The Rise Of Virtual Credit Cards And Why They're Worth Considering

Many of our purchases are now online. Groceries? Something we can order. Starbucks? Scan the app in-store. Even in situations where you may use a physical credit card - like checking out a retail store - there’s the option to simply use Apple Pay and sync your virtual wallet to the store’s processing system, meaning it’s way less of a hassle if you forget your credit card at home. The entire world seems to be moving everything to virtual, and as such, virtual credit cards are on the rise. They’re just like the credit card you have in your wallet, except they’re virtual - no physical card needed. 

Not to worry about opening another account or having yet another credit card number. It’s another number, yes - but virtual credit cards connect to your main credit card, meaning your credit score is unaffected by your decision to open one. Plus, they’re available to use anywhere that accepts credit cards, which grants an ease and convenience while also preventing fraud.

There’s a number of reasons why virtual credit cards are on the rise and why you might consider them, especially if you make big online purchases, such as media buying. Here are some reasons why you might consider a virtual credit card. 

1. You Get Access To It Immediately 

No more waiting until your new credit card arrives in the mail (even if that’s just an overnight package, like American Express offers) (NYSE: AXP). With a virtual card, the minute you’re approved, you immediately have access to the new number. This is a great way to access more capital if you’re running a business or have funds on hand if you’re running out of other options. The immediacy is also just a convenience if you’re ready to transition totally to virtual credit cards for big online purchases as soon as today. 

This is also helpful in the case of a card number getting stolen. Although this is less likely with the safety and fraud-prevention of virtual cards, it’s a major comfort and relief to have access to a brand new credit card number within minutes should anything occur.

2. It Provides Greater Flexibility

Virtual credit cards are customizable, meaning that you can lock them, delete them, or ensure that they’re only used at certain vendors. You can also place spending limits on them that are different from the limits on the main card. This is especially useful if you need to share corporate card information with employees that make independent purchases, or if you have someone else - such as your child - on a card. 

Since virtual cards are on the rise for big commerce companies, platforms such as PayCertify are syndicating information across dashboards so companies can track all purchases made, when balances are low, and get unlimited cashback on purchases. Funds are allocated specifically to these virtual credit cards, so if an employee is given a certain budget to use when media buying or purchasing another business-related expense, it works almost like a ‘gift card’ but attached to your main credit card number.

3. It Reduces The Risk Of Fraud 

Aside from any type of online fraud that may occur when inputting credit card information, it’s a major relief to not have a physical credit card that could potentially get lost and end up in the hands of the wrong person. We’ve all had the experience (or seen a friend or family member go through the same) of getting a card physically stolen or physically losing it, resulting in fervent calls to the credit card company. Plus, if the main credit card that your virtual card is connected to gets stolen, it leaves your virtual number unaffected.

In fact, the nature of a virtual credit card is to protect your main credit card account. Credit Karma noted that should anything happen online, “closing the virtual card mitigates the risk of your main account being exposed in a data breach. It also saves you the hassle of tracking down and updating your recurring payments with vendors other than the one affected by the breach.”

Since virtual cards can be tracked with full transparency, it’s also easy to notice the warning signs of fraudulent activity, such as if you haven’t yet used a card, or a balance isn’t what it should be. Deleting or locking the card can be done in an instant - no more waiting on hold with the credit card company to handle these types of problems.

Whether you’re worried about fraud, want an extra level of protection, or you have numerous employees who work from your main credit card account, virtual cards are a great option that provide a peek into the future of all transactions. As the world continues to become more digital, security measures such as these cards will continue to be taken - and resources like them will become more abundant.
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