When online transactions became widespread due to the Internet, a need to pay with cards on the network has also arisen. This is quite handy as a virtual debit card saves your time and you no longer have to line up at the bank. Now you do not need a terminal to make a money transaction.
Kyle Drummond, financial advisor at directloantransfer, says that apart from that, numerous cases of fraud began to appear, when attackers hacked cards and debited all the money from them. Based on such disturbing statistics, banks began to issue a special virtual debit card to make online payments. Virtual debit card data have almost all the same details as conventional plastic cards have. They are needed to make a transaction.
The difference with a virtual debit card is that it has no physical form and exists only virtually. Learn more about a virtual debit card. Find out how it can be issued, and how to get it. Be ready to know its advantages and disadvantages.
Alternative to Plastic
A plastic bank card is an excellent payment instrument, which is much more convenient and, most importantly, more profitable than cash. Cashback cards allow you to save money since they return% of the amount of each check. Installment cards can ease the burden on the family budget for large purchases since they allow you to pay money in installments.
But plastic cards also have disadvantages. First, it is a piece of plastic that can be damaged or lost. Otherwise, it can be stolen. In this case, the card will need to be reissued or blocked, but this is unnecessary trouble. Secondly, you need to be careful when paying with it at cash desks or withdrawing cash from ATMs. Fraudsters may try to read its details: holder’s name, number, validity period, CVV-code, pin-code.
A virtual debit card is an alternative to plastic that is devoid of these disadvantages. These are bank cards that have all the same details as ordinary cards. By adding such a card to a smartphone, you can pay for purchases in places of traditional trade: supermarkets, cafes, restaurants, hotels, airports, etc. At the same time, you do not need to carry it with you and therefore cannot be lost. In the store, no one will be able to spy on its details. During the payment process you bring not a card, but a smartphone to the terminal.
What is a Virtual Bank Card?
A virtual debit card is a unique type of card product that is used to make transactions online. It will be difficult to use such a virtual card in everyday life in stores since it does not have a physical medium. However, payment solutions are now actively developing using a smartphone or smartwatch. In these cases, you can use both ordinary plastic and a virtual payment method.
As a standard, a virtual debit card is issued without a physical counterpart. There are banking institutions that to this day issue plastic with an indication of the virtual card number, its validity period, and the CVV code. Since it has no additional attributes, it cannot be used for payment. Other banks issue a standard plastic card so that you can use it to transfer money to a virtual account.
What Details Does a Virtual Debit Card Have?
- Number. It is standard and consists of 16 digits grouped by four.
- Duration. Like a regular one, a virtual card has its own duration. It will not be possible to use it after its expiration.
- Name and surname of the cardholder. These data are indicated in Latin letters. Sometimes they may be missing and the card will be non-personalized.
- CVV code. Listed in three-digit format. On standard cards, it is printed on the back.
Advantages and Disadvantages of a Virtual Card
- Universal properties. Virtual cards are allowed to make payments in most online stores. This distinguishes them from monetary systems which have an eternal problem with replenishment.
- Convenient release. You can issue a virtual debit card without going to the branch in your personal account or at an ATM. The card details are formed instantly as the client does not need plastic.
- Safe use. Using the virtual card, you can not transfer the details of your other cards on the network. It is possible to order a card with the amount for one purchase.
- Anonymity. The presence of a cardholder’s name on the virtual card is not a mandatory requisite. Therefore, the conclusion of a bank service agreement is not required.
- There are restrictions on limits, functions, validity period.
- Limited use (online only).
Ultimately, a virtual debit card is only used on the Internet. The presence of such features as security and speed of receipt makes it an indispensable assistant for netizens and online shopping lovers.