Card Management System
What are Card Management Systems?
Card management systems are financial systems that create and manage physical and digital credit cards. Features include issuing payment cards as well as managing the data associated with them.
Businesses can use card management systems to issue virtual cards or physical cards, replacing the need for reimbursement reports. By connecting these to expense management software, accounting teams can track work-related expenses, reimburse employees, and generate reports necessary for tax season. This means less time spent on gathering receipts and managing paperwork. Business owners can also restrict the type of purchases made.
Card management systems are great financial tools that simplify payment processing, and they can be used as part of an employee benefits package or award program. One of the most useful features to businesses is the ability to offer employees virtual credit cards.
Virtual credit cards (VCCs) give businesses a faster, more secure way to pay for things online. VCCs have a unique number and employers can set spending limits. Employees often need to make company related purchases. They're quick and safe, allowing employees to pay for things right from their desktop or mobile devices. They're also easier for finance teams to manage, helping them to reduce financial risk and avoid reimbursements and expense claims. Access to company funds is simple with no need for plastic cards and making it easy to track expenses and get work done.
Card management services can also extend into Banking as a Service (BaaS) features. Issuing lines of credit requires specific licensing by law. However, businesses can outsource BaaS services to banking institutions and offer their customers lines of credit. Embedding financial services into their product line can allow companies to offer convenience and speed to customers. Businesses can enhance the customer journey by offering membership perks to their customers for their credit usage. An example of this might be a bookstore that offers a branded credit card that earns points on every book purchase. Options like these help businesses leverage customer buying power and extend profits.
This financial technology should not be confused with programs for creating membership cards, access cards, or gift cards. For instance, visitor management software can offer options for issuing cards. In this case, the software is used to create passcards, “backstage” passes, or ID cards for visitors entering secure locations and events. However, this is not the same technology that businesses use to issue credit or debit cards.
Card Management System Features
System features are heavily dependent on the card issuer’s requirements, but many include:
Generate debit, credit, or prepaid cards
Issue virtual credit cards (VCCs)
Financial reports and analytics
Set spending limits and disable lost cards
Card information database
Card management number
Billing and invoicing
Templates, custom card design and personalization options
Card ordering, inventory, and duplication
Integration with accounting systems
Compliance with security regulations and privacy standards
Banking as a Service (BaaS)
Data encryption via HSM
EMV chip card issuing
Chip data personalization
Card detail maintenance customer service
Lost and stolen card processing
Card Management System Comparison
When comparing systems, consider these factors:
- Security: Any system should comply with security standards as well as privacy regulations. Check for features that will allow you to limit spending and disable lost or stolen cards. Will you need to issue physical plastic cards with EMV smart chips, or virtual credit cards (VCCs) that can be issued quickly and used online?
- Banking as a Service (BaaS): Do you need Banking as a Service (BaaS) features to extend sales reach and meet customer demand? If so, be sure that critical banking services are included so customers can efficiently manage their funds.
- Expense Management: If you need to manage employee travel expenses and streamline expense reports, check which solutions integrate with your current accounting system.
You’ll also want to evaluate the ease of setup and access to training, consultative services, and technical support. Make sure the ease of integration and deployment options are a good fit for your business.
Card management systems are usually priced per card per month in blocks. Most card issuance systems start at $29-149/month, depending on the level of service and the number of cards (virtual or physical) issued. Some companies offer free trials. Other solutions are add-ons to financial management programs. While vendors don’t typically disclose pricing information, custom pricing is available for larger organizations and enterprises.
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