Each consumer knows what a credit card is, how to shop with it, and what are its biggest benefits. Credit cards have long been a part of our daily lives. They continue to evolve thanks to technological advances that seek to meet the ever-changing needs of modern clients.
Nowadays, credit card details are being memorised in various shopping websites and apps for the ease of payments. This way they have inevitably become vulnerable in case of security and data breaches.
For this reason, there has been greater interest in ways to transact more securely in the light of recent events and data breaches.
Since their invention back in 2009 virtual payment cards have become a better way for individuals to spend more securely and privately online.
Virtual credit cards facilitate not only individual consumers, but also corporations. In this case business owners provide their employees with fast and convenient access to a corporate expense account without issuing personal or physical corporate cards. Thereby, a virtual credit card is an ideal way to monitor transactions and enable payments at a lower level.
Depending on the account holder and the money, there are three main categories of payment cards, each one has its own characteristics:
Depending on the type of holder (physical or non-physical), there are plastic and virtual payment cards.
The temporary card number, broadly known as virtual debit or credit card number, is generated through a website or mobile application. Virtual credit cards can be used for most online purchases and not necessarily come with physical cards.
By using virtual cards, you can decrease the amount of the so-called ‘personally identifiable information' you share on places you buy from. Generally, you can set a maximum charge or spend limit on the virtual credit card. This prevents you from being overcharged, but also locks merchants and restricts card usage elsewhere in case the merchant is breached.
Another cool feature is that you can not only easily issue, but also close your card with just a few clicks. Moreover, all of the transactions made with a virtual credit card are visible online in the primary credit card account statement.
In fact, a virtual credit card is simply a credit number. The issuer of the card provides special software that is installed on the user's PC. Hence, an intermediary credit card number is being generated and associated with the permanent card. Once created, this number can be used by the user for shopping online.
Another useful fact in terms of security is that the virtual credit card number cannot be traced until the cardholder's identity or actual credit card is identified. This measure also prevents theft of personal information and its possible misuse.
Here are some more important features of virtual credit cards with respect to security:
An increasing number of people are discovering the benefits of virtual credit cards. They are convenient especially because of the high online security they provide. In fact, it is more secure to shop online with a virtual credit card than with your real one. Unlike the physical credit card, which number remains active and endangered to be "stolen" if you are an inattentive buyer, the virtual one can not track and assign your personal data. In fact, it is almost impossible to make copies of virtual credit cards.
Virtual credit cards are valuable tools that not only simplify payment processes, but create new efficiencies for businesses. On top, they also eliminate numerous security and fraud issues. They protect data privacy and security without compromising your convenience and ease of use.
Boris has a diverse product background from launching finance products to bringing payment programs to life. He is currently leading the Spend Controls product area focusing on enterprise features that bring visibility and control to finance teams.