Virtual Payment Card: Is it Right for You?

While physical credit and debit cards have been around for decades, virtual payment cards are a relatively new innovation. Designed to streamline transactions and enhance security, virtual payment cards can transform the way you manage personal and business finances.

In this article, we take a closer look at how virtual payment cards work and examine the benefits on offer to help you determine if virtual cards are right for you and your business.

What Are Virtual Payment Cards?

A virtual payment card works in the same way as an online payment made by a physical credit or debit card but, instead of submitting the information that’s presented on your physical card, you input the data that’s stored on your virtual card.

Like a physical card, a virtual card has its own unique number, as well as an expiry date and a card verification code (CVC). When you make a virtual payment card, it’s this information that is required to facilitate the transaction, along with your name and address (if applicable).

Where Can Virtual Cards Be Used?

When you’re making an online payment, you can make a card payment on any site that accepts physical card payments from your provider, such as VISA or Mastercard.

Many people assume that a virtual payment card can only be made online, but this isn’t the case. Instead of storing a card in your purse or wallet, a virtual card typically resides in a digital wallet. This can be stored on your smartphone, which enables you to make contactless payments and in-store payment portals via your virtual card.

What Types of Virtual Cards Are Available?

Virtual cards are available in multiple formats, including:

• Virtual debit card
• Virtual credit card
• Virtual prepaid card

At PayAlly, we’re dedicated to providing our clients with bespoke financial solutions that enable them to meet their objectives, which is why we offer physical and virtual debit card issuing for businesses. Maximising the functionality of your business account and simplifying your financial management, a virtual debit card can offer a variety of business benefits.

Does Your Business Need Virtual Debit Cards?

While many businesses accept virtual card payments, a significant number of businesses can also benefit from launching their own branded debit cards. As a recognised and reputable card issuer, we assist businesses that want to enhance their operations via branded virtual cards.

Although there are many reasons why a business may choose to launch its own branded virtual debit card, the most common are:

Manage Employee Expenditure

If some or all employees are permitted to use company funds for business expenses, then issuing virtual debit cards can be a simple and secure way to facilitate these transactions. As a virtual card can’t be lost in the same way that a physical card can, it protects your company’s finances while enabling authorised employees to make business transactions quickly and effortlessly.

Enhance Customer Loyalty

As well as being used in-house, branded cards can be released by businesses to customers. Traditionally, this has been in the form of physical cards, but the convenience of virtual card payments means that an increasing number of companies are choosing this form of incentive to boost customer loyalty and expand their services.

Launch Financial Services

The growing FinTech sector means that a considerable number of new financial businesses and institutions are launching all the time. Of course, undertaking the regulatory requirements to launch your own cards can be time-consuming and costly, which will inevitably prevent you from going to market as quickly as you’d like.

By using PayAlly’s white label card issuing services, however, you can launch branded virtual cards (and physical cards) quickly and efficiently. Combining the benefits of a branded card with enhanced speed, optimal security and dedicated 1:1 support, white label credit issuing can be a cost-effective way for FinTechs to launch and grow at a rapid pace.

What Are the Benefits of Virtual Card Payments?

If physical card payments have been working fine for decades, then you might be wondering whether it’s worth venturing into virtual payment cards. In fact, virtual cards can offer a wide variety of benefits, such as:

Instant Activation

Why wait for physical cards to arrive in the post when you can receive a virtual card almost instantly? When time is of the essence, virtual debit cards enable you to manage your company’s finances or launch new financial solutions quickly.

Reduced Risk

If a physical card is lost or stolen, a significant amount of money can be withdrawn from the account before the owner even realises the card is missing. With a virtual card, however, this risk is mitigated, which means the accountholder is less likely to suffer potential financial loss and the inconvenience of having cards stopped and replaced.

Segment Your Finances

When you have a virtual debit card, it doesn’t necessarily have to be linked to your main account. If you want to use separate accounts for employee expenditure, for example, you can rely on virtual debit cards to enable employee transactions and keep your main account restricted to top-level staff.

Enhanced Fraud Protection

When you segment your finances and use a virtual card with an account that’s separate to your main business bank account, it reduces the risk of your main account being targeted by fraudsters. Instead, your core business account details are kept securely under wraps, while day-to-day expenditure can be facilitated by virtual payment cards.

Increased Control

If you’re worried that an employee might go on a spending spree and rack up multiple virtual card payments, think again! It’s easy to set spending limits, which means employees will only have access to limited funds. This is particularly beneficial for businesses that need to issue cards to multiple employees for small or medium purchases.

Launch Virtual Debit Cards with PayAlly

Whether you’re issuing virtual debit cards to employees, expanding your services to increase customer loyalty or launching a new FinTech venture, we’re on hand to help you achieve your goals. To find out more about virtual payment cards, get in touch with our expert team now.