How to Accept Virtual Credit Card Payments

To accept virtual credit card payments, you need to treat them like standard credit card transactions but with a few extra steps for accuracy. A payer, often a corporate client, will send you a unique 16-digit card number, expiration date, and CVV tied to a specific invoice. You then manually enter this information into your POS or merchant portal, process it like a regular payment, and record it in your accounting system.

Understand How Virtual Credit Card Payments Work

Before you start accepting virtual card payments, it’s essential to know what they are and how they differ from traditional credit cards.

A virtual credit card typically:

• Comes with a unique 16-digit number, expiration date, and CVV.
• Is usually single-use or limited to a specific vendor/transaction.
• Is sent by the payer’s bank or accounts payable system.

Example: A large insurance company reimbursing you for services might send a virtual credit card number via secure email or portal instead of issuing a paper check. You’ll process this payment like a standard credit card transaction.

Confirm That Your Payment Processor Accepts Virtual Credit Cards

Not every payment processor or point-of-sale (POS) system supports VCCs. Before trying to accept one, check with your provider to confirm compatibility.

Questions to ask your provider:

• Can virtual credit cards be processed as standard credit cards?
• Are there any additional fees or limits?
• How long does it take for funds to settle?

If your current processor doesn’t support VCCs, you’ll need to switch to one that does, otherwise you risk rejecting payments from larger corporate clients.

Process the Virtual Credit Card Payment

Once you’ve confirmed your processor can handle virtual cards, you can process the payment just like a normal credit card.

Here’s how:

1. Log in to your payment terminal, POS, or online merchant portal.
2. Enter the 16-digit card number, expiration date, and CVV code provided by the payer.
3. Enter the payment amount exactly as stated.
4. Submit the transaction for authorization.
5. Wait for confirmation of approval.

Pro tip: Always double-check that the card number and amount match the information provided in the virtual card notification. A mismatch could result in a failed payment.

Record the Payment in Your Accounting System

After processing the payment, make sure you record it properly in your accounting software for accurate bookkeeping.

For example:

• Invoices should be marked as Paid by Virtual Credit Card for clear tracking.
• Apply the payment against the correct customer or vendor account.
• Save any remittance advice or email confirmation as documentation.

This ensures your books stay accurate and you can easily trace which payments came through virtual cards.

Verify Settlement in Your Bank Account

Even though the transaction may show as “approved,” you need to confirm that the funds actually settle into your bank account.

Best practices:

• Reconcile deposits daily or weekly.
• Match virtual credit card payments with corresponding invoices.
• Report discrepancies immediately to your processor or the payer’s AP department.

Example: If you processed a $1,200 virtual card but only see $1,170 in your bank, check whether the difference is due to transaction fees.

Communicate with Your Customers or Vendors

When dealing with virtual credit cards, clear communication is key. Let your customers or vendors know you accept them and confirm payment details.

Tips:

• Include “We accept virtual credit card payments” in your invoices or payment terms.
• Confirm receipt after processing to reassure clients.
• Maintain strong relationships by being transparent about any fees or policies.

Bonus Tip: Streamline Payments with DepositFix

If you want to make virtual credit card payments even easier, DepositFix can help. DepositFix integrates directly with your payment workflows, allowing you to securely process digital payments, including virtual credit cards, without hassle. With features like automated reconciliation, customer payment tracking, and flexible invoicing, you reduce manual work and get paid faster.