Virtual payment cards have been available all this time, but only a few people know and use them. Usually, it may be because only a few establishments have offered cardless transactions for the past few years, so the use of virtual payment cards has been limited for a long time. Or, people just don’t have any clue what it is.
If you’re in the same boat, you may want to read up on this article. It might prove that you badly need this kind of payment card.
- Minimized Fraud Risk
With a virtual corporate card and payment card, you can use its single-use virtual card numbers. You can use it once in a transaction, and if the transaction goes through, the number will expire.
The single-use virtual card number’s purpose is to prevent sniffers, hackers, and even onlookers from capturing your actual card number and using them without your permission. And even if they capture the single-use number, they won’t be able to use it anymore as it’s already consumed or used already by the system.
- Issuers Can Log Optional Data
When using a credit or debit card, people often wonder what happens with their balance when paying for their credit card debt. They often rely on their balance sheet, becoming frustrated because it contains little to no information about their recent transactions. With virtual payment cards, you can set up your card or provider to log additional information to your account.
- Lower Costs And Freedom From Carrying A Plastic Card
Aside from those, virtual payment cards can save you a few bucks because you don’t need to pay for a plastic card and incur some of the usual fees. And, of course, with a virtual card, you don’t need to worry about carrying a plastic card with you or forgetting where it is.
All you need is your phone and an internet connection if you need to transact. Just get a virtual number and provide other required information for your transaction. There’s no need to wait for a working card reader or an attendant who can’t swipe a card right to save their life.
And since you don’t have a physical card, you don’t need to worry about losing one. You may know how a colossal disaster losing a credit card can be. To refresh your memory about this process, here are the typical steps:
- You need to contact the issuer, which means waiting on hold on the phone for a very long time.
- Provide the information they need, which you’ll need to find since most of them are in the card you lost.
- If you suspect that it’s been stolen, you also need to get it locked.
- And finally, you’ll also need to go through all the charges applied on the lost card and verify that you made them.
You don’t need to go through all of that with a virtual credit card. If someone stole your phone or had access to your account, you can just immediately log in to your account and get it secured online. Another thing you can do is just stop the service and cancel the whole virtual card thing. And once you get a new phone, you can just reinstall the app for the virtual card as if nothing happened.
- Help Minimize Spending
Some issuers allow their customers to generate temporary card numbers that will contain a set amount of credit. Once the amount of credit is consumed, the number will expire and become unusable anymore.
For some users, this function is desirable as it can help them manage their budget. While you can do that with traditional credit cards by setting a spending limit, removing the limit can be a pain when there’s an emergency and you need to go over the amount you’ve set. Exceeding the amount is as simple as generating another virtual card number without limits with virtual payment cards.
- Ease Your Customers
If you have a business that transacts using credit cards, offer the option to go cardless to allow your customers to use their temporary accounts numbers to receive their credit card payments. Doing so can help make them feel at ease and secure when doing business with you.
Conclusion
Those are the five reasons why you should use a virtual credit card. It minimizes fraud risk, acquires more information regarding your transactions, reduces costs, frees you from plastic cards, and helps you curb your spending habits. Consider the ideas mentioned here as you plan and prepare.
