The benefits of virtual debit cards
As a business owner, you’ve probably come across the terms virtual credit card or virtual debit card, but you might not know exactly what these are.
What is a virtual debit card?
A virtual card is a digital version of a traditional plastic card. You get a set of sixteen digits similar to a credit card number together with a CVV code that is randomly generated using software. These won’t be the exact same as the numbers on your physical card, but they’ll allow you to access funds from the same account while you wait on your physical card to be delivered.
How are virtual cards used?
Each financial institution sets up its own policies for virtual cards. But the primary reason for having virtual cards is to facilitate virtual payments for ecommerce transactions. This is especially important during the time from when you are approved for your card and when you receive it. You need to be able to keep your business running seamlessly, and virtual cards enable you to do this.
How long can I use a virtual card?
Your virtual card number will expire once you activate your physical card.
How does an online merchant process virtual cards?
To the online merchant, a virtual card looks no different from any other debit card.
Are virtual cards secure?
Transaction credentials on virtual cards are randomly generated with tokenization, which is a very secure payment method. Virtual cards have no hard data that can be stolen, and some have predetermined limits to prevent overcharging
Does the virtual card work in person, at retailers, and at ATMs?
Virtual cards can only be used for online transactions and online purchases, which may or may not include manual entry. The cards are meant to be used only until your permanent card arrives.