What is virtual credit card? Working system, advantages and disadvantages.
Virtual credit card means it is not a physical card. You will only get the card number, expiration date and security code. In the field you will get the card holder name and billing address. Although the card issued to you is virtual, it must be issued under a bank that the bank has a physical existence. Which can happen in any country of the world. However, there are banks in the US and UK that offer such services to customers.
With this card you can do any verification besides online payment such as PayPal card verification. However, you can only make payments but you cannot receive payments from anywhere. Even if you do not have the billing address and cardholder’s name, you can make any payment with any name with this card at any billing address.
There are basically two types of virtual credit cards. Reloadable and non-reloadable.
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What is a Reloadable Virtual Card?
This means you can reload dollars on this card as per your requirement. However, you don’t have to go to any bank like a card taken from a normal bank. Since the cards are issued virtually, there is a virtual system for reloading dollars. For example: cryptocurrency. If you send dollars to their address, the dollar will be added to the balance of the card in some time. However, due to the high transaction fees of cryptocurrency, it becomes very expensive.
What is a non-reloadable virtual card?
These cards carry a certain amount of dollars in advance. For example: 5,10,20,50,100 or any such account. If you spend this certain amount of dollars then it will be of no use. These cards and dollars are usable during the validity of the card.
Where can I pay with a virtual credit card?
Virtual credit cards are usually issued by the VISA Authority, so you can easily make payments at any company or site or gateway that accepts the VISA card. For example: Google, Amazon, Fiverr and most popular web hosting domain service provider. You can also verify PayPal card with this card without any problem.
What are the benefits of virtual card?
The biggest advantage of virtual cards is that you do not need any documents to use this card. For example, if you want to get a card from a bank, you need to give passport, NID or other such documents. But using a virtual credit card doesn’t have to be this way. Another advantage of this card is that it can be paid on most websites. The dollar price is often lower than the regular bank dollar.
What are the disadvantages of virtual credit cards?
As well as the advantages, there are many disadvantages to having a virtual credit card. First of all these cards will not be issued in your name then it is not possible to get refund after making payment on any site. Because no dollar is entered in this card from gateway or company. Reloadable but not possible. I have already said that dollars have to be inserted in the reloadable cards through a specific system. Moreover, many times the gateway can decline the payment. However, the probability is 1%.
