Technology is progressing at a breakneck speed. Every day, we witness technological innovations that are transforming our daily lives. Today, businesses operate primarily online, especially in the post-Covid era. The majority of transactions take place online, leading to a surge in the usage of Virtual Credit Cards. Follow this blog to know everything about Virtual Credit Cards.

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What exactly is a Virtual Credit Card?

As the name implies, Virtual Credit Cards are cards available online and have no physical form. Virtual card details such as card number, expiry date, CVV are available online. It performs the same tasks as a regular physical credit card. The only difference is that it is a safer and more straightforward method of making digital payments.
Virtual Credit Card allows the user to-
-set a spending limit
-set an expiration date
-restrict it to a single-use merchant

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Transitioning away from the Physical

Considering that the world is becoming more virtual, it is critical to be careful about innovations. You may either lead the way, stay close to the pack, or get left behind from innovation and technology. To stay up with the virtual world, one must first adapt to virtual ways of life.

Transforming traditional credit cards to virtual credit cards provides a secure, convenient, and controlled spending experience. Eliminating such physical clutter increases the user's flexibility and convenience.

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Why Virtual Cards?

1. Fraud Prevention

With technological innovations, the risks and dangers with such technology also increase. A virtual credit card provides an extra layer of protection by minimizing the risk since there is a spending capacity, and each transaction follows a unique number. Also, these cards expire and are valid for a short period, so hackers are not interested in them.
Even if thieves get their hands on a virtual card, it will not serve any purpose as it is impossible to track a Virtual Credit Card number to an account.

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2. Budget Spending

Users of the card can set a spending limit which helps to protect them from being overcharged during online transactions. Users can also freeze the card anytime or close it on a specific date. They can shut the card after their first online payment as well. It makes it easier for cardholders to keep track of their spending.

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3. Track online subscription

A virtual card tracks all online subscriptions. You'll be able to check whether you were overcharged by any merchant and cancel the card without having to change your payment information for each vendor because each subscription may have its own virtual card.

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4. More secure as there is no risk of physical card theft‍

You can cut the risks of physical cards by just switching to virtual credit cards. Virtual cards act as an extra layer of protection against cyber thieves who try to steal information through unsecured connections or data breaches. Virtual cards are useless to hackers since they create temporary account data for the merchant that is only valid for a single purchase.

Additionally, users can cancel the card by simply locking it or deleting it with just a click. The cancellation process is comparatively simple on virtual credit cards.

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5. Lower Cost

Physical cards are a costly affair. The costs of generating, mailing, and maintaining physical cards are zilch with virtual cards.

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Is there any downside to Virtual Credit Card?

Virtual Credit Cards do have some downsides. Some of them are-

• Funds transferred from the online purchaser's account to the merchant's account take time, and products are occasionally delivered before the merchant gets the payment for the product.
• Recurring costs were a headache because your card number would most likely have expired by the following purchase period.
• Some merchants may refuse to accept virtual credit cards in-store. However, certain virtual cards may be attached to mobile wallets such as Apple Wallet, Google Pay, Samsung Pay, and others. If your provider doesn't allow it and you have a PayPal account, you may link your virtual card to it and then add PayPal to your mobile wallet.

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Final Words

Despite these downsides, VCC seems quite promising, thanks to the security and simplicity they provide, as well as their growing acceptance in a variety of industries.

Codvo has skilled experts who will assist you in payment gateway integration, making your transaction much easier. Visit our website today for more payment gateway integration information.

Also, take a look at our case study to see how we have successfully assisted our clients with their needs.