A Virtual Card is a set of two numbers and other details, similar to those of a physical card. To get a virtual card, you use your card issuer’s software to generate it. You can use those numbers instead of the actual card number and CVV2 code of your physical card.

You can use your virtual card, just as you would a physical card. The only exception is that you cannot use a virtual card to swipe. That limits its usage to online transactions only. Read on to learn more about Virtual Cards.

Virtual Card

Benefits of Virtual Cards

  • Virtual cards do not reveal your actual banking details.
  • You can generate virtual cards for one-time payments.
  • Virtual cards can protect you from the dangers of data breaches.
  • For some virtual cards, you can choose a “recurring option” that allows you to reuse the card.
  • In case of a data breach, you just close the virtual card attached to the affected platform.

Shortcomings of Virtual Cards

  • You cannot swipe a virtual card since they are just numbers.
  • In case you need to file a chargeback, you cannot use a virtual card.
  • You cannot swipe/insert a virtual card to receive a refund from a physical store.

How does a virtual card work?

When you create a virtual card, what you receive is a card number, CVV code, as well as a start and expiry date. You can then use those details in any online platform to pay for goods or services. In that regard, a virtual debit card works the same way as a physical debit card.

However, the virtual card numbers generated when you create one are simply digital tokens. They are used by a payment processor and your bank, to validate a transaction you are about to make. Once the transaction is approved, they cannot be used to verify a new transaction.

What is a virtual debit card?

A virtual debit card is a virtual debit card that allows you to spend what you have in your bank account. It offers you a secure and safe way to spend your money without revealing critical banking details to your online merchant.

Since a virtual debit card is just a set of numbers, you cannot swipe it. You can only enter those numbers in a form when making online payments.

What is a virtual credit card?

A virtual credit card is similar to a virtual debit card. However, you can use it to buy goods and services on credit. It also offers you the added benefit of hiding your critical banking details from online merchants.

Once you pay with a virtual credit card, a fraudster cannot use it to make purchases.  While the virtual card routes the charges to your physical credit card, it does not reveal your personal banking details. That makes them ideal for use with merchants you are yet to trust.

How do I get a virtual credit card?

You can get a virtual credit card from your physical card issuer or bank. While not all banks and card issuers support virtual credit cards, the leading ones do.

Do you need help creating a virtual credit card? Contact us now, we can help you get your virtual credit card.