Have you ever heard about virtual credit cards? If not, you are in the right place. With the advancement in technology, our lives are becoming better and easier. One of the examples of this statement is Virtual Credit Cards.
If you are wondering, a virtual credit card is not some hard, plastic card like credit cards, prepaid cards, or debit cards but it’s a 16-digit unique credit card number. You can say it is the next level of cashless payment. To get your virtual credit card, go to your bank’s website into the section of VCC, generate it, and you are good to go. But why should you get them? Well! You can decide by looking at the 10 benefits of virtual credit cards given below.
10 Benefits of Virtual Credit Cards
Reduced Exception Processing:
One of the benefits of using virtual credit cards is that for every payment your virtual credit card has a time limit as well as maximum credit limit. With a credit limit, you can’t process payment higher or lower than the amount already set. Whether it is a single-use credit control virtual card or a dynamic one, you can set the amount you want. Such control offers you convenience and protects you from consuming more time and making costly processing. What a relief it would be!
If you are one of those people who never know why and how you spend more than expected; a virtual credit card will surely benefit you because it lets you set a limit in which you can spend.
Safety and Control:
Wire transfer, credit cards, debit cards, and checks are financial instruments that are fraud-susceptible. Payment cards were made to protect users from frauds and theft. As said earlier virtual cards are a next-level payment method that doesn’t require you to swipe your card for making payments, thus fraudsters can’t cheat you.
Moreover, it offers you peace of mind and security as you can use this card for once. Once you have used the virtual credit card, it is of no use then, as it becomes invalid. In addition to this, after 24 hours, it expires automatically, thus saving you from the misuse of the credit card information. As the virtual credit cards are numbers and not physical cards, no one can duplicate them. This makes them safe for online transactions.
Bank Information stays private:
In terms of safety, another benefit of virtual credit cards is that your bank information is never exposed. As virtual credit card numbers are created randomly for just one-time transaction and as you know it entails a specific amount, therefore, it doesn’t have any trail to your physical credit card.
The electronic method saves more money :
If you are running an organization virtual credit cards are of many benefits to you. By using a virtual credit card for paying invoices, you are going to save money that you used to spend on mailing paper checks and printing. Moreover, the electronic method of disbursement is more attractive, and if not many vendors prefer virtual credit cards, you can convince them by communicating the value of virtual credit cards properly and mentioning that you prefer virtual credit cards as a payment method.
Due to check frauds, most businesses annually lose over $13 billion. Using virtual credit cards is going to lower the exposure to frauds. These cards also improve your cash management. Moreover, it strengthens your supplier/vendor relationships.
If you are not aware of wire transfer and ACH, you may be considering virtual credit cards to be the sole method of e-Payments. However, it is not alone. But it does have an advantage over ACH and wire transfer. The problem with wire transfer and ACH is that these e-payment methods don’t offer much space for remittance information. To add transaction details, ACH offers 80 characters only, whereas, wire transfer offers 140 characters to add transaction details.
As compared to these two methods, virtual credit cards don’t confine you within space limitations, as virtual credit cards enable you to simplify and eliminate the need for manual reconciliation, thus, speeding up the transition through e-payments.
Convenient to use:
As you know that virtual credit cards are not like other cards that you need to carry around everywhere. This makes them convenient to use as you don’t have to always remember to keep your card with yourself or facing problems when you forget to bring your card with you. Moreover, you can’t lose it. Therefore, it saves you from a lot of difficulties.
And also you can save the information related to virtual credit cards on your phone as the phone is the gadget you can’t go anywhere without because you are so used to handling all activities via your smartphone. You can use that information stored on your phone easily to make online transactions.
Moreover, it also enables you to use either a portion or all the pre-set balance. And the amount that you have not used will be sent back to your original bank account. Therefore, you don’t have to worry about your credit being lost or stuck.
Also, apart from shopping online and making online transactions, virtual credit cards help you book flight tickets, pay utility bills, etc.
One of the benefits of a virtual credit card is that if you ever want to cancel it you can use your smartphone and easily do it. It doesn’t require you to fill lengthy forms or submit a cancellation request to your bank, but it can be done within a few minutes.
Secured by Password:
If anyone is somehow able to get your virtual credit card, fortunately, he/she can’t use it, as it is secured by a one-time password. After you have set your spending limit on your virtual credit card, you will be provided a password on your mobile number that you have registered. Your payments are then validated by that one-time password (OTPs).
Excellent for overseas transactions:
If you find the overseas transaction to be difficult, virtual credit cards are excellent options to choose from. Virtual credit cards not only offer you some extra security measures but also provide the facility of zero cost application. Due to these benefits, for cardholders, virtual credit cards are now preferred over other modes of currency transactions across the countries.
Free to no cost:
Typically, virtual credit cards cost less as compared to other bank cards as you don’t have to pay for the card’s delivery because virtual debit cards are sent through the internet. Some virtual credit card providers charge fees on purchases, or for making virtual credit cards. However, there are other virtual card providers and banks that offer you virtual credit cards free of cost.
Virtual credit cards are becoming an appealing and popular method of e-payments and making online transactions. These are not the plastic cards that you need to carry around with you, instead, virtual credit cards are a number that you get and your payment is validated by a password. You can make online transactions anywhere, anytime without exposing your personal information. If you want to know about its uses and benefits, this article has enlisted 10 benefits of virtual credit cards. These benefits help you decide if you want one.