Using Virtual Cards for Secure Online Shopping

Virtual credit cards are most commonly used for online payments. These cards provide numerous benefits while helping you to pay money via online shopping more securely and easily. Virtual cards enable you to execute online payments without sharing your real credit card number with the stores. You can use this virtual number for all types of online payments including paying for various subscription services, billing, e-commerce shopping, etc. You can access your virtual cards via your specific banking application, or from digital wallets.

What Is A Virtual Card?

A virtual card is just like your actual credit card, which helps you pay for anything that you buy from online shopping. This card also consists of a 16-digit card number, an expiration date, and a CVV security number. It is also connected to your credit card, and all the transactions executed from it will occur in your card’s account statement. 

You can also set up a virtual card by connecting your credit card to Apple Pay, or Samsung Pay in a few seconds. You can also view your virtual card, by clicking on the credit card image present in the top right corner of your screen.

Benefits Of Virtual Cards for Online Shopping

Virtual cards are the easiest payment methods, that are highly effective for online shopping.  These cards are similar to credit cards, but these consist of a separate number, which allows you to use them for online shopping without being worried about getting hacked. Here are the key advantages of adopting virtual cards for online shopping:

• Eliminates The Risk Of Being Identified

It is the most important advantage of a virtual card, as it prevents your credit card from being hacked.  It protects your identity and makes online shopping more secure, when providing your financial details to a shopping website. Many websites are easily hacked which results in gaining your financial information, which can be used by hackers. These virtual card providers enable you to make online payments more difficult, so that others cannot be able to purchase from your credit card.

• Instant Online Payments

Almost everyone has mobile phones in their hands, wherever they go. It is extremely beneficial for them to have a virtual card on their mobile, as they do not need a credit card in their hand while paying for something. By adopting a virtual card number, you can execute payments instantly from your mobile phone. Apple Pay facilitates its users by providing them ease to connect their virtual card on iPhone and Macbook together, by just confirming their face ID or touch ID. It also allows you to purchase anything via a mobile application or a web browser, without any need to connect with your wallet.

• Receive Cashback Rewards On Each Purchase

There are several rewards credit cards that offer users a 1 percent cashback on each payment, executed via virtual card. These rewards are for groceries, transportation, and also in the form of money on your credit card. It is extremely beneficial for individuals to earn cashback, by just using their virtual card for online shopping. This cashback is also redeemable via bank statement credits, gift cards, sporting events, and also for charity contributions.

• Go Online Shopping Before The Card Reaches

If you have just applied for a credit card account, and it has been opened successfully, then you do not need to wait for some days for your credit card to arrive via mail. You can instantly go online shopping by using your virtual card number. Your account must be activated before you transfer money to your account, and start shopping. This helps you to earn more reward points or cashback, and enables you to maximize your savings on every future purchase.

• Enhanced Accountability

The most important benefit of a virtual card, is to keep the transactional records of all your purchases made via these cards. There is no need to manage the payment records, as these are already well organized and streamlined, which eliminates the need to keep receipts of every transaction. It is also beneficial for businesses, as they do not need to track the transactional record of the payments made for their business purposes. In simple words, the reconciliation of transactions will be easy for them. 

How To Use Virtual Cards Securely?

It is a major concern among credit card holders, as they are worried about the risks of their virtual cards being hacked. You can make online payments securely from your virtual card, once you figure out how to do it effectively. You need to evaluate the authenticity of the website, and whether it is trusted and uses secure payment methods before entering your financial information on it. You can also monitor your daily transactions, and figure out if any transactions were made by an unauthorized person, or if any related activity occurred from your card. Once your virtual card expires, you need to carefully eliminate the details to prevent any harm.

Future Developments Of Virtual Cards?

The adaptation of virtual cards will further grow in the future, as the technology is evolving in transactional processes like digital wallets, blockchain, security, and ease in digital transitions. Everyone wants improved security in online payments, as virtual cards are defining new rules for online transactions. Some virtual cards are also adopting biometric authentication, like a fingerprint, and face detection to increase a layer of security to online transactions. Many financial institutions are implementing Artificial Intelligence (AI) and Machine Learning (ML) models in financial activities, to eliminate fraudulent events.

Conclusion

Virtual cards are a great way of payment for online shopping, as these eliminate the security threats from transactional activities. These virtual cards are separate from credit cards and prevent the user’s identity from being exposed on the internet. It adds an extra layer of security while online shopping. The credit card issuers offer a variety of virtual cards for free. These are created for online transactional purposes, and some issuers also allow virtual cards for specific stores, and you can buy items from that specific store only via this card. You can also gain reward points in exchange for purchasing something from it. These rewards are in the form of points, cashback, and miles for traveling.