When it comes to virtual cards, what’s the difference between the “expiration” and “valid through” dates, especially when oftentimes they display different dates?

Virtual Card Expiration Date

The expiration date typically indicates the final date on which the virtual card can be redeemed or charged. After this date, the virtual card becomes inactive and can no longer be used. In most cases, vendors can redeem a virtual card by accessing a secure link automatically emailed to them once the payor issues the payment.

Virtual Card Valid Through Date

The valid through date is often set earlier than the actual expiration date, representing the preferred or recommended date by which the vendor should process the payment. It might align with payment terms or internal processing timelines but is usually flexible. Payments can typically still be processed until the true expiration date, even if the “valid through” date has passed.

Essentially:

  • Valid Through = Recommended or ideal usage date.
  • Expiration = Firm, final date for card usability.

Expiration Dates and Payment Terms

So how do these dates apply to your payment terms?  If you have set payment terms with your vendors (e.g. Net 30), the virtual card expiration date is typically independent to those terms and acts primarily as a security feature to ensure unused funds aren’t indefinitely available.

Even if payment terms aren’t explicitly set, a default expiration ensures the funds don’t remain available indefinitely.

Real Customer Example of Virtual Card Expiration Dates

Virtual card expiration dates can minimize risk and control the redemption window if implemented effectively. Virtual cards typically have a default of 30 days before expiring.  One customer used this redemption period to set a policy for when they needed to make virtual card payments to vendors whom they had not set specific payment terms with.  Following this policy, when paying these vendors, they would default to the expiration date as the payment term, requiring vendors to redeem the payment in 30 days or sooner.  This 30-day payment term was specified within the email containing the access link to the virtual card, so vendors can see how long they have to redeem the payment.

Quick Summary:

Term Meaning Typical Usage
Valid Through Recommended date by which to redeem card Flexible; often aligned with terms
Expiration Date Absolute last date the card can be charged Strict; card unusable after this date
Default Expiration Standard redemption timeframe (30 days) Used if no explicit payment terms

Bottom line: The “valid through” is recommended but flexible; “expiration” is the final cutoff, typically set to 30 days by default in some organizations’ systems, independent of specific vendor payment terms.