In the present era of science and technology, digitization is becoming more influential and trendy. The credit card industry is no different. The card issuing companies are now issuing more and more digital credit cards for secure and convenient online transactions. It is one of the greatest transitions in the history of credit cards over the years.
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Digital credit cards?
Digital or virtual or cloud cards are just an addition to the plastic credit card intended for online purchases/transactions. They come with a short life cycle ranging from a single transaction to 1/2 day. They are the extended version of existing cards with virtual cards designed for online transactions and more layers of security than physical cards.
What about the limits of your digital credit card?
Your issuer may allow more limits on your virtual cards or transfer some from your existing ones. The limit depends on the parts of your card issuer mainly. The limit assigned to such cards automatically transferred to the main cards after the expiry of virtual cards.
Features of Digital credit cards:
- It is safer than physical cards
- It is instantly usable after approval
- It is only for online transactions
- It is easy and less time-consuming to avail
- It comes with regular offers and perks
- No interaction physically requires
What can you do with a virtual credit card?
You can do the following transactions with your virtual credit:
1. Travel-related bookings and car rentals: Your virtual credit card may perform all the payments regarding your travel. Be it booking hotels or air tickets, you are fine to go.
2. Online shopping on most of the sites: Online shopping has never been so exciting, secure, and fast before. Your digital cards will give you an extremely good experience.
3. Payments to Apple, Google: Payments to ApplePay, GooglePay, SamsungPay are not a problem anymore. Your virtual credit cards are here to help you.
4. Utility bill payments: You can now pay all your utility bills online with this virtual card.
5. Tickets for movies or theatre: Tickets for movies or theatre are not a problem now. Use virtual cards to reserve the lovely show you deserve.
6. Subscription for Netflix and other platforms: The entertainment industry has been globalized and subscription-based platforms are on the go. Now, you can enjoy all the shows on your favorite platforms making payments from your digital cards.
Freelancing Facilities: Freelancers are highly benefitted with digital cards. They can purchase domains, hosting, web services, plugins, content, and many other services from abroad with the cards.
How do digital credit cards work
What are the benefits of digital cards?
Security: transactions with virtual cards are more secure than plastic cards. One Time Password OTP for each transaction comes to your phone and email. So, it is comparatively safer. In addition, digital cards do not have a fear of physical theft. Therefore, less chance of physical theft ensures better.
Less fraud: Since virtual cards are for a very short period, it is very tough to copy anything from your cards quickly. Fraudsters are unwilling to duplicate the card as it may already expire before anything is discovered.
Instant: You can easily use it instantly. You need not wait for any other activation or something like that. So immediately, you are set to go just after you are approved.
No annual fee: Digital credit card is usually free of charges/yearly fees
Balance sets back: Balance of the limits on your virtual credit cards goes back to your physical credit card after the expiry of your cards.
Offers and Perks: Virtual credit cards usually enjoy the exact offers and perks on spendings and shoppings.
Easy to get: Digital credit cards are easy and quickly approved.
Borderless use: Virtual cards are usable anywhere, anytime, without physical constraints.
Seamless user experience: Virtual cards need not be with you physically. You can enjoy the seamless experience digitally just with some digits with you regarding the card.
Multiple currencies: Virtual cards may be used for multiple currencies with easy and instant conversion or with separate cards for each currency.
Eco-friendly: Your digital cards will harm the environment hardly as it is in digital form with no plastic.
What are the disadvantages of virtual credit cards?
Virtual cards or not completely advantageous only; there are some drawbacks too:
Not for physical stores: Digital credit cards are for online transactions. Offline transactions are not possible with your virtual cards. You will need physical cards for transactions in physical stores.
No cash withdrawal: Cash withdrawal from your digital cards is impossible because it is only for online transactions.
The world is moving towards virtualization very fast. Your credit cards are simply following the trend by being digital in form and comprehensive insecurity. Let your new normal digital credit cards try to fill the chill of fast and secure online transactions.
Freelancers may enjoy the virtual cards from Payoneer for versatile benefits.