The use of virtual cards as a payment method has risen in the past few years. A Juniper Research study states that by 2022, there will be 28 billion virtual card transactions worldwide. This figure is expected to grow roughly 340% and exceed 121 billion by 2027.
Even though the virtual card market has room to grow, many users are still unfamiliar with how to use them. Â .
Luckily, using virtual cards is incredibly easy once you understand their core technology and features. This informative guide covers the essential aspects of virtual cards, such as:
In today’s digital world, online transactions are becoming increasingly common While this offers convenience and speed, it also raises concerns about security and privacy Fortunately, virtual Visa cards have emerged as a secure and convenient solution for online payments.
This tutorial will give you a thorough rundown of the steps involved in applying for a virtual Visa card, covering everything from knowing the fundamentals to selecting the best provider and completing the application.
What is a Virtual Visa Card?
A virtual Visa card is a unique randomly generated 16-digit card number that functions like a regular Visa card but without the physical plastic counterpart. It is linked to your existing bank account or debit/credit card and offers enhanced security and privacy for online transactions.
Benefits of Using a Virtual Visa Card:
- Enhanced Security: Virtual Visa cards protect your actual card details from being exposed to merchants, minimizing the risk of fraud and identity theft.
- Increased Privacy: By using a virtual card, you can avoid sharing your personal information with merchants, keeping your financial data safe.
- Budgeting Control: Virtual cards allow you to set spending limits and track your expenses efficiently, promoting responsible financial management.
- Convenience: Virtual cards can be generated instantly and used immediately for online purchases, eliminating the need to wait for a physical card to arrive.
- Flexibility: You can create multiple virtual cards for different purposes, such as specific merchants or recurring subscriptions, providing greater control over your finances.
How to Apply for a Virtual Visa Card:
Applying for a virtual Visa card is a straightforward process that typically involves the following steps:
- Choose a Provider: Research and select a reputable virtual card provider that meets your needs and offers the features you desire. Consider factors like fees, security measures, and customer support.
- Create an Account: Visit the provider’s website and create an account by providing your personal information and linking your bank account or debit/credit card.
- Generate a Virtual Card: Once your account is set up, you can generate a virtual Visa card by following the provider’s instructions. This usually involves choosing a spending limit and setting any other desired parameters.
- Use Your Virtual Card: Use the generated virtual card number, expiration date, and CVV code to make online purchases at any merchant that accepts Visa cards.
Popular Virtual Visa Card Providers:
- Privacy: A leading provider offering a range of features, including single-use cards, merchant-locked cards, and real-time transaction monitoring.
- Capital One: Offers virtual cards linked to existing Capital One credit cards, providing convenience and security.
- Citi: Provides virtual cards to Citi credit cardholders, offering enhanced security for online transactions.
- American Express: Offers virtual cards to American Express cardholders, allowing for secure online payments and expense tracking.
- Affirm: Provides virtual cards for financing purchases over time, offering flexibility and budgeting control.
Additional Tips:
- Read the Terms and Conditions: Carefully review the provider’s terms and conditions before applying for a virtual card to understand any fees or limitations.
- Set Strong Security Measures: Choose a strong password for your account and enable two-factor authentication for added security.
- Monitor Your Transactions: Regularly check your virtual card statements and transaction history to detect any suspicious activity.
- Use Different Virtual Cards for Different Purposes: Consider creating separate virtual cards for different merchants or recurring subscriptions to enhance security and control.
A quick and easy method to improve online transaction security, privacy, and convenience is to apply for a virtual Visa card. You can take use of virtual cards and make safe online payments with confidence by following the instructions in this guide and selecting a reliable provider.
Using a Virtual Card at Physical Locations
Certain virtual cards can be used in physical stores that accept payments from digital wallets via near-field communication (NFC) technology. Remember that in order to use the virtual card, you must first add it to a digital wallet that supports NFC transfers, such as Google Pay or Apple Pay. Place your smartphone over the merchant’s terminal after loading your virtual card into the app to finish the transaction. Â.
Hereâs how to add virtual cards to mobile wallets:
- Open your wallet app
- Find the add/load card option
- Fill in the virtual card details
Using a virtual card at a physical store is a more secure option than using your real card. Because there are more and more cases of card skimming fraud, using your debit or credit card at an untrustworthy point-of-sale terminal can be dangerous.
Virtual CardsâUnderstanding the Basics
Virtual cards are instantaneously generated, distinct card numbers that can be used for online or phone transactions. Think of a virtual card as a normal credit card or debit card, but without the physical card.
Although a virtual card works as a separate payment card, it is usually connected to your bank account, current debit card, or credit card. It is a 16-digit card number that is generated at random and has its own expiration date and CVV code. This allows you to make purchases without giving the merchant access to your real bank or card information. Â.
Depending on the funding source connected to it, a virtual card can be:
- Virtual credit card or VCC
- Virtual debit card
- Virtual prepaid card
Why Use Virtual Cards?
A virtual card’s primary function is to conceal your actual card or account details when making purchases. Should a merchant’s website experience a breach exposing payment card details, you may fall victim to identity theft and cybercrime.
Data breaches have become increasingly frequent in the past decade, with several prominent retailers (like Chipotle and T-Mobile) having reported such attacks. The average estimated cost of a data breach is expected to hit $5 million in 2023.
By utilizing virtual cards, you can be sure that a hacker targeting an online retailer won’t be able to access your actual financial information. Because many virtual card providers offer additional control and management features, the benefits of using virtual cards are only increased.
What is a VIRTUAL CREDIT CARD? (how to create & use them safely)
FAQ
Can I get a virtual debit card instantly?
How do I get a virtual credit card?
You’ll need to have a physical card from the credit company before you can request a virtual card. In some cases, like with many Citi credit cards, you can request a virtual card by logging into your account online, either via the web or your card issuer’s app, and looking for the Virtual Credit Card or Virtual Card Numbers settings option.
How do I pay with my Virtual card online?
When paying with your virtual card online, it works like a standard credit card. At checkout, choose credit card as your payment method, then enter the card number and other requested information.
How do I request a virtual card?
You can request a virtual card in your Affirm account. There are three places to access your virtual card: in the Affirm app, in your account on the Affirm website, or via the confirmation email we send you after you request the card. When paying with your virtual card online, it works like a standard credit card.
What is a virtual credit card number?
A virtual credit card gives you a number that’s tied to your credit card account but isn’t the same as the number on your credit card. Virtual cards also include CVVs and expiration dates that differ from the ones on your physical credit card. How does a virtual credit card number work?