Using debit cards for payment and purchases across the globe has gained popularity since their launch in the 1980s. Today, people appreciate the benefits of paying online transactions with ease.
Like other businesses, technology has allowed the finance industry to advance the use of debit cards, hence, the emergence of virtual debit cards. They differ from the traditional plastic rectangular cards because they only exist in digital form on online portals or mobile phones.
The following highlights some of the benefits of virtual payment cards:
1. Safe and Secure Payments
Virtual debit cards are typically hard to copy or steal. Unlike the traditional ones that criminals can clone or steal, virtual debit cards are impossible to tamper with. Account theft is among the top e-commerce frauds criminals use to steal debit cards and then use them in making purchases without the account owner’s knowledge. However, it’s impossible to steal information from virtual debit cards as they don’t have physical copies, ensuring the security and safety of your payments.
2. Fast and Easy Acquisition
The traditional debit cards can take days to arrive at your residence. Apart from the card creation process, the issuing company might need more days to verify your identity. Placing an order for the physical debit card from abroad or before a long weekend can also prolong the waiting period before you can start spending.
Meanwhile, virtual cards arrive immediately after completing the application process as it doesn’t require on-site production. You only have to check and confirm the card details, allowing you to start using it without waiting for days on end. They’re also accepted by almost all vendors and utilities, ensuring their reliability as a payment option.
Virtual cards are also convenient as they eliminate the hassle of using a company card. It allows you to make quick purchases through your mobile phone without looking for a card you might have misplaced somewhere in your house or under your purse. This mobile element makes for a seamless shopping process while protecting your information.
4. Ease of Cancellation
You might want to make only one or two purchases from a card. This includes purchasing something from websites you don’t fully trust or performing one-off purchases that you don’t want to reflect on your bank statement. This is where virtual debit cards come in handy because they let you create an account and perform your purchase, then immediately cancel the card with no strings attached.
5. Controlled Spending
Virtual debit cards are an excellent choice for specific spending activities because they can allow you to control how much you spend on your card. They are ideal for businesses that offer their staff personal spending limits or parents who limit the online purchases of their children.
6. Staff Empowerment
Virtual debit cards are also ideal for businesses with employees who make purchases on behalf of the establishment. However, tracking the spending habits of each employee using one physical card can be a tiring task. In addition, there would be too much paperwork if you need to issue a card to every employee.
With virtual cards, you can issue multiple cards to your employees in one go. Thus, you can easily track the spending of each team member. With this, your business can progress as the virtual company card eliminates the need to wait for a physical debit card before you can start making purchases. Implementing limitations like spending limits also guarantees that employees would only buy necessities.
7. Cash Flow Tracking
Some businesses often deal with a messy cash flow when making payments to suppliers and vendors before a specific period. Virtual cards allow you to track the flow of payments made and know the available funds through the data in the system, thereby improving the efficiency and transparency of your payment processes. Indeed, virtual debit cards are gradually taking over payments for many businesses.
The use of virtual debit cards can reduce your carbon footprint because it eliminates the manufacture of a physical card. It might not seem much, but this makes sense when considering the number of expired physical cards thrown away daily. Therefore, you promote a positive impact on the environment by using them because they only exist digitally on phones or online.
The introduction of virtual cards, an improvement of the traditional physical cards, is due to the continuous advancements in technology. Most shoppers and businesses welcome their use in making purchases due to their many benefits. Thus, virtual debit cards can guarantee a fast, safe, secure, and seamless shopping experience.