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Virtual cards are on the rise by their incredible advantages for eCommerce payments and subscription services. Although more and more customers open virtual credit cards nowadays, there are some people who still know little about their great benefits. In this article, we are going to help you answer these questions about what is a virtual card and how does it work with more insightful knowledge. Let’s find more!
Can virtual cards create magics for online shopping and what should merchants do?
A virtual card serves the same purposes as a physical card but is not touchable. Virtual cards are jumping on the bandwagon in digital payments. More and more businesses accept virtual payment cards, including virtual credit cards and virtual debit cards, in subscription services, eCommerce, and other online companies. Let's explore each of these things in more detail, along with how they differ from one other and how they can possibly help your business.
What is a Virtual Card and how does it work?
Virtual credit card
A virtual credit card is issued by banks or financial institutions with 16-digit strings of numbers that are similar to the physical card numbers and CVV plus the expired date. You can imagine how the plastic card operates precisely like a virtual credit card. You as a virtual card holder are also granted a limit for spending and any fees&charges schedule might be roughly similar to the physical counterpart.
Thẻ ghi nợ ảo cũng là một sản phẩm trực tuyến không có dạng vật lý. Nó hoạt động giống như một thẻ ghi nợ thông thường với các số gồm 16 chữ số và CVV cộng với ngày hết hạn. Thẻ ghi nợ ảo khác với thẻ tín dụng ảo bởi nguồn tiền của chúng. Thẻ tín dụng ảo rút tiền từ hạn mức tín dụng để mua hàng trong khi thẻ ghi nợ ảo giải ngân trực tiếp từ tài khoản ngân hàng (tài khoản vãng lai hoặc tài khoản séc).
Virtual debit card
A Virtual debit card is also an online product without a physical form. It works like a normal debit card with 16-digit numbers and CVV plus the expired date. Virtual debit cards differ from virtual credit cards by their source of funds. The virtual credit card withdraws funds from the credit limit to grant a purchase while the virtual debit card disburses directly from a bank account (current account or checking account).
How many virtual card brands are there?
There are numerous virtual card issuers in the market especially in Europe and North America. The majority are banks and digital banks (neo banks) or fintech firms. However, these financial companies need to connect with the card brand firms to co-issue the virtual payment cards for consumers with co-branding products. Here are key players in the global card network:
To order a virtual card, consumers can request their banking providers (issuing banks) by submitting a virtual card application form and providing supporting documents for the onboarding process. In general practice, you might contact your relationship manager for support or pay a visit to the branch, but nowadays, with the booming virtual payment industry, clients are able to apply for virtual cards right on their smartphone or any mobile device by tapping into their banking app.
To order a virtual card, consumers are able to apply for virtual cards right on their smartphone
Virtual card examples
To protect your data, offer you more control over who charges you, and choose how much money actually leaves your account, a virtual credit card generator creates a virtual card on demand digitally. Below are some examples of virtual card products for your reference:
AMERICAN EXPRESS GOTM
American Express Go is an expense management option that enhances your convenience and works in conjunction with your Corporate Card program. Amex virtual card is a quicker, more convenient solution for your freelancers, recruits, and occasional travelers to make payments while on the go.
Citi® Virtual Card Accounts
With Citi® Virtual Card Accounts, buying organizations may handle a range of demands thanks to their flexibility, strong control, and expanded data possibilities. It can be used in conjunction with a current commercial card program to enhance growth or as a stand-alone solution to simplify purchases. VCA is a great option for Card-Not-Present transactions processed online, over the phone, or through the mail because of its secured features. It also serves as the foundation for Citi ePayables, a file-based solution for post-invoice payments handled by Accounts Payable.
Capital One Eno
When you shop online, use Eno to pay with virtual cards that help shield your credit card account from potential fraud. When you shop online, virtual card numbers from Eno help safeguard you from potential fraud by disguising your actual card number. The Eno browser plugin will appear when you're on a payment screen and create virtual credit card numbers you can use to make payments more quickly and securely. By selecting the Eno icon in the top right corner of your browser window, you can also access Eno at any time.
Apple Card
With the introduction of Apple Card, we radically reimagined the credit card. User information is available on the iPhone, and it is clearly presented. Privacy and security are increased thanks to cutting-edge technology like Face ID, Touch ID, and Apple Pay. Users also receive Daily Cashback on every purchase.
Revolut virtual card
It's really simple to use the Revolut virtual card. That's because it functions precisely like your standard Revolut card. As soon as you have one, you'll be able to see information on both your physical card and your virtual card in the app. Enter the 16-digit card number as usual, together with the expiration and CVV numbers, while making an online purchase, or You can use the card details to make payments online or over the phone. You can even add the virtual card to Apple Pay or Google Pay, to make contactless payments using your phone.
Monese virtual card
One virtual card can be created for each currency account by each Monese customer. Currently, you must have your physical card in order to set up a virtual card; however, updates will be provided as they become available.
DNBC Digital MasterCards are virtual cards that enable you to pay online any time, anywhere with card numbers and CVV codes just like physical ones. Protect your money from any risks of being lost and stolen while enhancing security. In case you forget your card number and CVV code, DNBC 24/7 support team will always be ready to help.
You can shop online, initiate the checkout process, and use a virtual credit card number to make your transaction in the same way that you would do with your physical credit card.
With every online retailer that takes credit card payments, virtual card numbers normally function. Therefore, if you can buy goods online using your actual credit card, you may undoubtedly do the same using a virtual card number.
Virtual card payment process:
How does a virtual card work?
Consumers use virtual cards for online payment to purchase any item that can buy online. The virtual payment can be used to pay for one-time or subscription services (recurring payment).
Some savvy shoppers prefer to checkout with virtual credit cards on Amazon or eBay. For those who are Apple fans, pay Apple subscription services like iTunes, iMovie will get more cashback with Apple Card payments.
Almost IT specialists and Gamers would utilize virtual cards to buy digital services, software or gaming features. These people are very busy and they have no time to go to a bank for physical card registration. They might open a virtual card online instead to save time and money.
Another community is high-tech lovers. This group enthusiastically enjoys their daily spending with technology and they crave a digital wallet (Apple Pay or Google Pay) which is linked to a virtual card to pay by phone. The payment method reflects their lifestyle and makes them feel unique.
Many eCommerce platforms that offer mobile apps are the ideal place to use virtual cards. Consumers can choose to checkout in mobile apps with virtual card online details and wait for delivery. The typical examples in this case are movie tickets, concert show tickets or sports game tickets and other marketplace platforms.
For business-to-business payments, firms usually implement virtual payments for vendors and business partners.
Usages of virtual cards for online payment
Virtual cards (virtual credit cards and virtual debit cards) bring a variety of advantages for individual users and companies. Let’s take a look at each targeted group to see how it encourages a better payment experience.
Businesses can extend spending authority to contractors and other employees while also improving fraud protection, controlling vendor payments, and aligning on spending and goals. Here are some wonderful benefits of virtual cards for companies:
Enhance fraud protection
Companies can authorize multiple virtual card numbers for their employees for business expenses. Some virtual card issuers can set one or some specific merchants that are accepted to pay. Therefore, cardholders have no chance to pay at other unapproved stores. The fewer places are accepted to pay, the less risk of leaking confidential card information.
Minimizing misused spending
Business owners can prevent overspending before it happens by limiting virtual card number use to one vendor and locking a card when needed. Businesses can precisely manage where payments are made thanks to virtual card numbers, thus lowering the risk of employee or contractor fraud.
Managing recurring and new vendor relationships
Virtual card online payment helps businesses prevent disruption in production and maintain relationships with vendors. Your businesses would run smoothly, your teams would have no delay in operation and be able to reach any target.
Control business expenditures by pre-set limit virtual credit cards
Some virtual card issuers offer company clients the ability to default budget for every card number. By allocating virtual card numbers to particular employees, budgets, merchants, and other entities, businesses can segment their cash flow.
More Security
With no physical form, the cardholder is able to avoid the risks of losing the card and leaking payment information. It is simply impossible for account theft on e-commerce fraud because criminals cannot have access to your bank simply by obtaining your physical card.
Convenience for E-commerce
You can easily order virtual cards online with a 24/7 banking service, and therefore, You can quickly complete the transactions online to increase the efficiency of your shopping experience with just a few taps on a phone, a laptop, or an iPad.
Save cost
In general, the cost to issue a virtual card is cheaper than a physical one. To provide an actual card for a user, the issuing banks require huge operation costs from making plastic cards to delivery services and renewing cards in any circumstances. Since everything is done online, the virtual creditor may reduce operating expenses and, as a result, lower customer fees.
Manage Card Easily
Managing virtual cards is much more simple than other credit cards. You can control the activated status, switch on and off the eCommerce function or even block temporary the cards just on your phone. With the introduction of virtual cards, we are not bothered with queuing at branches and banking anytime anywhere.
Virtual cards can help protect cardholders from credit card fraud, but they do come with some limitations.
In general, you can use a virtual payment card to carry out all the same transactions as a conventional plastic card does - just more effectively. Due to the fact that everything is done online, adding money, performing transactions, and paying suppliers and/or buyers only taking a few clicks to complete.
Virtual card | Physical card | |
Fixed bank number since account-opening | ✓ | ✓ |
Multi-channel: mobile apps, phone, or website | ✓ | ✓ |
Pay at physical payment terminals | ✓ | |
PIN feature | ✓ | |
Users can select spending limits | ✓ | |
Anti-fraud function | ✓ | |
Renew card online or in-app | ✓ | |
ATM cash withdraw feature | ✓ | |
Possibility of theft | ✓ |
When running an online business, you definitely need a payment gateway to get paid by your online consumers. Sometimes, shoppers might use virtual cards (virtual credit card or virtual debit card) to check out their cart. It is essential to integrate an online payment gateway that accepts all type of card payments and let you automate your business with security and convenience.
PayCEC is a global payment service provider that provides virtual account payment gateway to help your businesses acquire multi-payment methods from virtual card online payments to e-wallets or digital bank transfers. You can learn more about powerful features that PayCEC supports merchants in online payment and fee schedules to match your business plan.
Prepare your company profile including:
Our Relationship Manager will contact you and support you in processing and integrate your merchant account
Use fully features of our payment service on Dashboard
The payment gateway for virtual card acceptance
PayCEC’s secure payment gateway was established in response to the growing need of global online businesses to accept online payments more quickly and easily. In the digital era, our payment flow has evolved to work seamlessly and effectively across all platforms and devices. We pride ourselves on combining superior technology with first-class customer service.
PayCEC’s secure payment gateway for online businesses is a truly global payments platform that not only allows customers to get paid instantly and securely, but also withdraws funds to their business accounts in various currencies.
We have created an open and secure payments ecosystem that entrepreneurs and businesses choose to securely transact with each other online and on any device. We proudly maintain the highest level of client advocacy in the industry.
There are various banking apps across the world that can support virtual cards for customers. Here are some recommendations for you:
1. US Unlocked
2. Wise
3. Blur
4. Privacy
5. Open.money
6. Airtm
7. Advcash
8. American Express Go
9. Chime
10. Divvy
11. JP Morgan Chase
1. Revolut
2. Monese
3. Monzo Plus
4. Starling Bank
5. Skrill
6. iCard
There are many virtual debit card and virtual credit card provider apps in the market that support customers’ demands when it comes to digital payment and eCommerce. Most of them are fintech companies that offer payment services and other e-wallet services.
Also, many banks support virtual card products too. Customers can contact their relationship manager to request the product or apply it right in their banking app.
1. US Unlocked
2. Wise
3. Blur
4. Privacy
5. Open.money
6. Airtm
7. Advcash
8. American Express Go
9. Chime
10. Divvy
11. JP Morgan Chase
1. Revolut
2. Monese
3. Monzo Plus
4. Starling Bank
5. Skrill
6. iCard
If your virtual card is a virtual debit card or prepaid card, since this card account is linked to a current account or checking account, you can transfer money easily from a virtual card account to any other bank account that you would like to do. Another way to transfer money from a virtual debit card is via e-wallets. You can link your virtual card to PayPal or any e-wallet you prefer and then transfer it to your bank account or other e-wallet accounts.
In case your virtual card is a virtual credit card, you cannot transfer money because funds are stored in a credit account and they are just available for purchasing items and products, without a banking transfer feature. However, you may try by linking your virtual credit card into PayPal account and transferring it to another PayPal account or to your bank account.
To order a virtual Visa card, first and foremost, you need to apply for a bank account to have a customer number. It depends on fintech companies or card issuers whether you are required to open a physical card in advance to be qualified for a virtual card or not. Some banks don’t ask you to have both however a few banks need you to align with their product policies.
It is important to check with the virtual card providers if they support Visa cards or other types like Mastercard and Amex while they are not what you are looking for.
Your virtual card may be created in a few easy steps:
Virtual Visa debit card is a product of Visa card company that cardholders can register online or in App and the card number will be delivered instantly to the customer's registered email address plus the CVV and expiry date. Because Virtual Visa debit cards share almost similar functions to other Visa debit cards, so they are accepted at any merchant and store that supports Visa card payment both online and via phone.
Mastercard is a card network, the company only support a communication system to transmit payment information of Mastercard credit card or debit card in virtual form or physical presence. To order a Mastercard virtual card, you first need to find the banks or issuers that offer Mastercard brand for virtual card products. There are a lot of online providers and you can search their website on search engines to opt.
Virtual cards are created for digital banking and payments. Unlike plastic cards, Virtual cards do not require physical representation because they are entirely virtual and hosted online.
There is some advantage of virtual cards:
This number is used when you make payment. The virtual account number is safer and more secure than an ordinary credit card since it can only be used once. Your card account number will not be shared with the merchant and won’t appear on the receipt. The virtual account number ensures that your credit card account is safe. Besides that, you can use a program to set the maximum amount you can spend at a particular time.
Similar to how you would transfer money from a conventional card, you may send virtual card payments to your bank. Like a plastic card, the Visa card contains a card number, expiration date, and security code. By connecting to your online account, you should be able to make transfers to bank accounts. Another way to transfer money from a virtual card to a bank account is to link your virtual card to PayPal account. PayPal has an option to transfer money to a bank account and you are good to go!
Safety is a key concern, particularly for a corporation, because numerous individuals may need to use the same account for a range of transactions.
Virtual cards effectively offer you the upper hand over fraudsters. It will not only hide your real account number but also cease to exist after one transaction, making it useless to hackers. Therefore, it is secure for your account.
Notes: Physical cards are also susceptible since they can be stolen, lost, or hacked by card readers but virtual cards are not
We are honored to serve as your reliable business partner and financial service provider in the industry and other business-related services. With the help of our professional staff, to help merchants to achieve their goals for the development and expansion of the international business market.
Our payment flow has developed in the e-commerce world to perform seamlessly and effectively across all platforms and devices. We take pleasure in combining technology with customer service, to solve your concerns at the moment.
PayCEC is a fully worldwide payment network that not only allows merchants to be paid immediately and securely, but also allows them to withdraw money in multiple currencies to their company accounts.