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Because of the volume and complexity of transactions made by higher education institutions, colleges and universities have become attractive targets for fraud. As cybercriminals grow more sophisticated, universities face a new wave of cyber-attacks that are harder to detect and more damaging than ever before.
Virtual card programs can strengthen your payment fraud prevention and give you more granular control over even small purchases. As a bonus, the right virtual card program can also provide transaction rebates that generate new unrestricted revenue for institutions.
A virtual card program allows institutions to generate unique, digital card numbers for specific supplier payments. Instead of issuing a physical credit card or sending a check, AP teams create a temporary card number tied to a single transaction or supplier.
Each virtual card includes built-in controls such as payment amount limits, merchant restrictions, and expiration dates. Once the transaction is processed, the card number becomes inactive. Because these card numbers are generated electronically and used for specific transactions, they reduce the exposure of sensitive financial information while improving payment tracking.
Virtual cards also integrate easily with digital financial systems. Payments can be issued once an invoice is approved, creating a streamlined workflow that aligns with modern procure-to-pay operations.
Universities often rely on several traditional payment methods, including paper checks and bank transfers. While these options have long been part of institutional finance operations, they can create vulnerabilities that attackers attempt to exploit.
Virtual card programs introduce controls that reduce many of these risks while improving payment visibility.
Payment Challenge | Traditional Payment Methods | Virtual Card Program |
Check fraud | Paper checks can be intercepted, altered, or duplicated during mailing or processing. | Virtual cards eliminate paper checks entirely, reducing the opportunity for interception or alteration. |
Vendor payment redirect scams | Fraudulent emails may convince staff to change supplier bank details for ACH payments. | Virtual cards do not require sharing bank account numbers, reducing the risk of payment redirection fraud. |
Exposure of banking information | ACH payments require storing and transmitting institutional banking details. | Virtual card numbers are temporary and transaction-specific, limiting exposure of sensitive financial data. |
Lack of transaction controls | Some payment methods allow limited restrictions on where and how funds are used. | Virtual cards can include merchant restrictions, expiration dates, and spending limits. |
Payment tracking and audit visibility | Tracking check payments or bank transfers can require manual reconciliation. | Virtual card programs provide digital records that simplify auditing and reporting. |
These controls make virtual cards a valuable tool for strengthening payment fraud prevention while simplifying payment workflows.
A virtual card program typically operates within the accounts payable process after invoices are reviewed and approved. Once an invoice is validated, the AP system generates a virtual card number for that specific payment. The card details are then transmitted to the supplier, who processes the payment through their existing card acceptance systems.
Because the card number is limited to a specific transaction amount and vendor, the payment cannot be reused or redirected. For finance teams, the digital nature of virtual card transactions simplifies reconciliation. Payment data flows directly into financial reporting systems, allowing staff to track payments, reconcile expenses, and monitor supplier activity.
Virtual cards also reduce reliance on paper checks, which can be labor-intensive to create and track.
In addition to improving security and efficiency, virtual card payments can generate financial returns for universities.
Some virtual card providers also provide rebates for using virtual cards. When a vendor accepts credit cards or virtual cards, it pays an interchange fee to the card network, like Visa or Mastercard, for processing. The card issuer receives a portion of that fee. With the right partner, you share in that portion. For example, on spending of $1 million, a 1.5% rebate would return $15,000 a year.
The biggest hurdle here is getting vendors to accept cards. That’s why working with a managed virtual card program can help. They can compare your vendor list with vendors who already accept virtual cards and contact vendors on your behalf to switch from paper checks to virtual cards.
For universities managing large purchasing volumes, these rebates can represent meaningful financial value. Instead of payment processing being purely an administrative function, virtual card programs allow accounts payable operations to generate new unrestricted revenue.
You can access virtual card programs through E&I Cooperative Services’ cooperative agreement with Corpay.
E&I is the only member-owned, nonprofit sourcing cooperative focused solely on education, combining the purchasing volume of more than 6,400 member institutions to produce significant volume discounts and exclusive deals. In this case, Corpay offers E&I-exclusive rebates to members based on transaction volume.
Corpay also includes payment fraud prevention with internal controls, audit-ready reporting, and secure validation for vendors and transactions.
Explore the Corpay contract through E&I Cooperative Services and see how a virtual card program can strengthen your procurement and payment process.