Page 12 - CTM Travel Matters magazine
P. 12
| TRAVEL TRENDS
HOW TO BEAT
THE FRAUDSTERS
Virtual credit cards may be the answer
for many corporates to the challenge
of finding a secure payment method
for their infrequent travellers
Corporates have often been challenged Acceptance levels UNPICKING THE NEW
to find a secure payment method for are the main challenge today. TECHNOLOGY
their temporary workforce or infrequent A business traveller may turn up at a
travellers. Not keen to trust them with hotel and the receptionist may never THE PROS
a company corporate card or a cash have experienced handling a booking
advance, there really have been no good using a virtual card rather than a • Perfect payment vehicle for
alternatives, until now. physical one and will insist on seeing infrequent/temporary employees/
some form of ID and/or confirmation. contractors
The virtual credit card (VCC) is one It may entail completing some manual
solution currently filtering into the processes before the key is handed over. • Tight spending controls - by time,
marketplace. A VCC is just like a plastic type of merchant and amount –
card in that it has an expiration date and Their use certainly entails educating reduces the risk of fraud
CVV number. They are offered by banks your supply chain and travellers so that
with multinational card programmes they all know that these transactions THE CONS
and can be issued on American Express, need to be processed as ‘card not
MasterCard and Visa. present’ just like suppliers do with • Acceptance levels in the supply
telephone and online bookings. chain is an issue, as with any new
A VCC can be set up for a specific technology
booking by matching the payment from CTM already has customers using
the bank to the original booking data VCCs and is entirely geared up for • More education in the supply chain
from the TMC. It supplies a unique ID for these payments in terms of alignment is required, explaining that VCCs
that booking and payment against one with GDSs, integration with our existing need to be processed as ‘card not
purchase and enables the corporate to booking processes, data collection and present’
capture spend data accurately. reconciliation. We are, as always, in the
vanguard of any new technology.
Virtual cards reduce the risk of fraud
because that unique ID is generated Acceptance is the key stumbling
electronically for a particular amount, block currently, and this will improve as
a specified time and type of supplier. more use VCCs and they become more
Fraudulent charges are highly unlikely familiar in the supply chain.
with such tight spending controls, as is
maverick spend, thus helping to improve Continued frustrations with attempted
compliance. or actual payment fraud with corporate
credit cards, stolen cards and the
Payment automation adds really useful labour-intensive process of corporate
corporate information to every VCC card data reconciliation will probably
transaction such as employee number, drive the trend towards VCCs.
cost centre and project code, without
the need to chase your employee for
them.
VCCs are a good option with all
sorts of employees who aren’t frequent
travellers. It may be new employees,
junior level staff, contractors or job
applicants. A VCC will avoid cash
advances and reduce the number of
complicated invoicing procedures.
It all sounds too good to be true
and, in some ways, it is. Like any new
technology, there are teething problems
and this technology is no different.
www.travelctm.co.uk
HOW TO BEAT
THE FRAUDSTERS
Virtual credit cards may be the answer
for many corporates to the challenge
of finding a secure payment method
for their infrequent travellers
Corporates have often been challenged Acceptance levels UNPICKING THE NEW
to find a secure payment method for are the main challenge today. TECHNOLOGY
their temporary workforce or infrequent A business traveller may turn up at a
travellers. Not keen to trust them with hotel and the receptionist may never THE PROS
a company corporate card or a cash have experienced handling a booking
advance, there really have been no good using a virtual card rather than a • Perfect payment vehicle for
alternatives, until now. physical one and will insist on seeing infrequent/temporary employees/
some form of ID and/or confirmation. contractors
The virtual credit card (VCC) is one It may entail completing some manual
solution currently filtering into the processes before the key is handed over. • Tight spending controls - by time,
marketplace. A VCC is just like a plastic type of merchant and amount –
card in that it has an expiration date and Their use certainly entails educating reduces the risk of fraud
CVV number. They are offered by banks your supply chain and travellers so that
with multinational card programmes they all know that these transactions THE CONS
and can be issued on American Express, need to be processed as ‘card not
MasterCard and Visa. present’ just like suppliers do with • Acceptance levels in the supply
telephone and online bookings. chain is an issue, as with any new
A VCC can be set up for a specific technology
booking by matching the payment from CTM already has customers using
the bank to the original booking data VCCs and is entirely geared up for • More education in the supply chain
from the TMC. It supplies a unique ID for these payments in terms of alignment is required, explaining that VCCs
that booking and payment against one with GDSs, integration with our existing need to be processed as ‘card not
purchase and enables the corporate to booking processes, data collection and present’
capture spend data accurately. reconciliation. We are, as always, in the
vanguard of any new technology.
Virtual cards reduce the risk of fraud
because that unique ID is generated Acceptance is the key stumbling
electronically for a particular amount, block currently, and this will improve as
a specified time and type of supplier. more use VCCs and they become more
Fraudulent charges are highly unlikely familiar in the supply chain.
with such tight spending controls, as is
maverick spend, thus helping to improve Continued frustrations with attempted
compliance. or actual payment fraud with corporate
credit cards, stolen cards and the
Payment automation adds really useful labour-intensive process of corporate
corporate information to every VCC card data reconciliation will probably
transaction such as employee number, drive the trend towards VCCs.
cost centre and project code, without
the need to chase your employee for
them.
VCCs are a good option with all
sorts of employees who aren’t frequent
travellers. It may be new employees,
junior level staff, contractors or job
applicants. A VCC will avoid cash
advances and reduce the number of
complicated invoicing procedures.
It all sounds too good to be true
and, in some ways, it is. Like any new
technology, there are teething problems
and this technology is no different.
www.travelctm.co.uk
