Foronline shopping, virtual credit card is a tool that has become indispensable for various reasons. Yet many people do not master the process leading to its creation and continue to use the traditional blue card. However, using it on digital platforms poses enough risks to your bank account. It thus seems appropriate to switch to the virtual card, a modern solution offering the same services as the physical card with more security for your online shopping.
Virtual card: What is it?
The virtual card is an electronic card or e-card thathas the same utility as a physical bank card. However, its characteristics are somewhat different and its validity period is also different. Indeed, a virtual credit card is used for a specific online transaction.
To use it, it is necessary at the time of the financial operation to generate aCard number16 digits. This series of numbers will allow the card owner to make his purchase in peace. The dematerialization of the virtual map is a good action for the environment, since its carbon footprint is limited.
With the rise of e-commerce, shopping online has become part of our daily habits.But, when paying with a classic blue card, the risk of hacking or being stolen still exists despite the solutions developed by banks to ensure maximum security. A virtual credit card is thus the ideal solution to protect against security flaws on the Internet. In fact, there are two kinds:
- single-use virtual bank card;
- Recurrent virtual credit card.
Single-use credit cards are recommended for one-time payments (e.g. business). After the transaction, the card is destroyed to avoid any risk of leaking information. The recurring card, on the other hand, is ideal for regular or periodic payments (e.g. monthly subscriptions). The card is credited the amount of the transaction and once it has been completed, the balance increases to 0€ and new security numbers are generated in future transactions.
How to create a virtual credit card?
Whether you are a client of an online or physical bank, creating a virtual card follows a well-defined procedure.
- With your smartphone or computer, connect to yourclient spaceon the bank's application or website;
- Go to the section dedicated to virtual cards;
- Enter the amount of payment and the validity period of your card;
- Validate and the system analyzes the information;
- Receive a card number (temporary), a verification code and an expiry date.
Then use these contact information to finalize your online purchase. To do this, you just have to transcribe them in the boxes indicated.
As soon as the card is debited, the information will no longer be reusable for other operations. The virtual card is for single use.
What are the advantages of virtual banking?
The virtual card has many advantages. Here are some of them:
- Reducing fraud:To use its traditional Blue Card online, make sure the data is safe. Whatever, the trust you have in the purchase site, your contact information can fall into bad hands (piracy, cybercrime,...). To prevent such a situation from endangering your assets, it is preferable to use a virtual card strictly for online transactions or purchases;
- Digital subscription management:using a virtual card to pay for your different subscriptions, you avoid having an automatic debit on your main bank card when they end. You are then free to resubscribe or continue to pay for these services. As a result, you have a hand in managing the amounts you spend on these subscriptions;
- Budget control:debits on an ordinary blue card have no limit. Unless your account has an insufficient balance. This can lead to impulsive purchases and financial difficulties later. With the virtual credit card, you must necessarily mention a ceiling for your transaction. When the card is validated, the card is no longer useful and your bank account remains safe. You also have time to think about your next action and judge the interest of your expenses. In this way, your budget is better and you have less difficulty managing your money;
- Limiting the risk of loss or theft:a virtual card has no physical support. It is therefore impossible for you to lose it. Similarly, the blue card cannot be stolen.
- Limiting fees abroad:Some virtual cards also allow you to change your currencies in just a few clicks while enjoying preferential exchange rates. Also calledMulticurrency cards, they facilitate your payments while travelling while avoiding paying fees for each transaction.
Single-use virtual bank card: what does this really mean?
Virtual cards are part of the banking system's innovations to counter fraud and card identity theft. It is a means of payment which remains completely dematerialised, i.e. a service intended exclusively for purchase on the internet and in stores without physical contact.
The card is for single use since it is used for a single purchase. In other words, the contact information provided during the transaction will never be used again. If you intend to use a virtual card next time, you will have to resume the process from the generation of the card number to the registration of the bank data.
Which bank to get a free virtual card?
Not all banks offer the virtual credit card service and banks that do not offer a free card.Banks such as La Banque Postale, Société Générale, Crédit Mutuel, BNP Paribas, Hello Bank and others charge the card from 12€ per year (for standard Visa and Mastercard cards) and up to 52€ per year.However, online banks (Fortuneo, N26, Revolut...) stand out by their offers for virtual cards and the best offer is probably that of Fortuneo Bank which offers this service to its customers free of charge.For professionals, Qonto and Anytime offers are also interesting in terms of services and fees.