Unlike physical credit cards, virtual cards generate unique account numbers for each transaction. This means your actual card number remains protected throughout various online interactions. With virtual cards, you can assign different numbers for each online store or subscription service. Additionally, you can set spending limits, specify expiration dates, and lock or delete virtual cards as needed without impacting your primary payment account.
It’s important to note that virtual cards differ from digital wallet payments like Apple Pay or Google Pay, which use your real card numbers for transactions.
The Biggest Perks of Using a Virtual Card:
Using virtual cards for your subscriptions simplifies the process of cancelling them or allowing accounts to lapse, potentially saving you money. For instance, if you sign up for a free trial with a one-time virtual card, or a card you can deactivate, you don’t have to worry about cancelling before the trial period ends—the transaction simply won’t go through.
Deactivating your virtual card is an effective way to stop ongoing subscriptions, as the service provider won’t be able to continue charging you (though it’s still best to complete the official cancellation process with the subscription service).
Moreover, if you wish to maintain a subscription, virtual cards offer continuity. A multi-use virtual card number will remain valid even if the physical card linked to the account is replaced due to theft, loss, or expiration—ensuring you won’t miss any of your favorite services or deliveries.
Security Benefits:
Another significant advantage of virtual cards is the added security. If your data is compromised in a hack or leak, your real card number remains secure. Plus, if your virtual card is for one-time use only, it prevents further unauthorized purchases on your account.
How to Obtain a Virtual Credit Card:
Many credit card issuers now provide options to enroll for a virtual card using your existing physical card. Typically, you might need to add the card to a digital wallet and use a browser extension or app to generate a one-time card number or receive a unique code for checkout. Major issuers like American Express, Capital One, Citi, Mastercard, and Visa all support virtual cards.