What is a virtual card and why is it needed?
A virtual debit card is a modern payment instrument, often not tied to plastic analog. You can pay using a smartphone: both on the internet and in traditional places like restaurants, hotels, airports, etc. Each online card has basic parameters: number, expiration date, username, and three-digit CVV2 or CVC2 code. Such a banking product always belongs to one of the payment systems — VISA or MasterCard. The validity of the card can vary from 1 month to 2 years. You can get a payment instrument without leaving your home: just use the online banking service. Virtual debit cards are issued by most modern banks. But why do you actually need it? Let’s find out!
Why do you need a virtual card?
It is hard to meet someone who has not yet appreciated Apple Pay and Google Pay technologies. When making payments, it is much more convenient to use a smartphone than carry a plastic with you and constantly enter a PIN code when paying for another cup of coffee. The owner of an online card can independently set a cash limit, quickly create a foreign currency account, pay abroad, etc. It is easy to create such a card and just as easy to block. For example, you can get a virtual cart on the PayPugs website – https://paypugs.com/
Usually, an online card is issued in addition to the main one, but some banks provide separate digital analogs. It is safe to use it for online payments and purchases: you transfer a certain amount from the main card to a digital one and pay for a product or service. Thus, you do not leave the details of the main bank account anywhere. You can configure your card through online banking using the following security measures:
● limit on debiting funds (per day or per month);
● set the maximum one-time withdrawal sum;
● re-issue it as needed (once a month, a week, or even daily);
● maintain a minimum balance;
● issue it for a specific purchase with subsequent blocking.
Depending on the bank, the set of configurable parameters may differ from the one described: each issuer has its own.
Advantages of virtual cards
This is the main advantage of digital analogs. You minimize the risks of “leaving” your bank details in an unreliable place when making online payments. For instance, you set a limit of no more than $200-$300, sufficient for online shopping. This way you won’t spend more than you planned. And if scammers try to withdraw money from it, they will not get access to the main account. To make online payments even more secure, issue multiple online cards for different purchases. In addition, receiving transfers from unfamiliar people in this way is also much more secure.
Like any bank card, a virtual one helps to pay for purchases and services online around the world, thanks to international payment systems. This is many times more comfortable than shopping with online wallets, through which payments do not pass everywhere.
3. Convenient and fast issuance
You can order an online card in your bank’s mobile application and receive it within a couple of minutes. This will not only save time but also help to issue a digital card at any time. The main thing is to have access to the internet and mobile application. Almost all of them are offered for free and with free maintenance.
How to use virtual cards securely?
● When using a digital analog, avoid the temptation to write down its details (number, exp. date, CVV/CVC) to a file on your computer or an online document for easy copying. Since attackers can gain access to your records, you should not do this;
● To keep your device safe, download only official apps, install updates promptly, and use security solutions;
● Beware of so-called “phishing” links that lead to resources that collect personal data: scammers create copies of well-known sites by replacing symbols and letters in the address name. As a result, they get both the money of users and info about their holders;
● Choose a reliable bank to issue a card: for instance, the one you already use.