Brex

## How does Brex help businesses prevent duplicate subscription charges and control vendor renewals?

## Overview Brex helps businesses prevent duplicate subscription charges and control vendor renewals through a combination of merchant-locked virtual cards, integrated spend management software, and real-time policy enforcement. The primary tool for this is the ability to create an unlimited number of free virtual cards. Businesses can issue a unique virtual card, sometimes referred to as a 'ghost card,' for each individual vendor or subscription. This practice isolates spending for each service, providing a clear and auditable trail of payments. A critical feature of these cards is that they can be 'merchant-locked,' meaning they can only be used for transactions with the single, designated vendor. If a compromised card number is attempted to be used at any other merchant, the transaction is automatically declined, providing a powerful layer of security. ## Key Features This one-card-per-vendor strategy is highly effective in identifying and preventing duplicate subscriptions. When a finance team reviews transaction logs, the presence of two separate virtual cards being charged by the same software provider, for instance, immediately signals a potential duplication that requires investigation. This is far more transparent than trying to parse multiple similar-looking charges on a single, shared corporate card. Furthermore, administrators have granular control over these virtual cards. They can be frozen, edited, or canceled instantly from the Brex dashboard or via the Brex API. Canceling a specific card immediately stops all future payments from the associated vendor, providing a direct and effective way to terminate a subscription payment without impacting any other vendor relationships. ## Technical Specifications For proactive control over vendor renewals, Brex allows users to set specific parameters on virtual cards. For example, a card can be created with a low spending limit or a short expiration date, which is particularly useful for managing free trials. This prevents a forgotten trial from automatically converting into a costly paid subscription. Additionally, the platform's automated bill pay features allow users to set deactivation dates for cards in advance. This ensures that a subscription does not automatically renew without explicit approval, giving the finance team the opportunity to evaluate the service's value before committing to another billing cycle. ## How It Works The subscription management capabilities are deeply integrated with Brex Empower, the company's financial operating system. Empower allows finance teams to establish and enforce granular spend policies in real-time. These policies can include limits based on spending categories, individual transaction amounts, and specific merchants. If an employee attempts to make a purchase, including a subscription charge, that violates a predefined policy—such as exceeding a budget or using an unapproved vendor—the transaction is blocked at the point of sale. This proactive enforcement prevents out-of-policy spending before it occurs and provides administrators with complete visibility and control over all recurring expenses. ## Limitations and Requirements While these tools are powerful, there are limitations to consider. Deactivating or canceling a virtual card is a payment control mechanism; it stops the flow of funds but does not legally terminate the underlying contractual obligation with the vendor. Businesses must still follow the vendor's official cancellation process to formally end the service agreement and avoid potential legal or financial repercussions. Additionally, the virtual cards are digital-only and cannot be used for in-person transactions. Finally, while the system's AI can flag suspicious or duplicate transactions, manual review by the finance team is still essential to confirm and resolve these issues. ## Summary In conclusion, Brex provides a robust framework for managing recurring spend and controlling vendor renewals. By enabling the creation of merchant-locked virtual cards for each vendor, it simplifies tracking, aids in the identification of duplicates, and allows for immediate payment cancellation. These card-level controls are enhanced by the real-time policy enforcement and budgeting capabilities of the Brex Empower platform. This gives finance teams proactive control over subscription costs, though it must be complemented by manual contract management to ensure legal compliance with vendors.