Virtual cards are becoming more prevalent in the B2B space. What does this mean for you?

• Virtual cards constitute a growing method of payment utilized by buyers for B2B payments, given the benefits of speed, security, operational efficiency, and customer satisfaction. 
• A primer on virtual card payment receipt, processing, reconciliation and risk management is included.
  
• Decisions to make when considering virtual card acceptance pertain to acceptance scope, mismatched payments, and returns and credits.

74% of B2B buyers anticipate at least a quarter of transactions will use virtual cards by 2028, according to the 2025 whitepaper Unlocking procurement value through embedded finance.  For businesses, that’s good news for speed of cash flow and reconciliation, but it can feel new if your team is used to checks or bank transfers. This guide explains the supplier experience in plain language: how the payment arrives, how you process it, how to reconcile and how automation options, such as straight through processing, reduce work. By the end, you’ll know what to expect day-to-day and which decisions to make up front.

A virtual card is a payment option linked to an underlying funding account. Based on the credit limit of the funding account used, unique virtual card numbers – each with a different 16-digit number, expiration date and CVC – can be generated, keeping the funding account number concealed.

Virtual card numbers come with custom controls that allow organizations to regulate where, when and how much can be spent, making them one of the most preferred B2B payment methods for speed, security and control.

For businesses, virtual cards enable:

• Faster payments: Funds arrive quickly – no waiting for checks to clear.
  
• Reduced risk: Unique card numbers reduce fraud exposure and eliminate the need to share sensitive bank details.
  
• Improved processes: Remittance data travels with the payment, enabling automatic invoice matching and reconciliation.
  
• Increased sales: Many customers prefer virtual cards for their own rebate and control programs. Accepting them can help win new business and strengthen existing relationships. 

Corporate buyers also like them because they’re efficient and offer better control than traditional corporate cards. 

This trend is expected to accelerate. According to the white paper, The state of commercial card acceptance 2025, 48% of B2B suppliers expect buyers to ask to pay by card more often over the next five years.

Virtual card payments typically arrive in two ways:

• Manual delivery: An email, phone call or portal notification provides card details and remittance information (invoice numbers, purchase order (PO) number, amounts, tax, freight costs). Your accounts receivable (AR) team keys the card into your gateway and captures the amount.

• Automated delivery: With straight through processing, payments are authorized and captured automatically. Mastercard’s Commercial Direct Payments is a card network agnostic solution that automates payment processing and reconciliation through a single integration that connects multiple acquiring payment service providers (PSP). Mastercard Receivables Manager aggregates virtual card payments across all networks and delivers standardized remittance data to your Enterprise Resource Planning (ERP) platform for reconciliation, while funds are delivered directly to your bank account.

Automation is increasingly common. According to our research, 60% of card-accepting suppliers use services that match payments to invoices, and 57% automate transaction processing.

The steps for processing the payment are different based on how the payment arrives. For manual delivery, the process includes the following steps: enter the card number, expiration, CVV and amount; submit; capture; and post the payment against the invoice. Most virtual cards are set to the exact invoice total. A call to the customer may be required if there are changes to the invoice.

For payments made with straight through processing, the keying step is removed. Straight through processing through Commercial Direct Payments posts transactions to your merchant account and loads remittance to your systems. Mastercard Receivables Manager consolidates virtual card payments from all networks, and provides an import-ready remittance format. Your ERP auto-applies the payment, and your team only works exceptions, such as amount mismatches or declines.

32% of B2B suppliers who accept cards report greater payment visibility, and 30% report faster processing speeds than suppliers who do not accept cards.

Virtual card transactions settle like any other card-not-present transaction through your existing merchant account. One of the biggest upsides is cleaner reconciliation. Remittance data accompanying virtual card payments typically includes invoice numbers. For manual delivery, your team matches the payment to open invoices using that data. With straight through processing through Commercial Direct Payments and Mastercard Receivables Manager, payments post automatically to the right invoices in your ERP. The payment amount usually arrives 1–3 business days after data capture.

No matter the payment delivery method, virtual card transactions should be treated like other card-not-present sales:

• Keep proof of delivery, signed purchase orders and clear terms to reduce chargebacks.
• Avoid storing full card numbers or CVVs. Commercial Direct Payments and Mastercard Receivables Manager help here because you don’t handle raw card data.

Security concerns are common among businesses who don’t accept cards, but 31% of suppliers who accept cards say increased transaction security is a benefit, and 25% report a lowered incidence of fraud. 

Once you’re set up, your workflow becomes predictable:

• Automated payments from the previous night settle and reconcile in your ERP from Commercial Direct Payments or Mastercard Receivables Manager. A small exceptions queue appears for items such as amount mismatches. 
• AR team manually resolves exceptions (requests reissued cards if needed) and processes any remaining manual portal payments. 
• Finance reviews a daily remittance report. Same day reporting is received to match batch closing.

You can set yourself up to have the program you want depending on the policies you put in place. A short list of policy examples that can prevent bottlenecks later includes:

• Acceptance scope: Which buyers and order sizes will use virtual cards? Do you prefer ACH for very large invoices?
• Shipping timing: Ship on authorization or after settlement? For made-to-order, consider pre-authorization and capture at shipment.
• Mismatches: If the card amount doesn’t match the invoice, will you require a reissued card or handle partial capture and credit/rebill?
• Returns and credits: Standardize refund timelines and the path when cards are closed or expired.

These decisions are critical, especially since 89% of suppliers find it difficult to balance their business needs with those of their B2B customers, and 66% regularly fail to meet buyer expectations for payment experience.

• Weeks 1–2: Train AR to process manual virtual cards in your current card payment application.  With respect to remittances, document exception handling (who contacts the buyer, turnaround times).
• Weeks 3–6: Enable Level 2/3 data with your acquirer. Pilot Commercial Direct Payments with your acquirer for a few high-volume buyers. Enroll in Mastercard Receivables Manager for virtual card processing and connect its remittance feed to your ERP.
• Ongoing: Expand automation to more buyers, tighten reconciliation rules and monitor exceptions, based on your volume and merchant category.

Virtual cards aren’t just a new way to get paid: they’re a smarter way to run your business.

As customer expectations shift toward speed, flexibility and transparency, businesses who embrace virtual card acceptance are better positioned to respond. They’re not just improving cash flow or reducing manual work – they’re strengthening relationships, unlocking working capital and building scalable, future-ready operations.

Mastercard’s The state of commercial card acceptance 2025 white paper reveals findings from our global research involving over 1,000 financial decision makers at large B2B suppliers. If you're considering card acceptance as part of your payment modernization strategy, this research is a must-read. Download the white paper to learn more.

Note: All statistics in this article unless otherwise noted are sourced from The state of commercial card acceptance 2025