What is a virtual card

It is believed that a virtual card (VC) differs from a regular bank card only in the absence of a physical carrier. However, these means of payment have a number of important differences. We talked about them in this article, and also explained what is good and how the virtual form works.

Recently, banks and other financial organizations offer various digital products, each of which has its own functionality: electronic money, virtual and digital payment media. 

Digital cards do have the same capabilities as plastic ones. Unlike them, virtual ones are created mainly for safe online purchases, they have a limited validity period, a rather modest transaction limit, and some familiar options are not provided. Usually they cannot be added to payment applications (Apple Pay, Google Pay or Samsung Pay) and paid with a mobile phone. With many virtual accounts, you cannot withdraw cash and make transfers. In terms of functionality, such financial products are closer to electronic money than to debit or credit cards.

Why you need a virtual card

Comparing the capabilities of digital and real products, it is not obvious why order the release of such a limited means of payment. In addition, digital payment instruments provide the same opportunities as the usual plastic ones, and all the conveniences of a digital tool. But the virtual card has its own tasks and the advantages caused by these tasks. The main one is safety.

Plastic can be stolen, as well as the details can be copied from it with a special device in the payment terminal. In addition, physical media are simply lost, they are forgotten at ATMs and at the box office. If the data of the payment instrument falls into the hands of fraudsters, it is likely that all savings will be lost. Credit accounts in this regard are even more dangerous: you can not only lose your funds, but also remain indebted to the bank. 

Digital options also do not guarantee peace of mind: the fact is that when paying online, they provide the online store with the same verification data. Fraudsters can steal this information using viruses, fake sites, special programs. The virtual card reduces the chance of identity theft to zero by using dynamic information that changes with each purchase. That is, even having gained access to information about a separate payment, the hacker will not be able to use your money - the same codes will not work a second time.

Another argument in favor of a virtual means of payment is the ease of issuance. They can be ordered completely online without visiting the branch. An existing client of the bank just needs to fill out a small form in the application or personal account of online banking. Persons who have never been served by the selected bank cannot order a full-fledged personalized card, but many credit institutions provide hybrid products for them, similar in functionality to electronic money. Typically, such virtual instruments have a very small limit of transactions, but they have all the details necessary for online shopping: number, expiration date and verification code.

How it works

A virtual card like Ezzocard can be issued as a standalone product or as an additional token to the main account. In the first case, it functions as an electronic wallet: only for online payment and within the settlement limit set by the bank. You can order, reissue and block the card from your phone or from online banking.

When a virtual card is issued as an additional one, it gives access to an online account within the limit set by the client. If the details fall into the hands of fraudsters, they will not have access to all the funds of the account holder. The virtual carrier has its own details, when making payments in this way, the data of the main card remains hidden not only from potential intruders, but also from stores or payment systems.

How to use

The full functionality depends on the policy of the issuing bank: some credit institutions allow the use of virtual instruments only as an electronic wallet, while others have functionality closer to the digital version of a regular card. 

It is better to find out what opportunities the card you use or plan to order on the bank's website or in the application. 
The set of features of virtual products does not match for different issuers, but the procedure for using such tools is approximately the same:

• For purchases on the Internet: just enter the data that the system requests on the payment page - usually this is a number, expiration date, CVV or CVC code. Sometimes the owner's name is required, but this line is more formal: you can enter any first and last name, and it doesn't matter if the card is personal - the system does not check this information and accepts any combination of letters. By the way, some experts do not recommend indicating real data in this line - they can be used to find the cardholder's page on social networks, which gives fraudsters extra information.
• The order of replenishment depends on what it is attached to. If the virtual media has its own bank account, you can replenish the balance using the same methods that deposit money into the bank. Most issuers allow you to deposit money by transfer from another account and in cash (at a branch or through a terminal). You can transfer funds both by account number and by 16-digit card number.