Virtual Cards To Protect Your Payments | Virtual Payment Cards (2024)

FAQs

Virtual Cards To Protect Your Payments | Virtual Payment Cards? ›

Virtual card numbers are coded for a specific supplier and a set amount. They can't be processed without the correct supplier credentials and they can't be charged for an unauthorized amount. Once a payment is processed, a virtual account number automatically becomes inactive and can't be used again.

Virtual credit cards are digital credit cards that function like physical credit cards—but without the plastic. Rather than providing the same card number to multiple vendors, companies can limit their exposure to potential fraud by generating different 16-digit card numbers and expiration dates for each transaction.

Major credit card companies like Mastercard, Visa, Capital One, and American Express issue virtual credit card numbers as a way to provide an additional layer of security for online purchases or to limit spend to an account. Virtual credit cards are completely legal and available for mainstream use.

When you pay a bill, you can pay with a bank account or card. For vendors who accept virtual cards, they'll be sent a 16-digit Mastercard or Visa number to process the payment just like a credit card. Virtual card payments are delivered the same day or next business day, and faster than checks or ACH.

A virtual credit card may be better if you want added security when shopping online or want to set spending limits. If you want convenience and rewards, a traditional credit card may be the way to go.

Virtual cards offer a layer of security compared to physical cards because they protect your real credit card information. This makes them safer than physical cards in several respects: Virtual credit cards can be restricted to specific merchants and limited to certain spending limits.

The cost of accepting virtual card payments

Virtual credit cards cost buyers very little, as issuers charge minimally for their services and the actual creation of cards costs the buyer nothing. For sellers, however, virtual card processing can be expensive.

When a card number is generated, the charges are routed to the original credit card number. However, the virtual number cannot be traced back to the original card, and it will not work after the purchase.

What are the disadvantages of a virtual debit card? Limited use: The main disadvantage of having a virtual debit card is that it can only be used for online transactions. So, if you want to use it for making purchases in-store or withdrawing cash from an ATM, you are out of luck!

A virtual card is stored on your phone and can be used to pay in stores or online. It has its own unique card number, expiry date, and CVC. A digital card is a copy of your physical bank card that's stored on your phone. Digital cards have the same card number, expiry date, and CVC as your physical bank card.

Do virtual cards need billing address? ›

When creating a virtual card, you will need to give a billing address. When you check out with the virtual card, the merchant's checkout process will validate that the address you enter at checkout is the same as the address on the virtual card, so it's important they match.

Can I use virtual card numbers for recurring transactions, like bills or subscriptions? Yes! If the merchant accepts credit cards, you can set up your virtual card number to pay for recurring transactions, including bills and subscriptions.

A major disadvantage of a virtual debit card is that it cannot be used to withdraw cash at an ATM. Moreover, you cannot use it to make in-store purchases where swiping or tapping the card is necessary.

Typically, virtual cards can be used only once. However, some companies may offer virtual cards that can be used multiple times.

The number you assign to a virtual card is the purchase "limit" or the maximum amount that can be used before transactions begin declining.

Unfortunately, if you don't have a physical card, you cannot get money off a virtual card through an ATM. However, you can link a virtual card to your physical credit or debit card or mobile wallet. This action makes it possible to withdraw cash at ATMs.

The best way to accept credit card payments depends on your business's needs. The simplest solution is to use a payment service provider that gives you multiple ways to accept online payments, like a hosted checkout page, direct payment links, and a virtual terminal. Pay.com offers all of these options and more.