Digital transformation is rapidly reshaping B2B payments. U.S. businesses are expected to move $17.6 trillion via ACH alone by the end of 2025, and overall buyer-supplier transactions will be overwhelmingly digital. Within this shift, virtual credit cards, single-use, one-time digital numbers, are emerging as the leading method. Forecasts show U.S. virtual card volume rising from ~$531 billion in 2024 to $662 billion in 2025, while global usage is set to triple past $5 trillion.

Most of this growth will come from the commercial sector. Analysts project that by 2025, 80% of the virtual card market will be B2B payment, driven by corporations and governments issuing cards for supplier and travel expenses. With many companies mandating electronic payments from partners, up to 80% of supplier transactions are expected to be digital within a few years. Virtual cards deliver the speed, control, and data transparency that paper checks and legacy ACH cannot.

A 16× Security Advantage Over Checks and ACH

One of the most compelling reasons companies switch to virtual cards is security. Paper checks and ACH transfers are notoriously vulnerable to fraud. Checks can be intercepted, altered, counterfeited or stolen in transit. Even ACH (bank-to-bank transfers) are subject to cyberattacks and account takeover (fraudsters can trick AP staff via fake invoices or phishing to change bank details).

When compared to virtual cards, they offer built-in fraud protection as each card number is tokenized, single-use, and tied to one transaction with a strict dollar limit. If stolen, a virtual card number is useless to fraudsters. Industry data paint a stark contrast in fraud rates:

• Checks are far riskier: Financial benchmarks show that paper checks have by far the highest fraud exposure. In one survey, 63% of companies reported check fraud incidents in a year. Physical checks can be duplicated or altered, and even account details printed on checks can be exploited if a statement is lost.
• ACH still isn’t foolproof: While more secure than checks, ACH is not immune; about 30% of organizations report fraudulent activity on ACH payments. Common scams include Business Email Compromise (BEC) attacks, where fraudsters redirect payments to illicit accounts. Companies must tightly manage ACH bank details and follow complex rules (OFAC/Patriot Act) to avoid sending funds to illegal parties.
• Virtual cards virtually eliminate fraud: With tokenization and one-time usage, only 9% of firms reported any fraudulent charges on virtual cards in 2022. In fact, an analysis of U.S. government payments found paper checks are 16× more likely to be lost or stolen than electronic payments. Similarly, Treasury research cited by industry notes that digital payments are 16 times less likely to encounter post-payment issues (like fraud or errors) than paper checks. So, if a virtual card number is compromised, it can’t be reused, so fraudulent payouts drop dramatically.

These security gains translate to real savings. Issuing a paper check typically costs $2-$4 (printing, postage, labor) versus only ~$0.40 for an ACH transfer. Eliminating paper checks also slashes the administrative overhead of chasing late checks or resolving disputes.

And crucially, virtual cards carry no risk of nonpayment. Once a card is issued for a transaction, funds are guaranteed (unlike ACH checks, which can bounce or be reversed). All told, companies see virtual cards not only pay for themselves in rebates and float (see below), but also cut fraud losses dramatically. Key security benefits of virtual cards:

• Tokenization: Each card number is randomly generated and never reused.
• Limited use: Cards are often one-time or single-merchant, so there is less exposure of raw account data.
• Preset controls: Buyers can cap a card’s amount, merchant category (MCC), and valid dates, which ensures it can’t be misused.
• Automatic alerts: Many systems flag any declined or unusual transactions in real time.
• No PCI burden: Suppliers don’t need to store card details on file, it reduces PCI compliance risk.

Virtual cards offer a security advantage measured in the many-fold reduction of fraud compared to checks or ACH. Companies report far fewer investigations and chargebacks once they switch, freeing up AP staff from detective work and preserving supplier trust.

96% of Manufacturers Are Abandoning Checks for Real-Time Payments for B2B Payment

Another thing boosting the usage of virtual cards is the broader rise of real-time payments (RTP). Many B2B industries (especially manufacturing) are now shifting away from checks and are choosing instant, electronic transfers. In fact, a recent survey found an astonishing 96% of manufacturing firms expect real-time payment systems (like RTP or FedNow) to replace checks for outgoing payments. That means nearly all manufacturers plan to stop writing checks for vendor bills soon. Cash-flow needs drive the trend as manufacturers want suppliers paid immediately to secure discounts and avoid stockouts. Real-time rails deliver funds in seconds or minutes instead of weeks.

Virtual cards fit hand-in-glove with this transition. They settle instantly, providing the same immediate-funding benefit as RTP. Unlike ACH (which can take 2-3 days) or check mail (often 7-10 days), a virtual card payment is approved and funded in real time. This lets buyers take early-pay discounts and avoids delays that hurt supplier relationships.

Suppliers, for their part, appreciate knowing funds are guaranteed (cards are debit-like) and available right away, which simplifies their receivables. One study of suppliers who accepted virtual card payments found that the average Days Sales Outstanding (DSO) fell by 67%, meaning they received payment far faster.

Meanwhile, businesses that don’t adapt risk falling behind. As virtual cards and RTP become standard expectations, vendors often require electronic payments. In fact, 80% of B2B buyers prefer suppliers who accept virtual cards, as this speeds up procurement and simplifies invoicing.

In response, even traditionally paper-heavy sectors are building infrastructure: banks, fintechs, and major ERP/Procurement platforms now offer plug-and-play virtual-card issuance tied to POs and invoices. As one C-suite controller put it: the pandemic “brought attention to the need … for real-time expense oversight,” and virtual cards provide that.

Why manufacturers embrace RTP/virtual cards:

• Cash flow control: Instant payments let buyers optimize working capital and capture supplier rebates.
• Supply chain stability: Faster payments help secure raw materials and production slots.
• Competitive edge: Real-time settlement can become a negotiating tool; suppliers may offer price cuts for immediate pay.
• Policy mandates: Governments and large enterprises are phasing out checks (e.g., the U.S. Social Security program will end paper checks by 2025 to cut fraud by 16×), setting an example that filters down to industry.

Together, these factors explain why nearly all manufacturers plan to ditch checks for digital payments. As the industrial base moves to RTP, virtual cards often serve as the easiest on-ramp, working over existing banking rails while providing a card-like experience and data.

Setting Up Virtual Card Programs: Costs, ROI, and Payoff

With virtual card adoption taking off, many companies ask: How quickly do I recoup the investment? Thankfully, virtual card programs tend to pay for themselves rapidly. Implementation costs are usually modest: there’s typically no need to overhaul your banking or ERP system.

Most card issuers and program managers offer free onboarding and supplier enablement. Setting up a virtual-card system can take weeks to a few months, depending on ERP integration and supplier outreach, but the platform costs are low.

On the return side, the benefits stack up fast:

• Rebates and earned credit: Many virtual card programs function like credit cards: for each dollar charged, the issuer pays a rebate (often 1-3%) to the buyer’s company or AP department. These rebates can be sizable over time – in one case, a school system offset its AP budget by $100k annually in card rebates. Because of this rebate income, a Forrester Total Economic Impact study found organizations adopting B2B virtual payments achieved 132% ROI over 3 years, with a payback period under 6 months. In other words, most buyers recover their implementation costs and then some within the first half-year.
• Expense reduction: Virtual cards virtually eliminate many AP expenses. Sending a check involves printing, postage, manual data entry and bank processing, typically $2-$4 per check. Even ACH transfers require manual upload and verification. Virtual cards, by contrast, are electronic end-to-end: once vendors are set up, payments are one-click from the AP system and automatically reconcile. The Treasury and industry note that electronic payments are 16× less likely to incur post-payment issues than paper checks, which translates to huge labor savings (fewer calls chasing lost checks or fixing errors).
• Working capital float: Credit-card style payment terms create extra float. In many virtual card setups, the buyer’s bank doesn’t debit the funds until the end of the billing cycle (often 30+ days), even though the supplier is paid immediately. This float is like an interest-free loan: the buyer holds onto cash longer, boosting working capital.
• Automation gains: Virtual card platforms often come bundled with AP workflow tools (invoice matching, vendor portals, reporting). Companies report slashing reconciliation tasks by 80-90% once cards are in place. The time freed up allows finance teams to focus on analysis instead of paperwork, which is hard to quantify but is real productivity ROI.

Companies typically see a short ROI timeline. Because the software/platform fees are low or zero, the significant “cost” is project management, training staff, and onboarding vendors. Many firms start by running a pilot in a few spend categories (e.g., travel, indirect materials) and, within 3 to 6 months, see rebate checks coming in.

From there, they can expand to high-volume categories like utilities and materials purchases. With virtually zero upfront fee, you start getting credit from day one.

Conclusion

The shift to digital payments is no longer optional for B2B organizations. As real-time payment networks and virtual card programs become standard, companies that adopt them gain clear advantages: stronger fraud protection, faster supplier payments, and measurable financial returns through rebates and reduced administrative costs.

With trillions in transactions moving off paper checks and legacy ACH, virtual cards stand out as a practical way to meet modern payment demands while improving cash flow and supplier relationships. Businesses that make this transition now are positioning themselves to stay competitive as digital payments dominate the next phase of B2B commerce.