What is a Virtual Debit Card: Everything You Need to Know
Did you know that 2019 saw over 3,800 data breaches that compromised billions of records? This is an alarming number demonstrating that we’re in an era of data breaches and online security threats.
This doesn’t prevent people from wanting to shop online. So you might be looking for a way to spend money over the internet without compromising your personal information.
One solution people have found is a virtual credit card. This type of card gives you a unique number that’s tied to your credit card account and may help protect you from fraud.
Read our guide below to learn more about virtual cards and help determine if it’s right for you!
Virtual Payment Cards: A Definition
A virtual card can be a virtual credit or debit card and is not a physical or plastic card. These cards provide you with a set of sixteen numbers that are like a credit card number and include a CVV number. They’re generated randomly and can be used to make cashless exchanges from business to business.
Virtual credit and debit cards are similar. A virtual credit card can be used online or by phone, to buy goods and services.
How Does a Virtual Payment Card Work?
The card functions by routing the charges on the virtual card to the original credit card number, but cannot be traced back to the original card. Like a physical credit card, charges may include interest.
A virtual debit card differs from a virtual credit card because the randomly generated number is linked to a debit account. Again, the purchases can only be made remotely and not in-person. The charges from a virtual debit card will be taken from an account balance that it’s tied to, but hackers won’t be able to trace it back to the original account.
But you might be wondering who is able to get a virtual card to make purchases.
Virtual Payment Card Security Measures
To use these cards, you can download the software to your computer that will be provided by the card issuer. This will allow you to generate the random numbers needed for the card. You can also assign spending limits.
Virtual debit or credit cards might be used only once, depending on the lender, and they may expire if they aren’t used. If a purchase is made and there’s still a balance on the virtual card, it’ll be credited back to the original account.
This system prevents virtual cards from being cloned. In other cases, you can decide the number of transactions you plan on using the virtual card before it expires.
Who Can Get a Virtual Payment Card?
Individual consumers have been using virtual cards in the past, but it’s a relatively new decision for businesses. Virtual credit cards are becoming popular among businesses. These cards help to prevent fraud when making online purchases.
Since the numbers on a virtual card are not the actual credit card numbers, they’re not attractive to hackers and thieves. It also stops employees from using the card to make unauthorized online purchases.
Using these virtual cards for your business can also help you cut the need for checks, invoices and buy orders. This can save you time and money.
But how do you actually get a virtual card?
How Can You Get a Virtual Payment Card?
Most major credit card companies and other sources now offer virtual cards. Once you’ve signed up to be issued a virtual card, you can use the string of digits you’ve been given to make purchases online.
The main benefit of these cards is that if they do get compromised, you can delete or lock them very quickly and switch to using your main credit card number. This offers a lot of cardholders some peace of mind while shopping online.
How to Pick a Payment Card
A major question for any credit card holder is whether they are able to handle carrying a balance and paying it back. The average credit card interest rate is 19.02%, with an APR at 18% so the interest rate may affect your decision.
Create a budget and ensure you’ll be able to afford the monthly payments to meet your balance requirements. With a virtual card, businesses can set limits on the amount an employee is able to spend and can create alerts for payments. A virtual business card may help reduce the chance of overspending.
Deciding between a virtual credit card and a virtual debit card also depends on your business needs. Some prefer a virtual credit card for the rewards they can get from the card company. But since a virtual debit card is pulling from an account, it prevents the chance of spending more than you can afford.
BlockCard provides you with a physical debit card that’s powered by Ternio, and you’re able to have control over your money and account. You can use the BlockCard website and app to securely make purchases online.
The BlockCard website functions similarly to a native application and can be launched on a computer or your mobile device.
Also, the BlockCard app, which can be downloaded onto your phone, allows users to send and track cryptocurrency spending. It enables you to send instant payments to anyone with just an email address.
A major reason why people choose BlockCard is that there are no fees for transactions, exchanges or deposits. So you just pay one flat monthly rate, and for a lot of users, it’s waived simply by using BlockCard.
The Bottom Line
Virtual cards are easy to use since they’re charged in the same way as a credit or debit card. A virtual card can also serve as a buffer between your real account or credit card information.
So if you’re concerned about data breaches and your privacy, a virtual credit card might be right for you and your business.
Register for a BlockCard today to get started using a virtual card and seeing the benefits of this secure system of online payment!