With the digital era taking over the world, conventional payment methods have been replaced by online payments. This new form of payment method is quickly gaining popularity. One significant change has been the introduction of virtual prepaid cards. In this article, we will explore their work and how advantageous they are.
Virtual prepaid cards are created and dispatched electronically. After receiving this card, one can make a one-off payment or numerous ongoing transactions with it. You have to add funds before you use the card for payment. After that, it is pretty similar to how plastic cards work – you need to provide the 16-digit card number, security code (CVV), and expiry date.
These cards are valid at any place where Visa® and MasterCard® are accepted. So, users have spending freedom. Virtual cards have a peer to peer payment app, which ensures user convenience and safety. This enhances the e-commerce shopping experience.
Loading And Delivery Of Virtual Prepaid Cards
Usually, employers or merchants issue these cards. They send funds electronically and load the cards. After that, the cards are emailed to a list of recipients, linking to a quick-launch screen.
With a mobile app or online portal, the cardholders can view the current balance and history of the transaction.
All virtual cards are intangible; they don’t have to be manufactured or printed. So, there can be instant global distribution. The whole delivery process, from card designing to its issuing, takes about 3-4 weeks. But physical cards need 6-8 weeks for their production.
Advantages Of Using A Virtual Card
- Secure And Discrete Payment Facility
You don’t need to provide any private debit or credit card details when paying with a digital card. No payment made by you has any link to your bank account. Virtual prepaid cards provide a mobile money payment solution.
- Effective Budget
You can only spend the amount that is on the card and can monitor your online expenditure. If a mobile app comes with the card provider, downloading it will notify you when the transactions get completed.
- Spending Freedom
Most virtual cards have wide acceptance around the globe as they have MasterCard or Visa connections. You can even top up some of these cards with cash. This is perfect for people who don’t have adequate banking facilities but wish to make payments online.
- Use The Currency Of Your Choosing
You will get a currency preference option in some virtual cards. So, you can use the currency as per your preference – the one chosen by you doesn’t have to be the local currency.
- Quicker Payment
In the case of virtual prepaid cards, you don’t have to wait for the card and the PIN’s arrival on the post. If convenience and speed is your priority, virtual cards are the one for you. When you get approval on your application, you can instantly use them. They’ll be emailed to you or added to your digital wallet solution.
Moreover, you don’t have to pay ATM transaction fees and do online shopping with ease. You can customize them and build brand awareness. The funds are instantly delivered and there is less risk of fraud.
Virtual cards decrease production costs and can be an excellent promotional tool as they can act as vouchers or gift cards. With corporate logos branded in them, these cards will provide permanent advertisements. They’ll have a positive impact on customers who are using these cards over a lengthy period.
Getting A Virtual Card
It is a straightforward process – you have to make an online application. After getting the card, you need to add funds before starting any payments. There is no need for credit checks as the card is prepaid.
Disadvantages Of Using A Virtual Card
You cannot access your virtual cards through ATM and only the issuer can reload them. Therefore, you can’t withdraw cash or transfer money from your bank account. You also need to go through extra steps (input details have to be provided, whereas physical cards can be swiped at the store) when you want to access the cards for the cashless payment system.
You won’t be able to make larger purchases as the card balance limit is $2500, though this depends on the card provider.
Different Ways Of Using A Virtual Card By A Company
- Incentive Programs By Corporate
Companies can use virtual cards to inject a morale or engagement boost in their employees. These cards can be used to offer bonuses, gift cards, and travel perks. They can be emailed to any part of the world, so they are an ideal choice for remote teams or global companies.
They are cost-effective too. Virtual cards give endless options to the employees as to how they want to spend the funds, which isn’t an option in the case of physical cards.
- Marketing And Sweepstakes Campaigns
Virtual prepaid cards are an easy and effective marketing tool. They require minimal cost and effort and are excellent prizes for contests or giveaways. Thus, the companies can promote themselves.
With the growing demand for digital marketing and online shopping, companies can attract customers by offering online redemption options.
- Part-time Or Remote Payroll
There are millions of workers employed part-time, gig or remote. Virtual cards are the perfect way to pay these lesser-earning or contractual workers. As they don’t have a regular payroll, the employers can reload their cards when the need arises.
So, virtual prepaid cards have numerous perks, the most important being a mobile payment solution. Most of these cards come with eWallet App Development.
