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Cashless payments have taken over all sectors, from banking and finance to e-commerce and retail. The usage of online payment systems like e-wallets, UPI, internet banking, etc., has rampantly increased. While these payment options offer ease, they may not always provide security.
Virtual credit cards, a technology introduced in 2009, came to aid. A virtual card is a one-time-use credit card that lets you shop without exposing your actual credit card number, thus preventing data breaches and increasing transaction safety.
Virtual cards are expected to generate more than 14 billion dollars in revenue for card providers by 2022. While using a virtual credit card ensures minimal online fraud, it also helps you save money. However, before directly jumping on to it, let’s understand the process of applying for a virtual credit card.
How to apply for a virtual credit card?
To avail of virtual credit card benefits, you first need to apply for a virtual card. The application process is relatively simple. However, you must ensure that your credit card provider offers virtual credit card services.
We’ve mentioned the steps below to apply for a virtual credit card.
- Get a credit card from a provider
- Login to your account online
- Go to Settings
- Download the virtual credit card provider’s app and login into the app
- Look for a virtual credit card and access the card number
- Accept the generated 16-digit card number, expiration date, and security code
- Choose the duration you want the number to be valid
- Start using the card
You should apply for a credit card with Juni, especially if you want to manage your business’s finances better. With Juni, you will get as many virtual cards generated instantly. So you can make bulk purchases and earn cashback and rewards on certain eligible transactions.
While virtual credit cards are not limited to an individual or a business, they are an excellent way for online businesses to keep track of invoices and overall finances.
Let’s now look at five ways virtual credit cards help you save money.
1. Virtual cards save you from online fraud
One of the easiest ways to save money is to prevent money theft!
Credit card fraud is the top identity theft method in 2022. Customers or businesses that use credit cards to carry out digital transactions are more likely to be duped. One of the primary reasons for this is–credit cards do not have a short expiration time, making them vulnerable to thieving.
Since virtual credit cards have no correlation to physical credit card, the chances of fraud significantly decrease. We’ve listed a few benefits of virtual credit cards for you to better understand their importance.
- They are more secure than credit cards since they don’t expose the actual card credentials to the vendor or to a hacker
- Issuers do not charge you to get a virtual credit card
- You can immediately block your card if you suspect any threat
- It uses a single number for each transaction
- They protect you from a data breach due to an unstable network connection
Such benefits ensure the buyers’ identity remains safe and they do not get under the claw of fraudulence. There are multiple strategies for businesses to prevent online fraud. However, using virtual cards is a passive way of saving money and also benefits your business by keeping it from ruining its reputation due to fraud.
2. Virtual cards do not cost interchange fees
This one’s a biggie. Unlike physical cards like debit and credit cards, virtual cards won’t cost you interchange fees. Interchange fees are a fee that is required between banks to be paid to accept card-based transactions. Especially for the sales and services sector, it is a fee that a vendor’s bank pays a customer’s bank.
Many factors like industry, card type, frequency of transactions, and transaction type play a role in varying interchange fees. All these factors are automatically erased when using virtual credit cards. However, some vendors may cost you interchange fees, but they can lower them by using a membership-based model or negotiating their pricing structure.
This means you can keep making transactions without actually paying for the plastic of the credit card. So when compared to other cards, virtual credit cards have relatively low fees.
However, make sure to know if a vendor or a supplier accepts virtual card payments in the first place.
3. Virtual cards offer cashback and rewards
Earn more to save more.
Just as preventing online fraud is a passive way of saving money, so is receiving cashback and rewards. After all, earning money through your virtual card takes you a step closer to saving money in the future.
Cashback offers and rewards are also a great way to generate extra revenue. You may find the rebates minimal initially; however, over time, the cashback rewards tend to increase, making switching to virtual cards even more preferred.
It is about choosing the right program that can help you save more money. For example, use these cards to avail of streaming services like Netflix and Hulu or for subscriptions like Uber Eats. You can earn money by purchasing a service from a vendor or supplier.
You will see a lump sum amount by making money this way through such frequent transactions in the long run.
4. Virtual cards let you redeem points
Virtual cards are an excellent choice for businesses. The key, however, is choosing a card that’s right for you. Don’t limit your options to business cards. Sometimes, a personal card may offer more perks and flexibility than a business credit card.
Choose the card depending on the application. For instance, if you own a company with employees, consider choosing a card that offers travel rewards. After all, science backs that travel boosts productivity. You will thus save a lot on hotel stays by redeeming those travel reward points.
Similarly, if your business makes big transactions regularly, choose a card that offers cashback on large purchases. You can also use multiple credit cards for different trades and earn various rewards. Ensure you keep an eye on those reward points and use them appropriately, saving money.
5. Virtual cards help you control your expenses
It is easy to get swept off by the glaring online retail world. One minute you’re swiping through the options; the next, you’re filling the cart and emptying your credit card. Here’s when virtual cards come to aid. Since they have a one-time-use card number, you can link it only to one merchant at a time. Moreover, they enable you to set your spending limit for each merchant.
For each transaction with all merchants, you can keep track of all transactions made. Keeping track of your finances will help you better manage them. Virtual credit card purchases will be displayed in your monthly statement and your actual credit card statements. You can even manage your invoices from an online dashboard if the card provider’s app has such a feature.
Managing your personal or business finances is vital to plan your future payments better, eventually helping you save money. After all, you can plan your finances better when you precisely know the expenditure. Due to its benefits and potential growth, major companies and startups may incorporate VCC (virtual credit card) systems.
Wrapping up 5 ways to save money while using virtual credit cards
Hopefully, the article helped you understand how to save money using virtual credit cards. With the benefits mentioned here and a few others, it is worth considering switching to virtual cards as a digital payment system. After all, secure digital payments significantly influence a business’s credibility. Plus, we live in a modern and tech-savvy world, so sticking to old methods makes no sense.
While the validity of a virtual card varies for each credit card provider, it is still one of the safest ways to make digital transactions. So whether you want to prevent yourself from being duped as a consumer or a business, make transactions using virtual credit cards and manage your trades efficiently.
Be wise. Be virtual!