For online travel agencies, managing B2B payments is one of the more complex aspects of the job. Tight margins, multiple currencies, and a fragmented network of suppliers make it difficult to keep financial operations both accurate and efficient. Virtual cards are now widely used to help tackle these challenges. They offer a flexible and secure way to handle supplier payments, speed up reconciliation, and maintain visibility and control, even when transaction volumes are high and bookings involve several parties across different locations.
Key takeaways
- Online travel agents can use single-use virtual cards to manage supplier payments with better accuracy and control.
- Virtual cards reduce exposure to fraud and simplify reconciliation compared to traditional payment methods.
- Integration with booking platforms helps automate the payment process and supports real-time data visibility.
- Card controls such as spending limits, usage timeframes, and category restrictions support compliance and help avoid operational risks.
- OTAs using virtual card technology often see improvements in cash flow management, security, and vendor relationships.
B2B payments challenges for travel agents
Travel agents face a specific set of payment challenges. Unlike many other sectors, they operate as intermediaries rather than direct providers, processing a large number of transactions across a wide network of airlines, hotels, rail operators, and activity suppliers. Each of these partners may require payment in different formats, currencies, and timelines.
One of the biggest difficulties is reconciling payments across so many suppliers without introducing delays, mistakes, or currency conversion losses. Payments are often made well in advance of the actual trip, and cancellations can disrupt the expected financial flow. Relying on wire transfers or standard credit cards in this environment frequently results in missing data, high fees, and limited scope for automation.
The process is further complicated by the number of parties involved. The OTA, supplier, acquiring bank, and card network may each handle part of the transaction, making it difficult to maintain consistent records without access to real-time information.
Manual processing leaves room for human error, and storing centralised credit card information creates security risks. Refunds and chargebacks can be difficult to manage when older systems lack the flexibility and speed needed to support how travel payments work today.
Further Reading: Top 5 Payment Challenges Faced by OTAs and How to Overcome Them
What are virtual cards?
Virtual cards are digital versions of payment cards, created electronically for single-use or tightly controlled transactions. Each one comes with its own card number, expiry date, and security code, and is connected to a central account. Since there’s no physical card, there’s nothing to lose or steal, which adds a layer of safety.
They’re issued instantly through financial platforms and can be set up with specific rules like spending limits, merchant restrictions, or time-based validity. This level of control makes them a practical choice for handling transactions in complex industries such as travel.
For online travel agents, virtual cards offer a secure and accurate way to pay suppliers. Each transaction stands on its own, fully tracked and recorded, without exposing the company’s main account or credit line.
How do virtual cards work?
A virtual card is created through an issuing platform or API and is linked to either a specific transaction or a set of predefined rules. Once it’s ready, it works just like a regular credit card. The travel agent enters the card number, expiry date, and security code to pay the supplier.
Each virtual card draws funds from a connected source, such as a business account or a preloaded balance. In most cases, the card is single-use, meaning it becomes inactive after the payment is made or the booking is confirmed. This setup helps prevent duplicate charges or billing mistakes.
Some systems generate one virtual card per supplier or booking, while others issue them in batches to cover multiple transactions. Whichever method is used, all activity can be tracked in real time through a dashboard or integrated accounting tool.
Further Reading: How Virtual Cards Work: The Technology Behind the Solution
Use cases of virtual cards for travel agencies
Virtual cards have become a go-to tool for travel agents and travel management companies (TMCs) seeking more control over B2B payments. Their flexibility makes them applicable in several scenarios.
1. Paying multiple suppliers per booking
When a customer makes a booking that includes flights, accommodation, and activities, OTAs must pay multiple suppliers in different locations. Using a single-use virtual card per supplier helps track each transaction independently and simplifies reconciliation.
2. Reducing fraud exposure
With virtual cards, there’s no need to store or reuse card details. Each transaction is protected by a dedicated number, expiry date, and defined controls. If a supplier system is compromised, the exposure is limited to that single card.
3. Handling cancellations and refunds
Cancellations are common in the travel industry, especially for hotels and flights. Virtual cards let travel agents keep each transaction separate, which helps when processing partial refunds or handling payment reversals without confusing the financial records.
4. Managing currency conversion and fees
Using the Mastercard Wholesale Program or similar network-based support, OTAs can manage payments in multiple currencies while avoiding foreign exchange fees. This improves profitability and protects margins on international bookings.
5. Gaining visibility and insights
Every transaction is logged with supplier details, card settings, and amounts, giving finance teams immediate insight into spending patterns and vendor performance.
Further Reading: The Ultimate Guide to Virtual Card Solutions for Travel Companies
How can virtual cards assist you in B2B travel payments?
For travel agents managing frequent supplier transactions, virtual cards offer a more structured and reliable way to handle payments. Each card is issued with a clear purpose, linked to a specific booking, which keeps the process accurate and easy to follow.
They also support better cash flow planning. Paying at fulfilment rather than in advance means funds stay available longer, which is helpful when schedules shift or bookings are cancelled.
Security settings can be adjusted for each card – controlling amounts, timeframes, or merchant types. If something looks off, the card can be cancelled immediately, helping travel businesses avoid unwanted charges and maintain cleaner financial records.
Why other legacy payment solutions fall short for OTAs
Some OTAs still depend on older payment methods such as wire transfers, shared corporate cards, or net invoicing. While these systems may have worked in the past, they often struggle to meet the current demands of B2B travel payments.
Wire transfers can take several days to settle and are often disconnected from the booking data. This creates gaps in visibility and makes reconciliation more time-consuming than it should be.
Using a physical credit card across multiple departments or suppliers increases the chance of unauthorised use. Tracking who spent what, and where, becomes difficult when a single card is shared too widely.
Net invoicing can also be problematic. It slows down the payment cycle and puts more weight on supplier trust. Inconsistencies between expected and actual charges lead to disputes, which affect both workflow and relationships.
These methods also tend to operate in isolation. Without connected systems or real-time tracking, travel agents deal with inefficiencies that cost time, limit oversight, and make it harder to stay competitive.
Tips on how to integrate virtual cards into your travel booking platform
Adopting virtual card payments doesn’t require rebuilding your entire infrastructure. Many modern platforms support integration through APIs or pre-built modules. Still, careful planning helps avoid disruptions and makes sure your payment systems align with your operational needs.
- Work with a provider that supports the travel sector.Look for platforms that understand OTA workflows, support high transaction volumes, and are familiar with supplier-side requirements.
- Use APIs for real-time issuance and tracking.Connecting your booking platform to a virtual card API lets you issue cards automatically when a booking is confirmed. This keeps your payment system in sync with your booking engine.
- Configure spending limits and expiration rules.Make use of controls to avoid errors or overspending. Set expiration dates to match the travel date, or configure cards to become inactive after a single transaction.
- Connect to your accounting or spend management system.Make sure your payment data flows into your expense management platform or ERP system. This helps with reconciliation and supports accurate financial operations.
- Test with a limited supplier group before scaling.Start by using virtual cards with a few selected travel suppliers. Once the system is stable, roll out across more categories and services.
Further Reading: Enhancing Travel Expense Management with Virtual Cards
How Wallester’s solution simplifies payments for online travel agencies
Wallester provides a modern platform built to meet the needs of online travel agents and intermediaries. Its virtual card issuing system supports real-time payments, high-volume usage, and full control over each transaction.
Travel agents can issue individual virtual cards for each supplier, configure spending limits, and manage cards through a central portal. Cards can be created instantly for single bookings or integrated into an automated workflow via API.
Wallester supports payments in multiple currencies, helping OTAs reduce friction when working with international vendors. Cards are accepted globally, and the system supports connections to popular networks. This means travel agents can take advantage of global acceptance without paying extra for cross-border transactions or foreign exchange fees.
The system also offers detailed reporting tools. Finance teams can view transactions by supplier, date, booking ID, or service category, helping them identify irregularities or opportunities for cost reduction. For travel companies looking to reduce reliance on wire transfers or minimise human error, Wallester’s solution combines speed, increased security, and operational control.
Level up your travel business with Wallester
For online travel agencies, efficiency is everything. Managing thousands of bookings and payments each day means even small improvements can have a big impact on cash flow, customer satisfaction, and profitability.
Wallester gives travel agents the tools to modernise how they handle supplier payments. Instead of patching together outdated systems, travel businesses can issue virtual cards, track spending, and reconcile transactions through one connected platform.
This allows them to:
- Eliminate additional costs tied to traditional payment methods
- Avoid delays caused by slow or manual processes
- Improve spend management by assigning payments to specific bookings or departments
- Open up new revenue streams through improved data, policy compliance, and vendor negotiations
- Protect customer funds with secure, trackable payments
For OTAs looking to improve how they manage supplier payments, Wallester’s virtual card solution offers a more structured and adaptable approach that supports growth without adding complexity.
