With most businesses going digital, virtual payment cards are in demand, like virtual debit cards and virtual credit cards are gaining momentum. Virtual payment cards are the modern alternative for secure payments. These mobile payment cards allow the cardholder to pay with a mobile phone instead of a physical card. Let us learn more about virtual payment cards and their advantages.
What are Virtual Payment Cards?
Virtual payment cards are a kind of finance card that a cardholder can use online. The functioning of virtual payment cards is similar to that of regular physical payment cards. These cards’ 16-digit number, CVV and validity are available online, which you can find on the issuers website. A cardholder can use these cards anywhere, just like a regular credit card.
The cardholder has control over their virtual payment card, such as
- Set a spending limit on the card
- Choose the merchant types where you want to use the virtual card
- Change your credit card pin by visiting the issuing bank’s website.
Top 5 Benefits of Using Virtual Payment Cards
- Virtual payment cards offer more security: With the increasing security lapses traditional physical cards suffer from, virtual payment cards have come up as a safer payment option for both merchants and customers to give a respite from payment fraud. The preset spending limit of a virtual payment card makes it less vulnerable to fraud. The cardholder can terminate the virtual payment card with a click of a button if the card data has been compromised. Virtual cards come with a new one-time-use number each time the card owner uses them. Account theft on e-commerce platforms gets ruled out with virtual payment cards because fraudsters cannot access the customer’s bank details as they do by obtaining the physical card number. These cards cannot be cloned physically, and the 16-digit number changes whenever you make a transaction.
- They have a shorter life: Virtual payment cards are usually valid only for a short period, like a few days. Most virtual payment cards are designed to allow the card owner to make a single transaction using the card. The transaction amount is smaller than the amount the customer has on the card, and the surplus amount gets transferred to the customer’s bank account. Following this, the virtual payment card ceases to exist. The card’s short life makes it a more viable option for card owners.
- Convenience to e-commerce: Merchants can assess virtual card payments 24×7, which gives them better access to their domestic and international business. Business owners do not need to go to the bank’s branch and can do online transactions over the phone or computer to increase the efficiency of their business. Since everything is done digitally, there is no time lost in starting the account. The scope of manual errors and delayed paperwork is also eliminated.
- Easy tracking of cash flow: The payments made to vendors and suppliers can get confusing if you want to make the payment before the specific date. Virtual payment cards make it easy to track the funds available in an account due to the data available for them. It makes the payment system more transparent and efficient.
- Easy management of the card: Virtual payment cards offer more control and flexibility to card owners. Customers do not need to prescribe the spending limit set by the bank. You can assign a single-use card to a party and set the card’s limit. It makes the card management process easy.
Banks and third-party websites provide virtual payment cards to customers. Since the card owner will have to provide the account and card details to third-party websites, it is advisable to prefer a reputed bank to obtain a virtual payment card for additional safety cover.