Comparison of Virtual Cards and ACH Payments Security

This report presents findings from the 2024 AFP Payments Fraud and Control Survey, focusing on the security aspects of virtual cards and ACH payments. It outlines the differences in fraud risk associated with each payment method. The report indicates that only 3% of fraud attempts in 2023 involved virtual cards, while 33% targeted ACH debit payments, with 19% aimed at ACH credit payments. It highlights that virtual cards have a low incidence of targeting and faster fraud recovery due to built-in protections. In contrast, ACH payments are more vulnerable to fraud, particularly from Business Email Compromise (BEC), with a reported 13% increase in ACH fraud from 2022 to 2023. The report details the customizable features of virtual cards, such as one-time use and spending limits, which enhance security. It emphasizes the importance of real-time fraud detection with virtual cards compared to the batch processing of ACH payments, which complicates timely fraud prevention. Businesses are encouraged to evaluate their security needs when selecting a payment method.