Virtual cards—what are they and how do they work? (2024)

FAQs

What is a virtual card and how does it work? ›

A “virtual card” is stored on your phone and can be used to pay contactless in stores or online, but has its own unique card number, expiry date, and CVC. A “digital card” is a copy of your physical bank card that's stored on your phone.

Once you create a Step account, you'll receive your Virtual Step Card instantly. Your Virtual Step Card is a digital-only card with its own unique card number and details. You can use it online or add it to your mobile wallet to use in-store.

Unfortunately, if you don't have a physical card, you cannot get money off a virtual card through an ATM. However, you can link a virtual card to your physical credit or debit card or mobile wallet. This action makes it possible to withdraw cash at ATMs.

Virtual credit cards offer an extra level of security against criminals attempting to steal information via insecure connections or data breaches. If the account holder needs to cancel their card for any reason, a virtual credit card can make the process much easier.

Control. For added control over your online shopping experience, you can lock or unlock your virtual cards at any time without affecting your ability to make other purchases with your actual card number. Some virtual cards may even allow you to set a custom expiration date or spending limits.

Withdrawing cash from a cardless ATM can generally be done in these few easy steps: Sign in to your bank's app and choose the account you want to withdraw from. Tap your phone to the reader—or scan the QR code on the ATM. Verify the transaction for the ATM withdrawal.

You can link your virtual card to PayPal or any e-wallet you prefer and then transfer it to your bank account or other e-wallet accounts. Later on, just pay a visit to the bank to get your money.

Can you take money out of an ATM with a virtual credit card? ›

The biggest drawback of using virtual cards is that they're only suitable for purchases made online. You can't use them at an ATM to withdraw cash as you could with a normal debit card, either.

You can use a virtual card in stores that accept digital wallets like Apple Pay, Google Pay and Samsung Pay if you have added the virtual card number to the wallet.

Virtual credit cards are completely legal and available for mainstream use. In addition to virtual credit card numbers issued by the major card companies, there are also VCC generators. This option is legal to be used for card verification purposes that do not involve financial transactions, such as free trials.

As a best practice, we recommend using one virtual card per vendor. Security: If the vendor's website security is compromised, your card information with other vendors stays safe. You may simply lock the card for the specific vendor and not have any additional recurring spend blocked.

To pay in a store with an Android device: Before checkout, add your virtual card to Google Pay. Also, turn on NFC in settings. At checkout, look for the Google Pay symbol.

Better Control of Spending

Virtual credit cards can help you keep tabs on spending. That's because some of these cards enable you to set spending limits. For example, if you give your teen your credit card number to make a purchase online, a virtual card might prevent them from going overboard.

You can use a virtual card just like you use your actual credit card—just shop online, start the checkout process and use a virtual card to complete your purchase. Charges will show up in your monthly account statements just like they usually do for purchases made using your actual credit card.

Some virtual card providers charge fees for every card you create or a monthly fee to use their service. Other virtual card providers may also charge fees for each purchase made with the cards. In contrast, Privacy's Personal plan is completely free to use on all domestic* purchases.