How Automation and Virtual Cards Work Together to Stop Payment Fraud
The Payment Security Ecosystem: How Automation and Virtual Cards Work Together
Payment fraud is rising, and it’s getting more sophisticated. Today, 80% of organizations report attempted or actual fraud. Fraudsters have moved beyond forging checks. They're targeting weak spots in email approvals, vendor updates, and manual payment processes.
Many companies patch these threats with separate tools. Forward-thinking finance leaders take a smarter approach. They combine B2B payment automation and virtual cards to create a powerful security ecosystem that outperforms standalone fixes.
B2B Payment Automation: Your Security Foundation
Think of payment automation as the secure environment where all your payment activities can safely happen. It creates the framework that supports and protects your entire payment ecosystem.
This foundation includes:
Secure vendor portals: Vendors update their banking details through a protected system instead of risky emails, cutting fraud risks dramatically
Structured approval workflows: Every payment and vendor change goes through proper verification steps
Automated verification: The system checks bank details against trusted records before sending money
Real-time alerts: Any unusual activity gets flagged so your team can jump into action
Without these protections, your AP department remains vulnerable to sophisticated scams that can drain your accounts quickly. Manual processes create gaps that fraudsters are experts at exploiting.
Protection in Action
Consider this scenario: A manufacturing company receives an email requesting a bank account change for a supplier. The email appears genuine, but it’s actually AI-cloned from a fraudster. Without verification controls, the AP team might process a $50,000 payment to this fraudulent account.
But with automated vendor verification, this request would be flagged for manual review. The fraud is caught before any money leaves the company.
This scenario happens all the time to businesses of all sizes. The difference between a close call and a devastating loss often comes down to having automated safeguards in your corner.
Virtual Cards: Your Active Protector
Traditional payment methods like checks and ACH leave your business exposed. If account numbers are stolen, they can be used repeatedly. Virtual cards eliminate this risk by creating single-use payment credentials specific to each transaction. Every virtual card is tied to a specific invoice, loaded with an exact amount, and expires after use.
Security Features That Make a Difference
Unique for each transaction: Every payment generates a new card number, so stolen details become useless
Pre-set spending limits: Cards are loaded with only the approved amount, preventing overpayments
No exposed bank details: There's no static account number that can be compromised
Built-in fraud controls: The card network's security infrastructure adds another layer of protection
Financial Benefits Beyond Security
Virtual cards offer more than protection. They create meaningful financial advantages for your business. Rebates turn payments into revenue, generating cash back on eligible transactions. You gain better cash flow management by scheduling payments strategically.
Additionally, the system connects each payment to its invoice for automated reconciliation. This makes your day-to-day life easier. Plus, vendor acceptance becomes simpler without the need to collect sensitive banking information.
Making a Real Difference
Take a real success story: A Corpay customer, a large North American energy company processing over $14 billion in AP spend, transformed their payment security with virtual cards. They eliminated 132,000 paper checks annually, saving $678,000 while dramatically reducing fraud risks. The best part? The system integrated with their existing ERP within just 30 days.
For finance teams focused on protecting company assets while improving efficiency, virtual cards serve as more than a secure payment method. They're a smarter way to pay.
The Power of Integration: Why Layered Security Matters
When payment automation and virtual cards work together as a system, they create comprehensive protection that addresses vulnerabilities at every stage of your payment process.
This integrated approach prevents:
Business Email Compromise: The secure environment blocks email based manipulation
Check fraud: Eliminating paper removes entire fraud categories
Internal fraud: Complete visibility and proper separation of duties deters internal threats
Vendor impersonation: The system naturally identifies and rejects imposters
Data breaches: Reduced handling of sensitive banking information limits exposure
Basic fraud prevention methods like email verification or manual approvals are no longer enough on their own. With business email compromise losses topping $2.7 billion in 2022 alone, you need multiple layers of protection against increasingly clever fraud attempts.
A comprehensive, automated system strengthens your security by:
Using real-time monitoring to spot unusual patterns
Requiring multi-step verification for vendor changes
Preventing payment redirection with locked, single-use virtual cards
Creating audit trails that document every action in the payment process
Separating duties so no single person controls the entire payment flow
These layered security measures give your finance team real protection against sophisticated fraudsters, while outdated manual processes leave you vulnerable.
What If You Already Have Some Security Measures?
Even if your company has basic security controls, fraudsters target the gaps between processes. A fully integrated system ensures no single point of failure exists. If a fraudulent email bypasses one checkpoint, another layer of protection will catch it before money leaves your system.
This full protection is especially critical today, as fraud tactics are evolving faster than ever. Piecemeal solutions simply can't keep up with modern threats.
A Smarter Approach to Payment Fraud Prevention
The payment security ecosystem we've described represents a real shift in how businesses handle fraud prevention. Rather than separate tools working independently, it creates a complete defense where each part strengthens the others.
By using this connected approach, you not only shield your company from all types of payment fraud but also create efficiencies that boost your bottom line. Companies that adopt this integrated strategy typically see meaningful reductions in payment processing costs while strengthening their security.
Ready to strengthen your payment security?