There is now such a thing as virtual cards and many service providers offer them to people interested and eligible. Considering the astonishing number of these financial service providers and easy access to them, some prospective clients have trouble choosing the right one.
Well, we suggest that you consider established brands when the need arises. By established, we are talking about those brands that have a track record of providing quality financial services to their customer base. This is even way before the possibility of owning virtual cards was an option to be considered.
Frankly, there are quite a number of such brands out there and Visa happens to be very high up on the list. Having established this, you might want to know that debit and (especially) credit cards have come a long way.
The idea of using them dates back to the mid-1900s. Even though they were made out of papers back then and issued to interested and eligible customers, the competition quickly grew intense.
So, the next time you wonder why there are so many options, you should know that this is not a new development. If you are still interested in knowing more about how credit and debit cards emerged over the years, you can visit: https://www.relativelyinteresting.com/.
A few subjects revolving around the use of virtual cards will be discussed here in this article. You are advised to continue reading as you might get to see how they can benefit you in one or two ways. At the very least, you will be better informed if you continue reading. So, you should keenly follow through to the end of this article.
What Are Virtual Cards?
These are cards generated online by specialized financial service providers at the request of customers. They are issued for the purpose of carrying out financial transactions. By financial transaction, we mean that it is possible to send and receive money using these digitally created cards.
It is “virtual” in the sense that it is not printed as the traditional kind that you are already used to. However, it can do pretty much all that the traditional kind can do.
In addition to this, some extra perks come with making use of them. This is especially when you generate yours using the services of the right service provider, just as we advised above.
You would realize that there are a bunch of similarities between the virtual and physical kinds the moment you start using them. For one, there is credit and debit virtual cards just as you have them with the physical kind. So, even those that want credit services are not left out as well.
How Virtual Cards Work
We are very particular about readers understanding this part of the article. This is especially because it is the major aim of this article. So, ensure that you do not miss anything in this part.
You should also know right away that there could be some slight differences in how they work depending on the service provider. However, we would be discussing this from a general viewpoint and using the Virtual Visa Card as a case study if the need arises. Having made all these clear, let us get right to explaining how they work.
Choose a Virtual Card Service Provider
Many online financial institutions are into the service of making these cards available to customers. So, you need to choose among the several options.
A lot of them can be downloaded on mobile app stores and via other online channels or even their websites. In choosing, you should be aware of what they have to offer and how it is going to suit your financial needs.
For instance, not every one of them offers credit virtual cards. So, those who want to enjoy a line of credit using this option have slightly limited options. You need to think about all these things before you make a choice.
Generate Your Card
You would have to generate your card after you have made your choice (as explained above) and you have been considered eligible. This is whether it is the credit or debit kind.
The usual thing is that the service provider will give instructions on how to go about this. More often than not, adhering to these instructions is not hard as they are very simple tasks.
You would need to connect your virtual card account to a payment solution to fund it. This could be your bank account, physical card account, or a few other options. Afterward, you can go on to get your:
- Virtual card numbers
- CVV – which is your Card Verification Value also known as Card Security Code in some quarters
- Expiry Date
What you would realize is that these are pretty much the details on physical credit and debit cards as well. This goes on to prove that they are more or less the digital version of the physical card. If you would like to know more about details on a typical virtual card, you can read this article.
Since the world is increasingly going digital, we are bound to have more of them and this would come as no surprise. So, you are better off using them from now on.
One of the key differences between virtual and physical cards is the disposable nature of the former. At least judging from how the Virtual Visa Card works, the card numbers are disposable.
This simply means that they are only relevant for a single transaction. As a result, another set of numbers has to be generated for subsequent transactions. This would not be a problem as generating the numbers for transactional purposes is seamless.
The question you might be asking is why the numbers are disposable in the first place. At least judging from how it works with Visa, this is a security tactic in the best interest of the customer. This is considering how theft using the numbers cannot happen since they are only useful for single transactions.
Should You Use Virtual Cards?
You should seriously consider using virtual cards because of the numerous benefits that come with using them. Some of these benefits have been passively pointed out above. But for the sake of having them in a more organized way and learning more about them, some of them include the following:
Safety
There is no point debating how they are safer than physical ones. As pointed out above, options such as the Virtual Visa Card work in a disposable manner.
So, even if mischievous people lay their hands on your card numbers after you have used them, it would mean nothing. Other than this, there is nothing physical to be stolen and this in itself makes it safer for use.
Customer Determines a Lot
Quite a lot has been said about how safe using virtual card is. So, the point above would not have come as a surprise. Well, what might come as a surprise is how they offer users a lot of control.
For example, you can set a spending limit. This is a great feature for those concerned about how they spend and need restrictions. It is just a lot easier to customize with a virtual card and this is a good reason to have them.
Quick
Have you ever been a victim of card theft and tried getting across to your bank?
If you have, you understand how frustrating this can be. It is even more frustrating when you demand another card. To be fair, it seems to be a lot better in recent times but this is nowhere close to the pace of virtual cards.
They are so quickly generated that one card number can be disposed of and another set generated quickly. For this reason, they are the way to go for those people who are time conscious.
Cost-Effective
One of the things you would realize with them is that they are more cost-effective. This is understandable considering that costs associated with printing on plastic and other things are avoided.
As a result, things such as maintenance costs do not apply. And at least judging from how things work with Virtual Visa Cards, there are often rewards up for grabs for customers. Generous cash-backs are just some of the incentives that you can get by having a virtual card account.
Eco-Friendly Solution
In our quest to make life better for ourselves, we need to ask how this impacts our environment. Virtual cards make life easier and better for users but the fortunate thing is that the environment is not put on the line.
The same cannot be said of the physical card alternative. This is because it is made of plastic and its inappropriate disposal can cause harm to the environment. Other than this, greenhouse gasses are emitted during its production. So, even the environment is better off with people using a virtual card.
Globally Accepted Financial Solution
Generally speaking, the concept of sending and receiving payment using a virtual card is widely accepted. Even commercial banks are now dishing out theirs to interested and eligible customers.
It is not hard to understand why it is globally accepted considering its numerous benefits (which include user’s security as explained above). But as also explained above, you should consider using virtual cards from established brands as this is better.
Conclusion
Virtual cards are becoming more popular by the day. However, some people have reservations about them. This article has addressed things such as how they work and their benefits, especially for the sake of such people. Now that you understand them better, you can go about getting your debit or credit card with a virtual number for easy and quicker financial transactions.
However, you are advised once again to deal with an established brand. This is a lot better and so you should take note of this going forward.
