Reduce risk with seamless payment solutions
Business trips are already busy enough without the hassle of unsupportive payment methods. One impactful way to make trips easier is to re-evaluate the travel payment solution process.
Whether it's a cross-country flight or a short-day trip, business travelers handle costs such as hotel accommodation, meals, transportation, etc. Since these are business travel expenses, providing comfort and confidence to the traveler through solid payment systems can make all the difference. After all, you don't want travelers to have to dip into their own pockets.
The risks
Let's face it—nobody wants to deal with financial fraud or a data security breach on business trips. By setting up a widely accepted and secure payments solution, businesses can safeguard against fraud, data breaches, and unauthorized transactions. Giving travelers the ability to access funds safely when they need them most. Setting spending limits, tracking expenses, and using secure options keeps things smooth and stress-free for everyone.
There are many business travel payment solutions available. The options can range from a trading account to a virtual card. Let's take a look:
Central travel account (CTA)
Businesses can use a centralized payment method to make all travel-related payments. A CTA is a single corporate account managed by your travel management company (TMC) that is then linked back to the company's credit card. It can be used to book all travel-related expenses, including hotels, flights, ground transport, meals, etc. This approach offers upfront payments, consolidated billing, reconciliation, expense tracking, and reporting a breeze since all the payments are made through the one account. That said, the card linked to the central travel account has one static card number and doesn't really come with many features. In case of a security breach, loss of card, or potential fraud, businesses can lose sensitive data, face financial burden and unnecessary bills, and lose money or leave your traveler abroad without a payment solution.
Corporate credit cards
A corporate credit card is issued to employees who can use it to pay for business travel-related expenses. It's a simple solution, and employees can use these physical cards for different expenses such as flight booking, hotel bill payment, etc. You can add a spending limit to these cards as per the employee role, which helps companies manage travel spend and oversee budget leakages, saving money and cash flow issues. Even though credit cards offer flexibility, reporting, and credit or points building, business travelers have to be careful while carrying them. They are also easily vulnerable to fraud and misuse as they can be used to purchase just about anything. In this view, it can be risky for business travelers to make payments through physical cards or even carry one of them around. Carrying a physical corporate credit can sometimes make business trips uncomfortable for many.
TMC trading account
A trading account is a specialized account that is set up and managed by a travel management company (TMC). All travel bookings and payments are made through this account on behalf of the customer. This kind of payment system comes with several benefits. Since the TMC manages payments, businesses can expect minimal hassle, cost savings, and personalized service. Through a TMC trading account, businesses can drive policy compliance, access dedicated support, and get help tracking and reporting travel expenses. Generally, at the end of a billing cycle, a TMC will send one consolidated invoice with everything neatly itemized.
Virtual credit cards
The future is here with virtual credit cards. These single-use virtual cards are digital copies of a physical card issued by the card provider. This means travelers do not have to carry a physical plastic card but can still access all the same benefits. Every time a business traveler makes a payment, the card issuer sends a new card number - removing the risk of fraud, unauthorized access, and, of course, the troubles associated with carrying a physical card around. Travelers can make contactless payments for all travel-related expenses, attach it to their digital wallet, and know they always have money on the go with a little extra enhanced security. And travel program managers can implement spend controls and see transaction data, knowing that clever data encryption is doing its thing.
What's your pick?
As you weigh up the various options, including credit cards, virtual cards, and other specialized accounts, it's important to understand that each solution comes with its own set of features, benefits, and challenges.
Not every payment solution will fit all types of businesses or travellers, which why flexibility is important. A TMC can offer flexibility without compromising on security. Whether your main goal is to have a reliable and secure payment systems that can track total spending or modern, safe, data-protected solutions in the palm of your traveller's hands. The choice is yours. Either way, a simplified, company-wide payment solution will help save money, boost compliance, and streamline the reimbursement and reporting process.