Everything You Need to Know About Virtual Credit Cards

Mobile Lending & Payments

As technology continues to advance, new transaction opportunities for buyers and lenders are becoming available – including virtual credit cards! While physical credit cards can be easily misplaced – whether falling between the seats of your car or your house – virtual credit cards are a more secure option and offer numerous benefits. 

Virtual credit cards, and now digital wallets, are  more accessible than ever! Learn everything you need to know about virtual credit cards and how they can protect you from theft ( and accidentally losing your card!), as well as provide the most convenient solution for online payments possible. 

What Is a Virtual Credit Card?

Virtual credit cards are a relatively new type of service. They enable online shoppers to transact on their main credit card account while masking their credit card’s sensitive information to reduce the risk of fraud. By using uniquely generated card information as a proxy, shoppers can keep their real credit card number, expiration date, and security code safe. Virtual credit cards can be limited for use at a single merchant, or users can also set a particular spending limit or expiration date. 

Since the virtual credit card number you enter is never permanently stored, they make it extremely difficult for hackers to steal your real credit card account. You may even be able to lock or delete certain virtual account numbers and then create an entirely new virtual credit card number to continue making purchases. 

All of this helps prevent fraudulent purchases from occurring by deterring hackers. In a world where data breaches are becoming increasingly common, virtual credit card payments are one way that you can shop online safer.

Virtual Credit Cards vs. Digital Wallets

A similar advancement in mobile lending technology, digital wallets (or e-wallets) are a software-based service that securely stores a shopper’s payment information, including various payment method passwords for websites, shipping addresses, credit or debit card numbers, and other sensitive information, in a single place to use to complete transactions. 

By using a digital wallet, shoppers can complete purchases easily and quickly with stronger passwords that they won’t have to worry about forgetting later!

Like virtual credit cards, digital wallets remove the need to carry a physical wallet – or physical credit cards – by storing all the consumer’s information virtually. Not only is this an easy way to prevent physical wallets from being stolen or lost, but it is also a safer method to keep sensitive data from potential hackers. 

Digital wallets work in conjunction with virtual credit cards and other mobile payments, so shoppers can make purchases from the convenience of their smartphones. While digital wallets can hold a repertoire of other sensitive information, virtual credit cards can generally only be used for online shopping. However, they can be part of a virtual wallet and, when combined with mobile payment apps, can take mobile transactions to a new level of convenience. 

Some well-known examples of digital wallets are Google Pay and Apple Pay, which are also mobile wallets so they are accessible through an app on a mobile device, such as a smartphone or a wearable device.

These are not virtual credit cards, though they work under a similar premise. While many mobile payment apps are used predominantly at brick-and-mortar retailers, many online shops are starting to accept digital wallets as forms of pay. Virtual credit cards, however, are generally exclusive to online transactions.  

How Safe Are Digital Wallets?

While both virtual credit cards and digital wallets are not entirely free from fraud, both are generally safer than physical cards and traditional wallets. 

Digital Wallets

Most digital wallets will have extensive security requirements to be able to access them. Thanks to biometrics, mobile devices generally have passcode, fingerprint, or face scan requirements before you can complete a payment. These extra steps ensure a more secure payment experience than traditional methods of cash or credit card. 

Additionally, your information rests in the cloud and not in a physical item on your person. So, even if you have a mobile wallet, a lost or stolen smartphone won’t compromise your sensitive data. All your financial information is encrypted, rendering it useless and captured by hackers.

Tokenization also protects your credit card information. When you make a payment through a digital wallet, your credit card number never appears in a merchant's database. Instead, it is encrypted into a “token,” or a generated code that the merchant receives. This makes for a much more secure payment processing experience. avoid-the-chances-of-credit-card-fraud-with-virtual-credit-cards

Virtual Credit Cards

The chances of fraud are decreased with virtual credit cards because your vital sensitive information isn’t as available as it would be if you were using a traditional credit card. Depending on the credit card, you may have the choice to either have a separate virtual credit card for each merchant, or a standard card for all merchants. Generally, you can request a new number whenever you want – making it more difficult for fraudsters to access your account. 

Remember, though, that virtual credit cards are not completely fraud resistant, so it’s important to continually monitor your account for any suspicious activity. 

Where to Apply for a Virtual Credit Card Number

There are plenty of options out there for virtual credit card payment processing, but the process of applying for a virtual credit card may differ slightly depending on your credit card issuer. 

Generally, virtual credit card numbers are attached to existing credit card accounts, so having a credit card is a must. Many major credit card issuers offer virtual cards, including Visa,  Mastercard, and American Express. Other issuers, such as Chase, have a mobile app separate from their online banking app entirely. If your bank doesn’t offer virtual credit cards, there are other options available. Many providers are willing to work with your existing account. 

Introducing Transcend Pay's Virtual Credit Card App

Applying for a virtual credit card? Or, trying to drop traditional wallets and go digital? Transcend Pay offers the Klever mobile processing app so you can have the most secure, convenient experience  - at your fingertips! 

The mobile processing app uses a virtual credit card that allows you to instantly transfer funds and accept payments, regardless of your industry. The whole process is digitized, allowing it to be performed remotely  and through your mobile device at your convenience 

No credit card account is required to use the app. After funds are disbursed to the virtual credit card, borrowers immediately start using the app to manage and repay their loans instantly.

Plus, there are no extra fees or extra charges for you! While the app delivers funds and processes payments through the Visa and Mastercard networks, all users will work directly with you. 

Here are some of the exciting features of the Klever app!

Biometric Security Requirements

You receive all the extra security benefits awarded to virtual credit cards with the Klever app! With Know Your Customer (KYC) and ID security requirements, you can rest assured that any sensitive information is protected.  All users must create an account that is in compliance with KYC procedures for utmost security. 

Instant Fund Disbursement

By using the mobile processing app, funds are typically available within minutes instead of the processing delays associated with traditional fund disbursements. So now you can achieve a more efficient, more customer-friendly fund distribution service - at the convenience of your smartphone!

AI Underwriting

Machine learning algorithms can check for errors present in information more thoroughly and efficiently than the human eye, delivering an essentially error-free system with improved accuracy and input so you can have the most secure and efficient processing system available.  

Convenience

The Klever app allows you to make online payments through the convenience of your smartphone!  With just a few quick taps, you can make transactions, disburse loans, and collect payments from anywhere, at any time. 

Push Notifications

You receive complete transparency with the Klever app! With push notifications, you receive notifications about your latest transactions, activities, and actions so you can build lasting relationships with your customers.

Ready to forgo traditional payment methods and start maximizing efficiency and drive more revenue? Try the Klever app for yourself and schedule a demo today!  Or if you have any questions about the app, don’t hesitate to contact us

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Experience the Latest in Mobile Payment Processing with the Klever App!

The future is here with Klever, Transcend Pay’s revolutionary mobile lending app! Instantly transfer funds and accept payments from anywhere, anytime, from the convenience of your mobile device. Get Klever today with a free demo!