What to Look For in a Virtual Credit Card

When it comes to managing your budget and meeting your spending needs, find out what to look for in a virtual credit card.

75.7% of American adults carry at least one credit card. Responsible credit card use is an excellent way to build credit, stay protected from fraud, earn rewards, and keep better track of your spending.

Today, there are several types of credit cards available. Virtual cards are a new style of card growing in popularity. If you’re a frequent online shopper, a virtual credit card is a must. Keep reading to find out more about them.

What is a Virtual Credit Card?

A virtual credit card works like a regular credit card but without the physical card that you keep in your wallet. These credit cards are randomly generated card numbers tied to an existing account. The randomly generated number masks your account information.

What are the Benefits?

You may be wondering why it matters if the virtual credit card links to an existing account. There are several benefits to using a virtual card.

Better Fraud Protection

Virtual cards provide added protection because the user’s card information isn’t visible to fraudsters or during data breaches. If you’re someone who shops online often, they can help bring peace of mind.

Great for Businesses

Business credit cards are often used sparingly to keep business finances protected. With virtual credit cards, account information stays protected while providing the opportunity to allow more access.

If you’re planning on using these cards for business, choose a virtual credit card company that suits your needs. Look for one that allows complete visibility and controls for the account holder, the option to issue several cards, and integration with your accounting.

Virtual cards at Bento provide intuitive card-based spend management perfect for business use. 

Simple to Receive

Virtual credit cards are easy to receive. In most cases, it’s as easy as contacting your provider to request one. Some have limits on how many you can receive, while others are unlimited, so be sure to confirm the guidelines with your institution.

Possible Downsides

While virtual cards are great for online shopping, they can be a bit complicated when making returns or reservations. In these instances, most companies need to verify the original card to proceed.

Because you don’t have a physical card with you, they are also limited to online shopping only.

How to Choose a Virtual Credit Card

Choosing the best virtual credit card for your needs may seem like a challenge if you’re searching outside your standard banking institution. When deciding how to choose a virtual credit card, you’ll want to examine the following:

  • Offered by a credible provider
  • Real-time visibility
  • Amount of spending control
  • Accessibility
  • Fees

Skipping your research can leave you with annual expenses and feeling like you have no control over your account. Do your research on the features and read the fine print before deciding on an option.

Learn About the Latest Tech

The virtual credit card is a new technology designed to protect online shoppers from fraud and keep their account information safe. If you’re interested in learning about other ways technology can play a role in your day-to-day, head over to our Technology Guide for more helpful articles.

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