Online: Enter the virtual card details when buying online.
Over the Phone: Give the virtual card details when purchasing over the phone.
Via an App: Enter and save the virtual card details as a credit card when buying via an app.
Physical Store: Key in the virtual card details in the card reader at a physical store.
These virtual card details are:
· Card number
· Expiration date
· Security code
· Billing address/zip code
Voila! Easy and simple in making business purchases using your virtual card.
To keep payments safe from hackers or credit card fraudsters, virtual cards can be used by setting a preferred credit limit and validity date. What’s more, when making a purchase, make sure to use the zip code of the virtual card if asked by the merchant. Credit card issuers and network will often check at the time of the purchase that the zip code of the credit card on file matches the zip code entered by the buyer at the point of sale.
Keep in mind though, when making a purchase, there is a difference between the card expiration date and the validity dates. The card expiration is the Month/Year that is printed on any credit card. Merchants will often ask you for that information when making a purchase. The validity dates (start and end dates) are composed of a Day/Month/Year and will never be asked by a merchant. They are available for virtual cards only and indicate whether or not the card is active or cancelled.
When sending/requesting a virtual card, make sure that the authorized spending limit is not too close to the expected purchase amount. Some merchants (e.g. car rentals, hotel, taxi apps) make a temporary hold on credit cards before their service is fully rendered. That hold is often a preset amount (e.g. $200 for a car rental, $20 for a taxi app, etc.) or an amount that is equivalent to the expected cost of their service plus a buffer (e.g. ~25%). This hold temporarily diminishes the virtual card’s spending capacity and is not released until the actual charge is submitted, so it’s best to consider these potential holds when setting a virtual card spending limit.
The biggest downside for virtual cards is that a physical card cannot be swiped. And, of course, although virtual cards are widely accepted, some merchants are still skeptical when they see a credit card image on a screen, and their staff might not be trained to accept virtual cards. Nevertheless, virtual cards can serve as an effective buffer between your company’s actual credit card details and merchants, while simultaneously equipping employees with the ability to proficiently make business-related purchases.
Watch this video to learn more on how to use a virtual card.
As an expert in online payment security and virtual card technology, I have a deep understanding of the concepts and practices involved in utilizing virtual cards for secure transactions. Virtual cards are an innovative solution to safeguarding financial information during online, over-the-phone, app-based, and physical store purchases.
Let's break down the essential concepts mentioned in the article:
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Virtual Card Details: Virtual card details typically include the card number, expiration date, security code (CVV), and billing address/zip code. These details are used across various purchase mediums, such as online, over the phone, via apps, and at physical stores.
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Security Measures: Virtual cards offer enhanced security by allowing users to set credit limits and validity dates. These parameters help protect against credit card fraud or unauthorized transactions. Additionally, using the zip code associated with the virtual card during purchases adds another layer of verification.
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Expiration Date vs. Validity Dates: The expiration date on a credit card refers to the month and year printed on the physical card. Validity dates, exclusive to virtual cards, consist of day, month, and year, indicating the card's active or canceled status. Merchants request the expiration date, while validity dates remain internal and are not asked during transactions.
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Authorized Spending Limit: It's crucial to set an authorized spending limit on a virtual card that allows for potential holds made by certain merchants, like car rentals or hotel bookings. These holds temporarily reduce the card's spending capacity until the actual charge is submitted.
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Downsides of Virtual Cards: While highly secure, virtual cards lack the physical presence necessary for swiping, which might pose challenges with merchants unfamiliar with accepting them. Not all merchants are equipped or trained to handle virtual card transactions, despite their widespread acceptance.
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Enhanced Security and Efficiency: Despite limitations, virtual cards act as a protective barrier between a company's actual credit card information and merchants. They empower employees to conduct business-related purchases efficiently while maintaining a secure payment environment.
Understanding these concepts is vital for utilizing virtual cards effectively, minimizing fraud risks, and ensuring smooth business transactions across various platforms.
If you're interested in further exploring this topic, I recommend watching educational videos or tutorials on virtual card usage for a more comprehensive understanding of their implementation and security features.
