Single-use virtual cards: an introduction

SUVC essentials:

• To sum up the unique single-use card features:
  • Received via email
  • Processed like any other card
  • Card number is random
  • Can only be used once
  • Only exact amount accepted

What does a single-use virtual card look like?

An SUVC can look as simple as a few lines of text containing the necessary details, or like a digital rendition of a regular card.

A single-use virtual card contains the following information:

• Randomly generated 16-digit card number
• Expiration date in the MM/YY format
• Three-four digit CVC, CVV2, or CVV code* 
• Exact sum that can be charged
• Issuing bank
• Card issuer’s address

*CVC (card verification code) or CVV/CVV2 (card verification value) are three or four-digit security numbers printed on a single use debit card or credit card (as well as regular debit and credit cards, of course).

Here’s what Melio’s single-use virtual card looks like:

For security reasons, the email you get from Melio does not contain the details of the SUVC. To view them, you’ll need to click “Get card details.” This will redirect you to a secure website, where you can view the details as pictured above.

Accept regular credit and debit cards

Any business that accepts credit or debit card payments can also accept single-use virtual cards, while keeping your existing workflow for incoming payments.

To get paid with an SUVC via Melio, for example, you need to accept Mastercard.

Have a POS terminal

In order to receive payments via SUVC, you must have a point of sale (POS) terminal that can process credit card transactions.

A POS terminal can be a physical piece of hardware that reads the magnetic strips or contactless component on the card—like the ones you see in cash registers at brick-and-mortar stores—or a virtual software platform, that is typically used by online sellers. 

Both physical and virtual POS terminals can support card-not-present transactions, where you manually input the card details to process the payment. This is exactly how a virtual, single use credit card or debit card is processed—as a card-not-present transaction.

1. Instant confirmation

A check may bounce after you deposit it. A bank transfer may fail after it’s sent due to insufficient funds. But as soon as you process a single-use virtual card, you get instant confirmation that the money is on its way and practically in the bank.

That’s because it has already been processed and collected from your customer before you processed it yourself, so there’s no risk of the payment being rejected at a later stage.

2. Fits your schedule

Forget about rushing to the bank to deposit a check before it closes, or declining a call from a client because you’re waiting for a clerk to process a payment. Small and medium-sized businesses (SMBs) dance to their own rhythms, and they need their payment workflows to fit them like a glove.

When you get an email containing an SUVC, you can process it on your POS terminal at any time, including your morning coffee, a nightcap after the kids go to bed, or weekends and holidays.

This isn’t to say that we endorse working around the clock—we always recommend that you prioritize your wellness and spending time with loved ones—but we do understand that this flexibility can make a huge difference, especially if a business owner does their own finances, has a very small team, or experiences a particularly packed quarter, that requires managing finances in off-hours.

3. Better security

Melio’s SUVCs are Mastercards issued by JPMorgan Chase, so you know your money is in good hands. But, as noted above, there’s no need to expose anyone’s bank details in order to receive payments via these disposable virtual cards.

When the card arrives in your inbox and you process it securely through your existing POS terminal, your customer’s payment details are encrypted and kept safe using top-of-the-line digital security measures.

4. Easier reconciliation

Reconciling incoming payments is a little like following your childhood dream of becoming a detective. But instead of a magnifying glass and night vision goggles, business owners now use check stubs and handwritten notes to figure out “who done it,” meaning, who sent the payment and what for.

While a business owner’s inner eight-year-old may be giggling with joy, their adult self, who chose a different path as a business owner, is likely less enthused. Reconciliation can be a frustrating process, that is also prone to costly errors.

If you collect your payments via a single use credit card or debit card, you’ll never be left guessing again. The email you’ll receive will contain all relevant information for easier tracking and reconciliation of every incoming payment.

5. No additional fees

For business owners wondering whether they should pay bills with a credit card, SUVCs offer a secure, flexible way to do just that—without disrupting your current workflow or taking on additional risk.

A single-use virtual card payment only costs you whatever processing fees you pay for any other card transaction that goes through your POS terminal.

There are no added charges for you or your customers, and you each get to keep your existing workflows.

Are there additional costs to SUVCs?

Unlike traditional cards that may come with B2B credit card processing fees, SUVCs don’t add any extra charges. When receiving your payments via single-use virtual cards, you are only charged the regular processing fees you pay for any other card transaction that goes through your POS terminal. 

There are no added charges for you or your customers.

How to start receiving SUVC payments?

To start accepting single-use virtual cards, contact our sales team and we’ll get you settled. Two important notes:

• If you opt-in to accept single-use virtual cards, they will become your exclusive method for receiving payments via Melio. This means that every time a Melio user pays you, you’ll get a single-use virtual card. 
• You can only accept SUVCs if you already have a POS terminal for processing credit and debit card transactions.

Don’t stick to habits if you don’t have to

Humans like to stick to what they know. Business owners are humans, so it’s no wonder that many of them still prefer checks as their primary payment method even though, in their private lives, they have probably moved on to making instant mobile payments on their phone apps. In fact, in the first half of 2024 alone, 1.5 billion business checks, amounting to $4.11 trillion, were processed by the Federal Reserve.

Of course, business checks have a lot of good qualities. They’re a familiar, reliable, and well-established payment method. But they are also slow, require mail or in-person delivery, and are a nightmare to reconcile. Not to mention that extra trip to the bank and the additional fees it costs to deposit them.

Having to go through a huge pile of checks waiting for reconciliation and processing is never fun, and it sure isn’t what you had in mind when you started your business.

Your chosen payment method has a significant impact on yourself, the people around you, and your customers. Don’t stick to something just because you’ve always done it that way. If there’s a better way to run your business, like in the case of single-use virtual cards (SUVCs), it’s worth giving it a shot.

For example, many vendors also offer an early payment discount when paid quickly—something SUVCs help you take advantage of by enabling faster, confirmed transactions.

A better way to get paid

Getting paid faster and more securely is a top priority for any business. With a single-use virtual card, you can stop chasing payments and start processing incoming ones around the clock, whenever is convenient for you, and receive instant confirmation. 

SUVC payments are also more secure and easier to reconcile than traditional methods, like checks or credit card payments over the phone. Finally, there’s no more need to snoop around for reconciliation information.

Plus, they’re processed just like any other card not present in your POS terminal. And they don’t cost you extra. You don’t have to change anything in your workflow or budget. It’s a win-win-win.

However, when it comes to whether you can pay taxes with a credit card, the reality is that SUVCs are better suited for vendor payments—offering control, clarity, and security for your everyday business expenses.

To start accepting single-use virtual cards, contact us and we’ll get you settled. Or just go ahead and sign up to Melio. We’ll help you explore even more ways to pay and get paid faster, more cost effectively and more securely.

Looking for more business credit card tips? Start here.