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Dive Brief:

The credit card giant American Express in April started offering its small business customers a way to pay their suppliers and vendors without a physical credit card. Small business owners with certain American Express accounts who want a virtual card will receive a unique card number and a security code that will let them pay suppliers who accept American Express. “This has been a popular tool across big companies for the past few years or so,” Rodrigo Gutierrez, senior vice president of small business card product management and banking for American Express, said in an interview last week, noting that virtual cards are already available to Amex’s corporate card accounts.

Dive Insight:

New York City-based Amex has nearly 3.9 million U.S. small business customers, a spokesperson said in an email. The spokesperson declined to say how much of the card company’s overall payment volume comes from small businesses customers.

The credit card giant argues the virtual cards give small business owners more flexibility and a new tool to streamline their spending.

The cards let business owners set spending limits on categories like travel, Gutierrez said. “It really is a way to help them keep control” over their finances, he said.

Small business owners can create a virtual card through through American Express Business Blueprint or their online Business Card account.

The virtual cards have layers of security to prevent fraud, Gutierrez added. “We provide unique numbers and unique security codes, and the whole backing of American Express security,” he said.

Small business customers who use the virtual card will be eligible for the company’s rewards points, Gutierrez added.

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