How Virtual Visa Cards Can Help To Prevent Fraud And To Reduce Your Risks
Virtual cards are a great way to prevent fraud and to reduce your businesss risk of becoming a fraud victim. Since the numbers only represent your underlying account but cannot be used to access it, they are useless to thieves even if they happen to steal them.
Virtual cards can also protect you by allowing you to restrict their use to specific merchants in set amounts. Once the cards are used, they will not work. Your employees cant use the cards to make purchases elsewhere for themselves.
When Is It Better To Buy A Physical Visa Card
If the online company you are purchasing from does not offer their own egift cards, then it is better to have a Physical Visa Card since it will be very unlikely that the amount you are spending at the online company will be the same as the amount of your Virtual Visa gift card. As previously stated, if the amount you are spending online is higher than the amount of your Virtual Visa gift card, your Virtual Visa gift card will be rejected. If the amount you are spending online is lower, your Virtual Visa gift card will be accepted, but you will still hold a balance on your Virtual Visa gift card and this balance may be difficult to spend online e.g. you could end up with a balance of $9.73 on your Virtual Visa gift card. In that situation, I would use the $9.73 to buy an Amazon gift card, which can be used for any Amazon purchases.
I hope the above clarifies the differences between a Physical Visa Gift Card and a Virtual Visa Gift Card.
You may be interested in reading, How to Save Money When Shopping Online.
Virtual Credit Cards Faq
Where Can Virtual Credit Cards Be Used?
Your virtual credit cards can be used for online purchases with any Canada and international online retailers that accept such payment method.
Why Is It Called Virtual?
The virtual card can only be used where a card is not required to be physically presented to the merchant.
Can I Use My Virtual Credit Cards As The Normal Credit Card?
The virtual credit card reference card does not have a magnetic stripe or pin or chip and cannot be used at ATM or store. It can only be used for online transactions.
Can I Use Virtual Credit Cards For Purchases Other Than Online Purchases?
Yes. Your virtual credit cards can be used for telephone and mail order purchases.
What Information Does My Virtual Credit Card Contain?
The information on your virtual card is all you need for online, phone, or mail order payments. They are:
- Your virtual credit cards number
- The validity or expiry date
- The name of the account holder.
Virtual credit cards are meant to give you some level of financial security and rest of mind when making online payments, but they can only be used for online shopping.
Read Also: How To Cancel Jcpenney Credit Card
Best Virtual Debit/credit Cards In 2021
- Post last modified:October 14, 2021
According to Forbes, virtual cards could eventually become universal among businesses.
Whats so good about Virtual debit/credit cards? First, they are practically impossible to be stolen. Plus, they act as a buffer between your real card and funding source, which gets you another layer of security. You can control spending, and cut costs.
Theres also convenience and simplicity.
What are Virtual Debit or Credit Cards? Virtual credit/debit cards work just like physical cards, except they only exist online. A virtual card provider will generate a virtual payment card instantly for you through a website or a mobile app, which you can use for online payments almost everywhere. You can usually get them for free from many of these companies.
Ive personally checked and examined all virtual cards and providers in this list, and here are the best ones. Also note that all of these cards are available in the US.
Most Common Uses Of Prepaid Virtual Credit Cards
With the rising concern about the jeopardized safety of using real credit cards online, virtual credit cards are gaining more and more in popularity. As time goes by, they are likely to become even more popular and much more common, so its a good idea to jump on the bandwagon as soon as possible.
You can use a prepaid virtual credit card for:
When it comes to free trials, in particular, youll be happy to hear that you can have a wide range of services at your disposal when using a virtual credit card.
For instance, you can use DoNotPays Free Trial Card to sign up for a Netflix free trial and have peace of mind while watching your favorite TV series, knowing you wont be charged if you choose not to continue using the service after the free month.
Netflix will send you an email as a reminder when the free trial period is nearing its end, but what if you miss it and forget to cancel the subscription? You dont have to worry about any of this when you use our solution. DoNotPays Free Trial Card is at your disposal for a wide variety of other services as well, such as:
Also Check: Cabelas Visa.com
Subscriptions And Virtual Credit Cards
In case you have any ongoing subscriptions that you would like to continue using, consider paying for it with your permanent card. Subscriptions often require monthly or quarterly renewals. If you paid with your VCC and you forget to update the details, your subscription may get canceled.
You can set up a virtual card just for that service provider, so you dont have to disclose your actual account details. Our advice is to leave the expiration date to one year from the beginning of the subscription. That way, you dont have to bother with generating a new VCC every month.
Check out the table below for an overview of the pros and cons of virtual credit cards.
Upsides of using a VCC
|Downsides of using a VCC|
|Protects your account and personal details||
Not suitable for in-store shopping
Allows you to set limitations according to your preferences
Not suitable for setting permanent accounts with online service providers
How Virtual Credit Cards Work
The temporary card number generated for use in online transactions helps protect the data of users against unauthorized third-party access, and thus reduce the possibility of credit card frauds.
As an online shopper, every time you make purchases online the virtual credit card provides you with unique and dynamic credit card information for each of your transactions.
The majority of online retail shops and merchants store the payment information of their customers. The reason for this most of the time is to ensure that users do not go through re-entering their information every time they make payments.
One significant challenge with this, however, is that cyber thieves, known as hackers, are always looking to gaining access to this data. The hackers then steal your identity and credit card information to commit fraud.
However, virtual credit cards aim to solve this security problem by generating a new credit card number or token that you can use for any of your online transactions.
Every transaction has its own generated set of numbers, hence, its storage and theft are useless to hackers. The virtual credit cards create a token for every purchase to prevent data storage and unauthorized usage of your static or plastic credit card data.
You May Like: How Do I Check My Cabela’s Credit Card Balance
How Virtual Visa Cards Can Eliminate Expense Reimbursements
One great feature of using virtual cards to make purchases at your company is that you can eliminate expense reimbursements. You can generate a virtual card number and give it to an employee to use to make a needed purchase instead of asking him or her to use his or her own money.
Ending reimbursements can help both you and your employees. The employees will not have to wait for their reimbursement requests to be processed before they are repaid. You will not have to worry about your employees padding their reimbursement requests or submitting requests for personal purchases.
Visa Travel Card Features
- 24 hour cash access. Use your Travel card to make purchases worldwide at merchants that accept Visa or obtain local currency at any ATM that displays a Visa symbol.
- Variable purchase amounts. Visa Travel cards can be purchased in any amount .
- Multiple Cards. You can purchase additional cards that allow you to access the same funds. Each additional card will have its own unique PIN. You can give them to travel companions, or keep them as instant replacement cards in case your card is lost, stolen or damaged.
You May Like: Credit Card With No International Fee
What Virtual Credit Cards Are Available In Singapore
At the time of writing , personal virtual credit card offerings from local banks and online providers are extremely limited.
If youre a business owner, DBS is currently offering a commercial card named DBS Virtual Card that can help you consolidate and manage your employees corporate expenses without the hassle of issuing separate cards to them. The DBS Virtual Card is basically a centralised online travel account which you can oversee and control employees usage of the companys credit card to prevent misuse. With this card, you may set amount limits and transaction caps, restrict how regularly and where the card can be used and more.
On top of the convenience and control, the DBS Virtual Card also provide additional perks, such as:
- Complimentary travel accident insurance for employees of up to S$1 million
- Complimentary insurance against employee misuse
- For companies holding two or more DBS Virtual Cards: Complimentary annual coverage of employee misuse up to US$25,000 per cardholder and US$1.65 million per company
Aside from DBS, WEX Inc is another provider offering virtual credit card services for companies. Another alternative to personal VCC would be dynamic security codes, which are randomly generated one-use only CSC/CVC/CVV.
Can I Use A Virtual Visa Card On Amazon
You can use a prepaid Visa gift card to make purchases on Amazon, but you have to work around the system to make it happen. Amazon will not allow split payments between gift cards loaded onto an account and other payment methods, so you have to line up the price of your purchases with your gift card balance.
And The Disposable Virtual Card
Whilst your Revolut virtual card can be stored and used over again, a disposable virtual card ups the security for one-off uses. These can be regenerated as many times as you require, each time with a new unique card number meaning that your actual card details are never shared with vendors.
Instead, vendors receive surrogate card information. This is generated in seconds and is linked to your Revolut account.
How To Get A Virtual Credit Card
Don’t Miss: How Do I Check My Cabela’s Credit Card Balance
How Do Virtual Credit Cards Work
Your virtual credit card generates a new number for each transaction you make. This number isnt stored, and it cant be used again.
In most cases, youll set up a virtual version of an existing credit card, which means theres no credit check or application involved.
You can request as many virtual card numbers as you want .
Each card servicer has a slightly different system, but usually, youll get one of two types of VCCs:
- Single-use VCCs, or numbers that expire after a single transaction.
- Recurring-use VCCs, or numbers you can store and use more than once . Recurring VCCs are just as secure since they still dont link to your real credit card data.
Some card issuers let you pick expiration dates for VCCs up to a year after the creation date others choose expiration dates for you. And your card issuer may let you determine maximum spending limits for each VCC as well.
When To Use Donotpay Virtual Credit Card
If youve had negative experiences with free trials before and youre hesitant to start a free trial because you fear getting charged automatically after it ends the DoNotPay Free Trial Card is the perfect option.
When a service provider requires you to enter your credit card number, all you need to do is enter the virtual card number DoNotPay provides you with, and youre good to go. That way, they wont have access to your banking information, so even if you forget about the expiration date of the trial period, they cannot charge you.
Another convenience with DoNotPay is that it can also generate a temporary email address for you to use. Just like the card, this will be a random email address that you can leave if you want to be free of spam emails. When you have a virtual card, why wouldnt you use a randomly generated email, too? This is another piece of information that service providers and merchants will require you to provide.
Not only do you get peace of mind knowing that you didnt leave any of your real info, but you also avoid being put on an email marketing list.
You May Like: Vanilla Visa Online
Features Of The Best Virtual Visa Cards
When you are shopping for a virtual card, there are some features that can offer you more benefits. Look for cards that come with the ability to control when and where the cards can be used. The cards should also let you set the spending limits that you choose.
The best virtual cards should be debit cards so that the purchases will be subtracted from your account, giving the spending greater transparency. You should not be charged high rates of interest or high annual fees.
How To Use A Virtual Prepaid Visa
In many European countries people pay for virtual prepaid Visa cards. These cards may only be used for online and phone purchases. You will not receive an actual card. Rather, the virtual prepaid card issuer gives you the details of your card account including the card number, expiration date and security code number. The issuer may also provide you with an image of the card in an e-mail for use, or you will receive a cardboard or plastic card for reference.
Contact the issuer who offers virtual prepaid Visa cards. Decide on the amount you want automatically loaded on the card and accept the issuer’s terms of service. Receive the details from the issuer on how to use the card either over the phone, on the issuer’s Web page or in an official e-mail.
Shop online with your virtual prepaid Visa card. Select your purchase and go to the payment and billing stage of the Web site’s purchase page. Fill out the billing information with your name, address, telephone number and e-mail address. Provide additional information if you want the item shipped to a different address from the billing address.
Choose the type of payment you plan to use for the purchase. Select Visa as the card type and place in the card’s number, expiration date and security code number in the boxes provided. Double-check to make sure all information is correct before pressing the “Submit” button to allow your payment to be processed.
Don’t Miss: Credit Card Reconciliation Template
Can I Use A Prepaid Debit Card To Pay For Things Like Itunes & Google Play
iTunes and Google Play require a credit or debit card issued in a country like the USA or the UK. Many people cannot pay for these services from their countries. An international virtual Prepaid debit or credit car with a billing address in the UK or US will allow you to pay for iTunes or Google Play.
How Do You Shop With A Virtual Credit Card
Shopping with a VCC is a little more complicated than shopping with your regular digits, but not super complicated.
Since theyre not physical or swipeable, VCCs can only be used for online shopping or phone transactions. But they should be accepted anywhere you can pay with your regular card online.
Also Check: Cabelas Visa Card Status