Virtual Credit Cards Safeguard Your Financial Information

If you're worried about entering your credit card number when shopping online, there's one safe option you probably don't know about: a virtual credit card.

The introduction of chip credit cards has made ours even more secure. But on the other hand: Since chip cards reduce the ability of thieves to clone credit cards, their focus is more on online hacking.

Here is a partial list of retailer websites that have been hacked since January 2018: Zynga, Canva, Orbitz, Best Buy, Delta Air Lines, Panera Bread and Under Armour, which affected 150 million users of the MyFitnessPal app .

A virtual credit card can boost your sense of security

There is a world of virtual credit cards out there that can add another layer of security to the safety of your funds. It's always been important to keep an eye out for identity theft and scams, but it's even more so now. Vigilance is required during the COVID-19 pandemic because scammers love crises. Burglars want to find you vulnerable and anxious, so you're more likely to take the bait.

A dummy credit card number won't protect you from all types of scams, but if there's a data breach at a company you do business with, hackers won't get hold of your real credit card number.

How virtual credit cards work？

A virtual credit card is not a physical card you hold in your hand. It's actually a randomly generated credit card number that changes every time you make a purchase with your real credit card account.

Virtual credit cards work a bit like chip credit cards. When using a chip credit card, the merchant is given a one-time number or token that changes each time the chip card is used.

If the fraudster gets the account number from the chip card and tries to clone it, it won't work because the unique code is only valid for that single purchase. With virtual credit cards, temporary account numbers are used, so again, hackers won't be able to make purchases using these virtual accounts. So, your financial information can be well protected.

Even if the merchant's website is hacked, your virtual credit card account is useless to fraudsters. So you can have complete peace of mind when it comes to using your credit card online.

Disadvantages of virtual credit cards

1. The virtual credit card cannot receive a refund

If you use a virtual credit card for consumption and want to refund the goods, it is difficult to return the refund to you, that is to say, the refund will not return the same way, and you may suffer great losses. Because most merchants will want to reimburse you with the same card number that you used to make a purchase.

2. A virtual credit card might make you let your guard down

Another possible downside of a virtual credit card is letting your guard down. A virtual credit card can help you improve your credit rating, but it's not guaranteed to be foolproof, so be sure to check your financial accounts online regularly. Remember, these are unusual and anxious times, so don't get lulled into a false sense of security by using a dummy credit card number.

3. Virtual credit cards are not applicable to offline purchases

One more thing to consider: If you put an item on hold and pay for it in a store, it's hard to use a virtual credit card. Remember, virtual numbers are designed to protect your online financial data, not for in-store purchases.

Virtual credit card issuer

Fincon specializes in providing financial services to startups, including opening bank accounts, obtaining business credit cards and making cross-border payments, helping startups solve the financial distress they face. It is safer, more convenient and more professional than the existing traditional banking process. If you need a virtual credit card too, please call us at +86-16266316316 or email us at evan.fan@fincone.com and we will be happy to help you.