Virtual Cards Are Growing Up: Why Your ePayables Strategy Can't Stay Static
Virtual card technology has matured far beyond basic AP automation. Learn why your ePayables strategy needs a refresh and where the biggest opportunities lie for forward-thinking organizations.
When virtual cards first gained traction in corporate payments, the value proposition was straightforward: replace paper checks, earn rebates, and add a layer of control. For treasury teams, it was a no-brainer — at least for the accounts payable use cases where supplier acceptance was high.
But that was then. Virtual card technology has matured considerably, and with that maturity has come a far broader range of use cases — and a more complex set of strategic decisions for organizations that want to maximize the value of their ePayables programs.
The question is no longer whether to use virtual cards. The question is how to use them in ways your competitors haven't thought of yet.
Beyond Straight-Through AP: New Frontiers for Virtual Cards
Traditional virtual card programs focus on supplier payments — issuing a unique, single-use card number for each transaction to reduce fraud and earn interchange rebates. That model still works and still generates value. But leading organizations are now applying virtual card logic to a much wider set of workflows.
- T&E and employee spend: moving beyond corporate card programs to more granular, purpose-built virtual card issuance for individual expenses
- Procurement controls: embedding virtual card issuance directly into procurement workflows so that spend authorization and payment happen in a single motion
- Insurance and claims disbursements: issuing virtual cards for claim payments to reduce fraud and accelerate settlement timelines
- Healthcare and patient billing: applying virtual card logic to provider payments and patient refunds
- Government disbursements: replacing paper checks for benefits, rebates, and vendor payments at the agency level
The Supplier Acceptance Problem Has Not Gone Away
For all the innovation happening in virtual card use cases, the supplier acceptance challenge remains the most persistent friction point in ePayables programs. Many suppliers — particularly small and mid-size businesses — still push back on virtual card payments, citing processing fees and administrative burden.
That dynamic is shifting, slowly. Networks and processors have invested in straight-through processing capabilities that reduce the manual effort for suppliers. And the rebate economics for buyers have become a more visible part of the working capital conversation, especially as interest rates have normalized.
But organizations that assume supplier acceptance will solve itself are leaving money on the table. A proactive supplier enablement strategy — with clear communication, onboarding support, and alternative payment options for holdouts — is what separates programs that hit 30% card capture from those that hit 70%.
> Supplier enablement isn't a one-time project. It's an ongoing discipline. The programs that treat it as such consistently outperform those that don't.
What Modern ePayables Providers Look Like
The ePayables market has changed significantly over the past several years. Legacy providers with outdated technology stacks are competing — and often losing — to newer entrants that offer modern APIs, real-time issuance, and flexible integration with ERP and procurement platforms.
Evaluating ePayables providers today should involve a far more rigorous assessment than it did five years ago. Beyond rebate rates and supplier networks, organizations should be evaluating:
- API architecture and real-time issuance capabilities
- Integration depth with major ERP platforms
- Data and reporting capabilities at the transaction level
- Fraud controls and card controls (spend limits, merchant category restrictions, expiration logic)
- The provider's roadmap for real-time payment integration alongside virtual cards
The Intersection of Virtual Cards and Real-Time Payments
One of the more interesting strategic questions in ePayables right now is how virtual cards and real-time payment rails will coexist — and compete — for the same payment flows.
For buyers, virtual cards generate rebate revenue. For suppliers, real-time payments offer immediacy without processing fees. These interests don't always align. The organizations that navigate this tension thoughtfully — offering multiple payment options while protecting their rebate economics — will have a meaningful advantage.
Questions to Bring to Your Next ePayables Review
- What percentage of our addressable AP spend is currently on virtual card, and what is blocking the rest?
- Are we using the full range of virtual card controls available to us, or treating them as a basic check replacement?
- Has our provider's technology platform kept pace with the market, or is it time to benchmark alternatives?
- How are we thinking about virtual cards alongside FedNow and RTP as supplier payment options?
The Bottom Line
Virtual card programs that were built five years ago and haven't been revisited are almost certainly underperforming their potential. The technology has moved, the market has moved, and supplier expectations are shifting. A thoughtful review — of your provider, your capture rate, and your use case roadmap — is likely to surface significant opportunity.
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Michele Laurin is the founder of Laurin Consulting LLC, a boutique advisory firm specializing in card product strategy, ePayables, and digital payments transformation. Reach out at [www.lcpaymentsllc.com](https://www.lcpaymentsllc.com).