing better [payment processes, actionable data insights, and effortless compliance significantly improves the payment experience](https://www.financedigest.com/curating-a-fully-contactless-customer-experience-for-payments.html "Curating A Fully Contactless Customer Experience for Payments "). Thus, companies can hit the ground running with a virtual card [solution that meets their demands with the right guidance and expertise](https://www.financedigest.com/jaywing-releases-horizon-a-new-ifrs-9-modelling-solution-that-encapsulates-its-extensive-credit-risk-expertise.html "Jaywing releases Horizon, a new IFRS 9 modelling solution that encapsulates its extensive credit risk expertise") in place.

In fact, smaller businesses are far more likely to use additional financial solutions which further help them grow their [business if they have a good experience with virtual cards](https://www.financedigest.com/more-businesses-investing-in-assets-like-virtual-credit-cards.html "More Businesses Investing In Assets Like Virtual Credit Cards").

**Opportunities are endless**

Issuers, financial institutions and payment platform providers [must educate and encourage companies to seize the moment if they wish to make the most of these opportunities](https://www.financedigest.com/the-rise-of-finfluencers-presents-unique-opportunities-but-brands-must-proceed-with-caution.html "The rise of “Finfluencers” presents unique opportunities but brands must proceed with caution"). The tangible, immediate benefits of virtual cards, and allaying misplaced concerns over costs, solution [providers will allow companies](https://www.financedigest.com/is-it-important-to-provide-media-coverage-for-your-company.html "Is it Important To Provide Media Coverage For Your Company?") to deepen employee and supplier relationships, strengthen their foundations and position themselves as true innovators in the payments space.

[Teaming up with the right expertise](https://www.financedigest.com/hcss-education-bolsters-consultant-team-with-education-expertise.html "HCSS Education bolsters consultant team with education expertise") is crucial as it offers the quickest route to market. Collaboration also leverages complementary skills and strengths, and gives companies the smoothest [implementation of new solutions](https://www.financedigest.com/synapses-premier-partner-green-light-change-completes-successful-implementation-of-insight-solution-at-ramboll.html "Synapse’s Premier Partner, Green Light Change, Completes Successful Implementation of Insight Solution at Ramboll"), and the widest choice of value-added services.

While many companies across different [sectors see many advantages for digitising payment](https://www.financedigest.com/combatting-economic-uncertainty-in-2023-with-the-payments-sector-2.html "Combatting economic uncertainty in 2023 with the payments sector") and operational processes, virtual cards are gaining rapid traction. Virtual cards truly have a promising [future ahead](https://www.financedigest.com/the-future-of-fintech-forging-ahead-with-digital-transformation.html "The future of fintech: Forging ahead with digital transformation").

To learn more and download the whitepaper from The Payments Association, on the topic of virtual cards, visit: [https://thepaymentsassociation.org/whitepaper/virtual-cards-how-companies-can-unlock-the-5-trillion-bionic-b2b-opportunity/](https://thepaymentsassociation.org/whitepaper/virtual-cards-how-companies-can-unlock-the-5-trillion-bionic-b2b-opportunity/)

**_About the author:_**

_Anjana Haines is the Head of Content at The [Payments Association](https://www.financedigest.com/avalon-solutions-group-collaborates-with-home-care-association-of-america-to-bring-mobile-payments-to-the-industry.html "Avalon Solutions Group Collaborates with Home Care Association of America to Bring Mobile Payments to the Industry"). She leads the [organisation’s digital content strategy and events](https://www.financedigest.com/6-steps-to-organising-an-introvert-friendly-networking-event.html "6 Steps to organising an introvert-friendly networking event ")._

_Identified as a high potential diverse leader, Anjana has over a decade of experience in legal and financial [B2B](https://www.financedigest.com/why-embedded-finance-will-be-integral-in-the-future-of-b2b-marketplaces.html "Why embedded finance will be integral in the future of B2B Marketplaces") publishing._

_Through a range of articles, podcasts, videos, webinars, face-to-face events and much more, Anjana delivers content to payments professional that offers [market insights](https://www.financedigest.com/heightened-interest-in-global-cuisines-to-brighten-the-expansion-prospects-of-herbs-and-spices-manufacturers-industry-predicted-to-rise-at-3-6-cagr-future-market-insights-inc.html "Heightened Interest in Global Cuisines to Brighten the Expansion Prospects of Herbs and Spices Manufacturers: Industry Predicted to Rise at 3.6% CAGR | Future Market Insights Inc. ") and strategic guides._


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