Virtual payment

A single-use virtual card or payment token tied to a specific booking for control and security. Because the card number is generated for one transaction and expires after use, it limits the risk of misuse compared with a standard reusable card number. Virtual payments are increasingly used for hotel and TMC settlements where a physical or reusable card isn't practical.

A virtual card has a card number, expiry date and security code, but no physical card. It can be created for a specific booking, supplier and amount, and can be limited to a set date range or merchant type. For hotels, the virtual card details are usually sent to the property along with the booking, allowing the hotel to charge the agreed amount directly. Many virtual card solutions also attach booking data to each transaction, making reconciliation easier. Virtual cards are also used by travel providers to pay suppliers on behalf of their clients.

Virtual payments offer strong control and security. Because each card is used for a single purpose, the risk of fraud or unauthorised charges is minimal, and it is easy to match payments to bookings. They also remove the need for employees to use their own cards for hotel stays. Challenges include hotels that are not familiar with virtual cards, and the need to clearly communicate which charges the card covers — for example, room and taxes only.

Tumodo addresses the same goals through its central payment model. Services booked on the platform are paid by the company under its agreement with Tumodo, so travellers do not need to present cards for prepaid bookings. Each booking is linked to a trip, invoice and accounting documents, making reconciliation straightforward. Documents can be exchanged via EDI or integrated with accounting systems such as SAP and Oracle. The dedicated account manager helps set up the document flow.