Virtual Credit Card Basics and Why Resellers Should Use Them

If you’re a reseller, managing your finances efficiently while protecting your personal information is crucial for long-term success. One tool that has gained tremendous popularity among resellers is the virtual credit card. Virtual Credit Cards not only simplify finances, but also enhance security and help you purchase more inventory to scalp with. Let’s break down what virtual credit cards are and how they can provide specific benefits for resellers.

A virtual credit card is a digital version of a physical credit card. It is linked to your existing credit card or bank account and generates a unique card number for each transaction or merchant.

While it acts just like a regular credit card during your purchases, its additional customization options make it a game-changer for online transactions.

Resellers often deal with a large volume of online purchases, exposing their credit card details to numerous platforms. With virtual card numbers, you can:

• Generate a new, unique card number for each transaction or merchant, keeping your actual card number private.
• Minimize the risk of fraud or unauthorized use of your credit card information.

Example scenario? If a website suffers a data breach, your virtual card number is useless to hackers since it was designed for a specific purchase or merchant.

Overspending can easily derail your profits, especially during busy seasons when stock replenishment is high. Virtual credit cards allow you to set spending limits for each card. Here’s how this helps you:

• Stay within your budget and maintain healthy financial discipline.
• Prevent unauthorized or accidental overcharges from merchants.

For a reseller managing multiple suppliers, spending limits keep your expenses predictable and manageable.

Have you encountered the “one item per household” rule when trying to buy limited-edition products? Virtual credit cards solve this frustration by:

• Allowing you to create multiple card numbers tied to the same credit account.
• Helping you bypass merchant restrictions that can block higher-volume purchasing.

With virtual credit cards, you retain the flexibility needed to secure stock without breaking merchant policies. No more awkward conversations with your loved ones about borrowing their credit cards and Venmoing them back.

Managing payments efficiently is essential for scaling your reseller business. Virtual credit cards simplify the process by:

• Automating recurring payments, such as supplier invoices or software subscriptions, with the ability to revoke access anytime.
• Providing detailed transaction histories that are easy to track and reconcile on one credit card, instead of juggling through several credit card’s statements.

You can generate an individual card for each business you buy from in seconds. No more juggling stacks of receipts or hunting down random charges on your statements. With virtual credit cards, staying on top of your finances become less of a pain.

Getting started with virtual credit cards is easier than you might think. Many major banks, financial institutions, and third-party services offer them as part of their payment solutions. Here’s what you need to do:

1. Sign up with a provider offering virtual cards linked to your credit card or bank account.
2. Set your preferences, such as spending limits, link your parent credit card, and transaction-specific details.
3. Start using virtual card numbers for your online purchases and reap the benefits!

• Citi Virtual Credit Cards
  Citi offers virtual credit cards as part of its corporate and business banking solutions. These cards are perfect for resellers who need advanced spending controls and robust integrations with their financial systems. Citi’s platform ensures high security and offers detailed expense tracking for simplified account reconciliation.
• Tradeshift Go
  Tradeshift specializes in virtual credit cards designed for business spending. Their platform allows for real-time transaction tracking and automated approval workflows, creating an efficient process for managing vendor payments or team expenses. For resellers managing multiple purchases, it’s a reliable choice.
• Privacy.com
  Privacy.com is an excellent option for independent or small-scale resellers. This user-friendly service lets you create virtual cards with specific spending limits for each merchant, ensuring your budget remains intact. Privacy.com is focused on security and offers ease of use, especially for those new to virtual credit cards.
• Revolut Business
  Revolut provides virtual credit cards as part of its business banking services, with added benefits like multi-currency support and transparent transaction tracking. This makes it an ideal choice for resellers managing international suppliers or working with various currencies. The cards integrate seamlessly with Revolut’s app, making expense management effortless.

Many of these are designed as business credit cards, so you’ll want to have at least an LLC set up for your reselling business. If you haven’t done that yet, we recommend Privacy VCCs to get started and moving onto another provider after establishing your business.