A virtual prepaid card is an electronic card not linked to a bank account; they are a non-physical entity which allows you to pay for goods online. Virtual cards are agile as they can be created in a matter of minutes for immediate use. They allow the user to set their perimeters of use, such as a spending limit or expiration date.
Getting a virtual prepaid card couldn't be easier: apply online, get your card, add funds and start making payments- you won’t need a credit check as the card is prepaid.
What are the benefits of using a Virtual Prepaid Card?
Virtual Prepaid Cards can be considered a more secure way of making purchases online for 5 main reasons.
1- Virtual prepaid cards allows you to pay securely and discreetly, as it is a way to pay online for your goods without submitting your private details. You can use a prepaid card as a one off, or to manage subscriptions keeping it to one card per vendor. This not only allows better money management over where and what you spend on, but also protects your data and information from being shared.
2- Using a virtual prepaid card to shop online is more secure than using a physical card, because you can use a single number card for a one-off purchase. The virtual card will not be able to assign your personal data and therefore you will not be endangered by fraudsters, it will mask your account number. The card will then become invalid after the transaction takes place- rendering it unless. This makes virtual prepaid cards easier to coordinate, control and cancel.
3- Prepaid cards offer effective budgeting as you can only spend the money you have uploaded to your card. This allows you to monitor how much you are spending online.
4- Some prepaid virtual cards are available in several currencies within the EEA, this gives autonomy over which currency you would prefer to use, even if it’s not your currency of residence.
5- Prepaid virtual cards aren’t physical so you won’t be waiting for a card to arrive in the mail, once you have it by email it is ready to use instantly resulting in faster payments.
What are the disadvantages of using a virtual prepaid card?
There are a few disadvantages when using a virtual prepaid card, such as if you are booking a service which requires you to provide the physical card, such as a hotel, plane tickets or appointments, then there is possibility for a problem. Due to the numbers on the virtual prepaid card not matching the physical card, it would indicate to the merchant a discrepancy.
Also, some merchants or service providers don’t accept virtual prepaid cards and therefore you may be rejected from some services which you which to book or purchase.
Overall Virtual Prepaid Cards can act as a protective barrier from fraud, allowing you to purchase goods online with more protection. The money you spend on your prepaid card is money you have access to that you have uploaded on to the card so you won’t find yourself paying for any hidden charges. Prepaid Cards are a great way of managing your money and protecting your data.