Many consumers only use online banking to check their account balance or make transfers between accounts. It can also be a means for foreign business owners to take advantage of everything the American economy has to offer. Companies with foreign founders can make purchases and have access to all of their funds anywhere in the world using a virtual corporate debit card.
Due to the fact that many businesses have used virtual debit cards to pay their suppliers and merchants internationally in recent years, they have become very important. It is essentially a one-of-a-kind number that serves as a debit card for your bank account.
In this post, we’ll explain what a virtual debit card is in detail, as well as the benefits of using an online card and how to use an online debit card right away. Without further ado, here is a breakdown of what a virtual debit card is.
What is a virtual debit card?
A debit or credit card that can be established and managed online using a website or online application is known as a virtual payment card, sometimes referred to as a faux card number.
Without the physical card itself, a virtual debit card functions just like a physical bank card. A virtual debit card has 16 randomly generated digits, just like a regular debit card, along with a card verification number and an expiration date.
An online debit account or an already-used credit card serves as the foundation for a virtual card. You would simply enter the debit card number and other card data while making purchases of products or services online.
While utilizing a virtual debit card rather than a physical debit card has several advantages, you cannot use one when chip or card swiping is required. Below, we’ll go through a few of those benefits.
How do virtual debit cards work?
A virtual debit card can be used anywhere, takes debit, and functions similarly to a regular debit card. This makes it simple to use for online transactions because it has the same 16-digit debit card number, expiration date, and CVV number.
Even if you don’t have a physical card, you can still use a virtual debit card to make in-person purchases. You can add your online virtual debit card information to your smartphone’s digital wallet, enabling you to pay with a tap or QR code at any merchant who accepts such methods.
Difference between virtual cards and digital card
Despite the fact that virtual and digital cards are distinct, consumers occasionally mix them up and mistake them. What you need to know is this:
- Virtual cards are only available in electronic form. The card won’t be used in its physical form. A virtual card is mostly stored on your phone and can be used to pay contactless in stores or online.
- Digital cards can be issued as part of the physical card procedure and are the digital equivalent of a physical card. The physical card can be kept in your wallet, while the digital card can be kept in your electronic wallet. The linked account is utilized by both.
How to Use a Virtual Debit Card?
You can conduct secure and quick transactions on online retailers using card numbers. Most individuals believe that virtual cards can only be used to make transactions online. However, your virtual company debit card can also be used to make purchases at eateries and retail establishments anywhere cards are accepted.
Who needs a virtual debit card?
The virtual debit card is an innovative solution for hassle-free payment, and most individuals and business owners should have a virtual debit card with them. For instance, if they are going to any place and have forgotten to carry their physical debit card, then with a virtual debit card, they can perform payments.
How to acquire an online virtual debit card?
The procedure for obtaining an online virtual debit card is comparable to that of a standard card application. Here are the two common methods of application.
- Get through your Bank: Many banks provide their clients with virtual debit cards via their websites or mobile apps. You can use the bank’s mobile app to make purchases after you have your virtual debit card, or you can add the card to the digital wallet on your smartphone. Banks that offer virtual debit cards will link the card to your current account to save you the time and inconvenience of opening a new virtual debit card bank account.
- Through Online Banking Service Providers: If your bank doesn’t offer one, online service providers can give you a virtual debit card for your online wallet. Make sure you compare the available options to choose the one that best suits your needs. Many online retailers offer incentives or promotions to entice clients. Being an instant virtual debit card, remember that before using it to make a transaction, you’ll still need to fund the online account or link it to an existing bank account. You can get a virtual debit card from Cheqly.
Benefits of virtual debit cards
For those who don’t want to carry around a physical card or who want to make shopping online and on their smartphone convenient, virtual debit cards are an excellent solution. The advantages of using virtual debit cards are as follows:
- Immediate card creation: Unlike traditional cards, virtual debit cards don’t need to go through the entire activation process. As long as there are funds in your account, they can be instantly created through websites or apps and used to make any kind of purchase. This implies that you may easily have a card for each member of your staff for your company. This will expedite new acquisitions, allowing your US business to expand more quickly.
- Convenience: Cards can be created and activated immediately, allowing you to start using a linked account for purchases without having to wait for a card to be mailed to you.
- Reduced costs: Virtual debit cards can have lower fees than traditional debit cards because they are simpler for banks and internet service providers to manage.
- More Secure than Cash: Unlike real debit cards, which may be lost or copied physically, virtual cards cannot. Your phone’s password and, in some situations, your app login protect the card in your digital wallet, which might keep it secure even if your phone is taken.
- Control: You may establish spending restrictions on some virtual debit cards, which will help you stay on top of your personal money and budget. Find out more about the value of including your spending in your personal budget.
Get a virtual debit card in minutes and start enjoying all the benefits!
If you’re looking for a way to streamline your business costs and effectively track your spending, look no further than the virtual card. Using this type of payment method can significantly simplify managing your finances, especially if you operate in the US.
Now is the time to choose the ideal banking tool that supports your needs. You have understood how to utilize your virtual debit card and all the benefits it can bring to your company.
Our Cheqly virtual debit card gives you access to perform transactions from anywhere. You can easily activate, view information, and change the debit PIN of your virtual credit card. Sign up for a free Cheqly account today, get your virtual debit card in minutes, and start enjoying all the benefits.