Pros and cons of virtual credit cards

The easiest means to pay for things you buy nowadays is a credit card, which was roughly invented in the 1950’s. Swiping the card or pushing it into a chip reader is being replaced by simply tapping the card on a reader or a computer screen, which is convenient to both the buyers and retailers. But increasing the ease of paying has also increased the chances of being hacked and the possibility of fraudulent activities. The same identifying information is used whenever you use your credit card. This means that once the data is stolen it can be used by anyone, not just you.

Virtual credit cards help to solve the security problems of credit cards. These cards generate a token for every single transaction, which is transmitted between the bank and the retailer to put through the transaction. These can be used online or over the phone. Once you sign in to your account, you can generate a one – time token, which includes a unique card number and security code. If your virtual card is linked to your physical credit card, transactions will show up on statements like usual. Virtual credit cards are available in two ways: either directly from your bank if you have a credit card issued by one of the banks that offer this service, or by linking a pre-existing card from another bank to an online service.

Here are some of the Pros and Cons of using virtual credit card

Pros:

1.       Security – “Security is the main advantage of digital cards. You minimize the risks of “leaving” your bank details in an unreliable place when making online payments. Setting limit on the card help to spend in the planned manner. if scammers try to write off money from a virtual card, then they will not get access to the main account. Even if money is “taken away” from the figure, they will be able to do it only within small limits.
2.       Universality – like any bank card, a virtual one helps to pay for goods and services on the Internet around the world thanks to international payment systems. This is much more convenient than shopping with online wallets, through which payments do not pass everywhere.
3.       Convenient and fast issuance – you can order a virtual card in your bank’s mobile application and receive it within a couple of minutes. This will not only save time, but also help to issue a digital card at any time. The main thing is to have access to the network and the mobile application.
4.       Almost all virtual cards are issued free of charge and with free maintenance.

Cons:

Limited scope- a virtual card is issued in minutes, so you can quickly issue a new one at the end of the deadline.

Inability to withdraw- But even from this situation, you can find a way out. For example, upload a virtual card to the Apple, Samsung or Google Pay apps, and then you can pay with it anywhere that accepts contactless smartphone payments.

Set funds limit- small limits on payments and transfers, but when security comes first, the restrictions fade into the background.