The problem
Insurance companies need to pay claims quickly, accurately, and cost-effectively. Traditional payment avenues like checks and ACH can be slow, labor intensive, and cumbersome to adapt to digital experiences. As claims are tied to financial and customer management and policy systems, the reconciliation of payouts is a constant challenge.
The solution
Virtual cards provide a more efficient and less expensive way to settle claims and provide policyholders with faster payouts. Dynamic spend controls and clear transaction data allow virtual cards to create a more controlled environment for claims payouts, fraud prevention, and accelerated reconciliation.
Real world: insurance claims
Disbursements for auto, home, and rental claims
Claim filed
You receive a claim from a customer.
Claim paid
A single-use virtual or physical card is issued through the Marqeta platform to pay a specific repair shop for the estimated amount.
Card presented
The auto repair shop runs the card just as they would any Visa or Mastercard.
Spend evaluated
Managed or gateway spend controls can be customized to minimize fraud and ensure funds are only used as intended.
Auth requested
Marqeta’s platform is contacted by the appropriate network for authorization.
Notification received
Marqeta webhooks allow real-time notifications upon transaction completion.
Funds released
Just-in-Time (JIT) Funding releases funds to the card on approval and in real time to complete the transaction.
Transaction completed
Authorization is successful and the payment is confirmed.
Claim filed
You receive a claim from a customer.
Claim paid
A single-use virtual or physical card is issued through the Marqeta platform to pay a specific repair shop for the estimated amount.
Card presented
The auto repair shop runs the card just as they would any Visa or Mastercard.
Spend evaluated
Managed or gateway spend controls can be customized to minimize fraud and ensure funds are only used as intended.
Auth requested
Marqeta’s platform is contacted by the appropriate network for authorization.
Notification received
Marqeta webhooks allow real-time notifications upon transaction completion.
Funds released
Just-in-Time (JIT) Funding releases funds to the card on approval and in real time to complete the transaction.
Transaction completed
Authorization is successful and the payment is confirmed.
How it works
See how Marqeta creates card programs for insurance
Customer Case Study
One of Marqeta’s customers offers affordable, short-term health insurance plans as an alternative to employer or government-subsidized health plans. Users select a plan that works best for them, paying a monthly subscription fee, and are issued a Marqeta card to pay for doctors’ visits, pharmacy expenses, and more.
Because health care providers don’t need to wait for reimbursements from insurance companies to get paid, they can offer discounts to policyholders who are paying upfront with their Marqeta-issued cards — enabling our customer to offer transparent and affordable health care coverage.
Key benefits for insurance
Virtual cards
Provision virtual cards directly to digital wallets for faster payouts.
Push to card
Settle claims by instantly sending payouts directly to an existing payment card. This is faster than ACH and cheaper than checks.
Physical cards
Pay out claims to policyholders on branded cards that can be used anywhere Visa or Mastercard is accepted.
Dynamic spend controls
Control when, where, and how a payment is made (e.g., a virtual card can be used for up to $100 for a tow truck). Recover the balance if the upper limit is not reached.
Zero-balance cards and JIT Funding
Reduce fraud by funding cards in real time to pay expenses such as lodging or repairs upon transaction approval.
Inject metadata into each transaction
Simplify reconciliations by appending metadata such as a claim or policy number to each transaction.
