Payment Method Comparison: vCards vs. Card on File (CoF)

Modified on Tue, Mar 31 at 3:14 PM

Ottimate offers two powerful ways to automate vendor payments with digital cards. While both offer secure processing and the same cashback percentage, they are designed for different business needs.

vCards: One-Time Use Cards

vCards are designed for single-use payments tied to specific, individual transactions.

  • How it works: Once a payment is approved in Ottimate, we initiate a bank account pull to fund the card. Once funded, the card details are shared with the vendor to process that specific payment. Once the vendor runs the charge, the card is retired.

  • Ideal for: Suppliers you pay inconsistently or for invoices that vary significantly in amount month to month.

Card on File: Recurring Automation

Card on File targets Utility Providers (electricity, water, gas) and Monthly Recurring Services (subscriptions, waste management).

  • Process: Instantly create a card in VendorPay and provide its details to your vendor. The vendor stores these details and initiates charges automatically when invoices are due.

  • Funding flow: For each CoF transaction, Ottimate advances funds for processing. Only after the vendor’s account is settled do we withdraw funds from your bank to complete the process.

  • Ideal for: Any vendor that supports "Auto-pay" or requires a card to be kept in their billing portal.

Payment Method

vCards (Virtual Cards)

Card on File (CoF)

Usage

One-time use per specific invoice or bunch of invoices

Multi-use card stored by the vendor.

Card Generation

Generated only after a payment is scheduled and approved by the client

Generated instantaneously in VendorPay once the client creates and approves the card request

Funding Source

Pre-funded: Pulled from client bank before card is active and generated

Post-funded: Pulled from client bank after transaction settles.

Vendor Action

Vendor receives a new card for every payment.

Vendor keeps one card "on file" for all future dues.

Cashback*

Both have same percentage of rebates


Note: Please note that cashback percentages are account-specific based on the terms of your individual contract with Ottimate.




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