When it comes to managing your money, it’s great to tap into ways to do it better. One of the newest offerings on the market is the digital debit card. While you might not be familiar with digital debit cards, learn more about them here to change the way you shop and manage money for the better.
What Is a Digital Debit Card?
In short, a digital or virtual card is one that has no physical form. These cards come to you virtually where they can be saved to a digital wallet.
Apple Inc. (NASDAQ: AAPL) and Google — Alphabet Inc. (NASDAQ: GOOGL) — have the most popular digital wallets on the market, and you can save digital cards to these wallets for touchless payments. You can also use information from the card to make payments online.
A digital debit card doesn’t necessarily have a “sister” plastic card. If you want a plastic card, that comes separately. Additionally, your digital card may have a different number than your plastic card. While these cards draw from the same account, they are safer because, if one is lost, you can cancel it without losing all your spending power.
How Do You Get a Digital Debit Card?
When you register for an account with any financial institution, look into digital debit cards. Your new financial platform might offer virtual cards now or have a waiting list for a new digital card program.
Its digital debit card may include a virtual card that you can add to your Apple or Google Wallet. Plus, you might have the opportunity to use 1-time virtual card numbers for online purchases. These 2 types of programs work differently, so contact the customer service team to learn what they offer.
Who Should Use a Digital Debit Card?
Anyone can use a digital debit card. Digital cards are perfect for busy people trying to get out of checkout lines faster, those who prefer not to carry a wallet and shoppers who want a higher level of security. If you currently shop with a plastic card, you’re the perfect candidate for a virtual card.
Advantages of a Digital Debit Card
Digital debit cards bring you a wide range of unique advantages that offer peace of mind and simplify your shopping experience.
Security
While chip technology in plastic cards makes them a bit safer, virtual cards cannot be stolen because they — in effect — don’t exist. As long as your mobile device is secure, you can use your digital card with confidence.
Additionally, you can enter the app if something happens with your card, freeze it and reach out to your financial institution for assistance. It’s easy to review your ledger and reach customer service through the app. Since the card would not need to be physically replaced, you don’t have to call for a new card or wait for an overnight package.
Ease of Use
A digital card is effortless to use because you can tuck it away in your Apple or Google Wallet, touch to pay, use that information for online payments and use your phone as if it’s your wallet.
Touchless Payments
Touchless payments are simple, and considering the spread of COVID-19, they are also healthy and smart. When you can touch to pay by waving your phone near the point of service (POS), you avoid transmission. It makes it less stressful for people who feel they need to wear gloves or who experience medical anxiety over the virus.
Portability
When you have a digital card, it slips in your back pocket where your phone goes. Even though people usually carry a handbag or wallet, sometimes all you have with you is your phone.
Additionally, you can put your digital card on your spouse’s phone, allowing them to use the card when needed. Instead of digging for the card, you can send your partner out to “grab the dog food,” and they can pay with your card. Conversely, you can use their card to, for example, pay for the birthday cake — because they already handled everything else.
Unique Banking Products
While unique banking products are not a guarantee, a financial institution that offers digital debit cards is more likely to be progressive in its thinking. You might be able to take advantage of banking products like:
- Services to help you get paid early
- Credit building loans or cash advances
- Rewards or cashback options
Compare all the digital card issuers you find until you uncover a financial platform that offers the amenities you truly need.
Drawbacks of a Digital Debit Card
While a digital debit card is uncomplicated to use, you have to make sure that your mobile device is secure. If not, your digital debit card could be hacked. To be fair, digital financial platforms go to great lengths to protect you, but you must do your part as the end user.
You are also advised to use only secure wifi connections or known wifi networks. Plus, you can check the address bar to ensure the site you are shopping on has the “https://” prefix. Without this assurance, you cannot be certain that the site is secure.
- Prizes & Features
About MoneyLion
MoneyLion is a revolutionary financial platform that helps you make wise financial decisions, manage money and take advantage of unique financial products.
MoneyLion helps the “99% feel 100%” about their money by offering:
- Mobile banking
- Cashback rewards
- No hidden fees
- Financial calculators and tracking tools
- Buy now pay later options
- Investment and crypto accounts
- Credit builder loans
- Instacash advances
- Digital debit cards
Using Digital Debit Cards Effectively
Knowing what you know about digital debit cards, you can add them to a digital wallet like the Apple or Google Wallet, use them just as you would a plastic card and shop online. Consider a digital card that makes life a little easier and safer. You can also return to Benzinga at any time when you need further financial information concerning online financial platforms and their unique products.
Frequently Asked Questions
How do I withdraw money from my digital debit card?
When you want to withdraw money from a digital debit card, you can make a touchless payment where cash withdrawals are allowed. You can use the digital card at an ATM that accepts touchless inputs.
How can I prevent my debit card from being hacked?
Everyone should be concerned about hacking. It’s important that your mobile devices are secure. Use security apps that prevent hacking. Never use unsecured wifi networks and don’t share your passwords with anyone. Additionally, if you are shopping online, only shop on websites with the “https://” prefix, denoting that the server is secure.
About Patton Hunnicutt
Patton Hunnicutt is a contributor and editor at Benzinga. He’s worked for several years on financial content, addressing issues related to personal finance, investments, retirement, and more.