If you are a small business owner in the UK, you know how important it is to accept card payments from your customers.

Card payments are convenient, secure, and fast, and they can help you increase your sales and customer loyalty. However, traditional card payments can also come with some drawbacks, such as high fees, fraud risks, and hardware requirements. 

That’s why more and more small businesses are switching to virtual card payments, a new and innovative way of accepting payments online or in person using your phone. In this article, I will explain what virtual card payments are, how they work, and why they are the best option for UK small businesses.

I will also show you how to choose the best virtual card provider for your business, and how to get started with virtual card payments in 3 easy steps.

By the end of this article, you will have a clear understanding of how virtual card payments can save you money and time, and how they can help you grow your business.

What are virtual card payments?

A virtual card payment is a payment made using a virtual card, which is a digital version of a debit or credit card that is stored on your phone or online. A virtual card has a card number, verification number, and expiry date, just like a physical card, but it does not exist in a physical form. You can use a virtual card to pay for anything online or in person, as long as the merchant accepts debit or credit card payments. You can also use a virtual card to receive payments from your customers, by sending them a payment link or a QR code that they can scan with their phone.

How do virtual card payments work?

Virtual card payments work similarly as traditional card payments, but with some key differences. Here are the main steps involved in making or receiving a virtual card payment:

• To make a virtual card payment, you need to have a virtual card linked to your bank account or e-wallet. You can get a virtual card from various providers, such as digital banks or payment apps. Some providers also offer disposable virtual cards, which are single-use cards that expire after one transaction.
• To pay online with a virtual card, you simply enter the card details on the checkout page of the website or app you are buying from. To pay in person with a virtual card, you need to have a phone that supports contactless payments (such as Apple Pay or Google Pay), and tap your phone on the terminal where the merchant accepts contactless payments.
• To receive a virtual card payment from your customers, you need to have a virtual terminal or a payment app that allows you to generate payment links or QR codes. You can then send the payment link or QR code to your customers via email, text message, social media, or any other channel. Your customers can then click on the link or scan the code with their phone, and enter their card details or use their e-wallet to complete the payment.

Why are virtual card payments the best option for UK small businesses?

Virtual card payments offer many benefits for UK small businesses compared to traditional card payments. Here are some of the main reasons why you should switch to virtual card payments today:

• Save money: Virtual card payments can help you save money on fees and hardware costs. Unlike traditional card payments, which usually charge you a fixed fee per transaction plus a percentage of the sale amount, some virtual card providers charge you only a flat fee per transaction or no fee at all. This means you can keep more of your profits and avoid paying extra fees for low-value transactions. Moreover, with virtual card payments, you don’t need to buy or rent any expensive hardware such as card readers or terminals. All you need is your phone and an internet connection.
• Save time: Virtual card payments can help you save time on processing and reconciling payments. With virtual card payments, you can accept payments instantly and securely without any delays or hassles. You don’t need to deal with cash handling, invoicing, or chasing late payments. You also don’t need to worry about updating your software or maintaining your hardware. Everything is done online and automatically synced with your bank account or e-wallet.
• Reduce fraud: Virtual card payments can help you reduce fraud risks and chargebacks. Virtual cards are more secure than physical cards because they cannot be stolen or cloned. They also benefit from advanced security features such as encryption, tokenization, biometric authentication, and two-factor verification. These features make it harder for hackers or fraudsters to access or misuse your or your customers’ card details. Furthermore, some virtual cards are disposable, which means they expire after one use and cannot be reused by anyone else.
• Increase sales: Virtual card payments can help you increase sales and customer loyalty by offering more convenience and flexibility to your customers. With virtual card payments, you can accept payments from anywhere and anytime, whether online or offline. You can also accept payments from customers who don’t have cash or physical cards with them. You can also offer your customers more payment options, such as buy now, pay later services, which allow them to split their payments into instalments without any interest or fees. These options can help you attract more customers, increase your conversion rates, and boost your customer retention.

How to choose the best virtual card provider for your business?

There are many virtual card providers available in the UK, but not all of them are suitable for your business. To choose the best virtual card provider for your business, you need to consider the following factors:

• Fees: Different virtual card providers charge different fees for their services. Some charge a flat fee per transaction, some charge a percentage of the sale amount, some charge a monthly or annual fee, and some don’t charge any fees at all. You need to compare the fees of different providers and see which one offers the best value for your business. You also need to check if there are any hidden fees or extra charges for certain features or services.
• Features: Different virtual card providers offer different features and functionalities for their services. Some offer only basic features such as generating payment links or QR codes, while others offer more advanced features such as creating disposable cards, integrating with accounting software, or offering buy now, pay later options. You need to check what features each provider offers and see which one meets your business needs and preferences.
• Support: Different virtual card providers offer different levels and types of support for their services. Some offer 24/7 customer service via phone, email, or chat, while others offer limited or no support at all. You need to check how responsive and helpful each provider is and see which one gives you the best customer experience and satisfaction.
• Reviews: Different virtual card providers have different ratings and reviews from their customers. You need to check what other users say about each provider and see which one has the best reputation and feedback. You can also look for testimonials, case studies, or awards that each provider has received from industry experts or peers.

Why GB Pay?

One of the best virtual card providers in the UK that meets all these criteria is GB Pay (https://www.gbpay.uk), a payment app that allows you to accept card payments from your customers using your phone. GB Pay is a simple, secure, and affordable solution for UK small businesses that want to save money and time with virtual card payments. Here are some of the benefits of using GB Pay for your business:

• Low fees: GB Pay charges you only a flat fee of 1.5% per transaction, regardless of the sale amount or the card type. There are no monthly or annual fees, no hidden fees, and no extra charges for any features or services.
• Easy setup: GB Pay is easy to set up and use. You don’t need to have a merchant account or a business bank account to use GB Pay. You just need to download the app from the App Store or Google Play, register with your personal details and bank account information, and start accepting payments right away.
• Fast payouts: GB Pay pays you out within 24 hours of receiving a payment from your customers. You don’t need to wait for days or weeks to get your money. You can also track your payments and balance on the app in real time.
• Multiple payment options: GB Pay allows you to accept payments from various types of cards, such as Visa, Mastercard, American Express, Maestro, and more. You can also accept payments from e-wallets such as Apple Pay or Google Pay. 
• Secure transactions: GB Pay ensures that all transactions are secure and compliant with the highest standards of data protection and encryption. GB Pay uses tokenization technology to replace sensitive card details with unique tokens that cannot be decrypted or reused by anyone else. GB Pay also uses biometric authentication and two-factor verification to prevent unauthorized access or fraud.
• Customer support: GB Pay provides 24/7 customer support via phone, email, or chat. You can contact GB Pay anytime you have a question or an issue with your service. GB Pay also provides online tutorials and FAQs to help you get started and use the app effectively.

How to get started with virtual card payments in 3 easy steps?

If you are ready to switch to virtual card payments and enjoy all the benefits they offer for your business, here are the 3 easy steps you need to follow:

• Step 1: Signup for the GBPay platform at gbpay.uk
• Step 2: Add your business and connect your stripe account.
• Step 3: Generate a payment link or a QR code, put it on your store front or send it to your customers via email, text message, social media.

Simple and easy.

Your customers can then pay you with their card or e-wallet by clicking on the link or scanning the code.

That’s it! You have successfully switched to virtual card payments and started saving money and time with GB Pay. You can now enjoy all the benefits of virtual card payments for your business, such as lower fees, faster payouts, reduced fraud, and increased sales.

If you want to learn more about GB Pay and how it can help you grow your business, you can visit their website or contact their customer support.

I hope you found this article helpful and informative. If you have any questions or feedback, please leave a comment below. I would love to hear from you and answer any queries you may have.