Discover: Virtual Credit Cards for Canadian Businesses

In today’s digital age, online shopping has become the norm, but with convenience comes the risk of exposing your sensitive financial information. That’s where virtual credit cards come in – a secure and flexible payment solution designed for the modern consumer. If you’re a Canadian business looking for a way to shop online with peace of mind, a virtual credit card might be just what you need.

Virtual credit cards are a game-changer when it comes to protecting your financial data and giving you more control over your online transactions like subscriptions and vendor payments. In this article, we’ll dive into the world of virtual credit cards, exploring what they are, how they work, and the numerous benefits they offer. By the end, you’ll have a clear understanding of why virtual credit cards are a smart choice for anyone who values security and convenience when making purchases online.

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Canada’s only modern USD and CAD Visa and Mastercard virtual cards solution for businesses — plus cashback and average savings of 7%.

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What is a virtual credit card?

A virtual credit card is a randomly generated 16-digit number that is linked to your existing credit card account. This means you can shop online without exposing your actual credit card details, adding an extra layer of security to your transactions. Despite being a separate number, transactions made with a virtual card will still appear on your regular credit card statement, making it easy to track your spending.

Quick history of virtual credit cards for business expenses

The history of virtual cards for business expenses dates back to the early 2000s, when they were first introduced as a more secure alternative to physical cards. Initially, virtual cards were used primarily for consumer online purchases, offering single-use numbers to protect against fraud. However, their application quickly expanded into business environments as companies recognized their potential for managing expenses more securely and efficiently. By generating unique card numbers for specific transactions or users, virtual cards help reduce the risk of fraud and enable more control over employee spending. The rise of e-commerce and digital payments accelerated their adoption, especially in industries like travel and insurance ​(Visa Navigate).

In the 2010s, fintech innovations and the increasing demand for automated, digital financial tools further boosted virtual card use in business-to-business (B2B) payments. Companies began leveraging virtual cards to streamline expense management, reduce administrative overhead, and track spending in real time. The COVID-19 pandemic further accelerated this trend as businesses sought contactless and remote payment solutions​ (CustomerThink)​.

Today, virtual cards are an integral part of corporate expense management, offering enhanced security, flexibility, and operational efficiency​ (CustomerThink)​ .

How do virtual credit cards work?

When you request a virtual card number, your issuer generates a unique 16-digit number, expiration date, and CVV that is tied to your account. You can then use this virtual card number to make purchases online or over the phone, without revealing your physical card’s information. Depending on your needs, some virtual card numbers are for single use, while others can be used for multiple transactions. To learn more about the different types of virtual cards, check out this article on what are virtual cards?

Virtual vs. Physical Cards

Understand the differences of virtual and physical cards for your business.

Benefits of using a virtual credit card

• Enhanced security: Virtual cards protect against fraud by keeping your actual card number private, reducing the risk of your information falling into the wrong hands.
• Customizable controls: Many issuers allow you to set spending limits or expiration dates on virtual cards, giving you greater control over your online transactions.
• Convenience: Generate virtual cards instantly online or in your issuer’s mobile app, without the hassle of waiting for a physical card to arrive in the mail.
• Privacy: Using virtual cards helps limit data tracking by advertisers when shopping online, as each virtual number is unique and not directly tied to your personal information.

How to get a virtual credit card in Canada?

To get started with virtual credit cards, check if your current credit card issuer offers this feature. If your card offers it, simply log into your online account or mobile app to generate a virtual number. Unfortunately, there are very few options to get access to Virtual Cards in Canada. Good news is that Float in built in Canada and offers best-in-class virtual cards solution for businesses.

Instantly Issue Unlimited Virtual Cards with Float

Canada’s only modern USD and CAD Visa and Mastercard virtual cards solution for businesses — plus cashback and average savings of 7%.

Learn More

Get Started for Free

Using your virtual credit card

Using a virtual credit card is just like using your regular card for online purchases. Simply shop online as usual, inputting your virtual card number, expiration, and CVV at checkout instead of your physical card details. If you have recurring payments, you may want to generate a virtual card that doesn’t expire after a single use. Keep in mind that virtual cards won’t work for in-person purchases or anything requiring your physical card, like picking up tickets or checking into a hotel. However, if you need to make a return, the refund will still be credited back to your account even if you used a single-use virtual number.

Virtual cards vs. digital wallets

Both virtual cards and digital wallets help keep your actual card number private during transactions, but they work in slightly different ways. Digital wallets like Apple Pay and Google Pay allow you to make payments in-person or online via your mobile device, while virtual card numbers are typically for online use only. However, you can often store your virtual credit card in your digital wallet for easy access and added security when shopping on your phone or computer.

“Float’s virtual cards continue to give our team the flexibility and autonomy they need and deserve.”

Andy O’Reilly
Senior Manager of Finance & Technology

Choosing the right corporate virtual card in Canada — Float

When deciding on a credit card with virtual card capabilities, consider factors like rewards, benefits, and float features in addition to the ease of generating virtual numbers. Look for a card and issuer that makes it simple to create virtual cards, with options to set controls like spending limits and expiration dates. If you’re a business owner, choosing a corporate card with robust virtual card features can help manage employee spending and prevent fraud.

Virtual credit cards offer a secure and convenient way to shop online, giving you greater control over your transactions and peace of mind knowing your sensitive information is protected. Join the growing number of savvy consumers and businesses who trust us to provide innovative payment solutions tailored to their needs.

Frequently Asked Questions

How Do Float’s Virtual Cards Work?

Float’s virtual cards are issued by Visa for CAD cards and Mastercard for USD spending. They offer direct 1% cashback on all categories after the first 25K of monthly spend. Float operates on a Charge Card or Prepaid funding model. Prepaid model offers 4% interest on all deposits with no cash lockups with account opening in < 24 hours.

What are Virtual Cards?

Virtual cards are the same as a traditional physical card with the exception that the card number for these cards is presented digitally. You can create and cancel virtual cards for any purchase and set custom limits on a per-card level to avoid overcharges from the vendors. Float’s virtual cards are excellent for recurring subscription expenses, digital ads spend, and one-off small employee purchases as they can be added into Apple or Android Wallet and deleted once the purchase is complete. Float’s Essentials plan offers unlimited virtual cards and <10 minutes account application time.

How Do I Apply for a Float Corporate Card?

Signing up for Float takes less than 10 minutes and can be done fully online. Float does not require any personal guarantees and does not perform credit checks to open your account. Ready to get started on our Free Essentials plan? Sing-up today.

How much does Float cost?

Float is Free to use on our Essentials plan, where you will be able to issue unlimited virtual CAD/USD cards, earn 4% interest on deposits, reimburse employees and pay vendor bills. If you need more sophisticated functionality, like over 20 physical cards, Netsuite integration, or an API solution, you will have to consider our paid Professional and Enterprise plans.

Does Float offer Credit Card Limit?

Float offers Charge Card and Prepaid funding models. You can apply (*Conditions apply. Book a demo to learn more) for unsecured, 30-day credit terms with high limits up to $1M, no credit checks and personal guarantees. Prepaid model offers 4% interest on all deposits with no cash lockups with account opening in < 24 hours.

How does Float help businesses save 7% of their spend?

Unlike traditional cards that get you to spend more, Float is the only corporate card in the world that helps businesses spend less. Through a combination of financial rewards like our 1% cashback, 4% interest on deposits, no FX fees with our USD cards and time savings of at least 8 hours per employee Float’s customers on average save 7% on their spend.

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