Virtual Card
A virtual card is a single-use or limited-use card number generated for a specific payment, enabling B2B payments to be made via the card network rails with full interchange economics without issuing a physical card.
Virtual cards are the primary mechanism through which AP automation and B2B payments platforms generate interchange revenue. Instead of issuing a physical card, the platform generates a unique 16-digit card number, expiration date, and CVV for a specific supplier payment — often with spending controls (exact amount, single use, expiration date).
Virtual card economics: when a supplier processes a virtual card payment, interchange flows back through the card network to the issuing bank (or BaaS provider) and then to the platform. B2B virtual card interchange rates are typically 100–250 basis points of transaction value — significantly higher than ACH fees.
Virtual card adoption requires supplier enablement — suppliers must be willing and able to accept card payments through their accounts receivable workflows. STP (straight-through processing) rates measure what percentage of virtual card payments process automatically without manual intervention. Top programs achieve 40–50% VCard acceptance rates; most programs run at 10–20%.
The economics gap: a program at 15% VCard acceptance versus 40% at $50M annual payment volume at 175 bps interchange represents approximately $2.2M annually in recoverable revenue.