Nowadays, people are more exposed to buying things online through online shopping platforms. And since the pandemic happened, and because of the fear of going out because of the covid-19, many have transitioned to buying essentials online. Many websites and apps were launched that are convenient for purchasing goods from clothes to foods and groceries as it also saves our time and energy from driving or commuting to go to supermarkets and malls.
Furthermore, what makes it more convenient is that online transactions are cashless as you can just pay what you bought online using debit or credit cards. These payment methods gave people the comfortability of not withdrawing cash anymore from their bank accounts where sometimes the excess withdrawals of money are used for something else unplanned. But paying online using cards can give you more control over the amount to be spent.
On the other hand, there are instances that physical cards have limitations and disadvantages when used for online purchases. One of the common challenges of it is that with a physical card, because of its fixed bank number, it is prone to be exposed for credit card theft. Thus, the spending limit that is available when using your cards on physical stores does not have the limit when being used for online transactions.
These are just some of the reasons why having a virtual card is highly recommended these days for you to use, especially if most of your transactions are done online. In this blog, we will share with you the benefits of using virtual cards instead of physical cards for your online transactions.
Convenience
Most physical cards are following the business hours of traditional banks. This means that when you use it for online transactions such as purchasing items in the wee hours, there’s a high possibility that the transaction made would not reflect in your account until the next day during the business hours of the bank.
It may not sound that important for you at first since your online purchase has pushed through. However, there are scenarios where the confirmation of your purchase might be guaranteed in real-time causing the processing and delivery of your order to be delayed. This could be a hassle on your end, especially if it is an international purchase.
On the other hand, when using virtual cards when online shopping, confirmation of the transactions are in real-time which saves your time and your order will be shipped as soon as possible. You can efficiently do your business with just a few taps on a phone, a laptop, or a tablet.
Security & Protection
Just like a physical card, a virtual card is linked to your debit or credit account. The only difference is that virtual cards are designed to be more secure—so your personal and financial information would not be compromised. Thus, it also has the option to be terminated at anytime as long as there are no pending balances and it uses a one-time password (OTP) method for every transaction being made.
Lastly, compared to a physical card, it lacks a magnetic strip and a visible card number making it harder for scammers or identity thieves to get your information. So, as long as you keep your card number, pin, and OTP secured, there’s no way others can infiltrate your account.
More Control On Spendings
Compared to a physical card, with a virtual card, you’re consistently notified of your spending. You can exactly limit the amount you would want to spend and other virtual cards have the limits to lock it once the limit is reached.
Not only that, most virtual cards have cashback or rebate offers for everytime it is used making each transaction fee have a lower cost.
Track Cashflow Wherever, Whenever
Virtual cards are accessible via an online account or an app, where it also gives you real-time breakdowns of your spending which makes it easier for you to monitor the flow of your cash. This is compared to physical cards like a credit card where you will wait for your billing statement to arrive before you can deal and review your previous spendings.
Designed For Online Transactions
Virtual cards are truly designed to be used for your online endeavors of purchase. It means that it is flexible, more controllable, and more protected for your sake. With this, you can skip the hassle of the subscription cancellation process because you can do it at any time you want and it will reflect within a very short period of time. Thus, with virtual cards, any assistance you need for this would be available 24/7 through the online banks where you avail of the service.
The Gist
In conclusion, now that we’re in the digital era, many transactions are being done online—from shopping to sending money and to paying bills. And banks that offer virtual cards understand that your personal and financial information should not be compromised. This is why they offer and suggest using virtual cards for you to use online transactions. This means that compared to a physical card, a virtual card is temporary where it masks the number from your actual card leading to protecting your information from any breach.
