Online shopping has become the leading source of revenue for many retail businesses in the last twelve months. Many customers have used ecommerce services for the first time and the transfer to digital-first retail services has been accelerated at a rapid pace.
This has given rise to innovations such as virtual cards which aim to keep shoppers safe online. But what are virtual cards? And how exactly do they keep people safe?
What is a virtual prepaid card?
Fundamentally, a virtual prepaid card is just like a regular payment card. However, you will not receive a physical iteration of a virtual card, as they exist entirely online. A virtual card is not linked to your bank account in anyway. Instead, a virtual card uses a secure online account that you can preload money to.
How does a virtual payment card work?
Simply put, virtual prepaid cards work by randomly generating a set of numbers to mask your card details that you use in place of physical card numbers. The numbers are tied to your online account so you can still make payments, but the account information will never be revealed to anywhere you shop. Keeping you safe from hackers and protecting your card information.
How does a virtual payment card keep you safe?
By never revealing any of your personal or financial information, a virtual card keeps your details and your money safe when shopping online. There is no risk of your account details being stored by external databases, as you never use your personal bank account to pay for items online.
How are virtual payment cards being used?
Virtual cards are being used for many inline services. Most commonly, virtual card holders are using them to pay for products and services via ecommerce websites. You can use a virtual prepaid card to make online bill payments and if set up properly on your smartphone, you can use them to make contactless payments.
What other benefits do virtual payment cards offer?
Virtual prepaid cards have many great benefits. For one, you do not need a credit check to obtain one, meaning your credit score will not be affected by getting a virtual card. If you use your virtual card to by things when you are travelling or from international sellers, you will also get a fantastic exchange rate from a virtual card.