What is a virtual card?
September 23, 2024
In 2024, there have never been more options available for making purchases and managing your finances.
Prepaid virtual cards have emerged as a leading option, offering an easy and secure way to make payments, especially when shopping online. However, you might be wondering what they are, how they compare to other virtual cards, and how they work.
In this guide, we cover everything you need to know. We also explore a prepaid virtual card that comes with fantastic rewards (yep, that’s us!).
What is a virtual card?
A virtual card is a digital version of a debit, credit or prepaid card that is linked to a regular bank account or prepaid card account. They can be used for shopping, paying bills, or setting up subscriptions. Most people use them for online transactions and making contactless payments.
Just like a normal card, a virtual card comes with a unique 16-digit number, CVV, and expiry date. However, since it’s stored digitally, it’s only accessible by you, offering an extra layer of security.
What types of virtual cards are there?
There are three main types of virtual cards.
Single-use virtual cards are designed for one-off use for a single transaction. You determine the value of the card, pay for it, and then redeem this when buying something online. After this, they can’t be used again.
Reloadable virtual cards can be used as often as you like. Think of them like a digital version of a regular debit card, attached to either a bank account or a prepaid account. You can add funds to your account via transfer, salary payments, or cash.
A closer look at the benefits of a prepaid virtual card
A prepaid virtual card works just like a traditional virtual debit card, but you load funds up before spending them. This means you don’t need to pass a credit check to get one—in fact, you don’t need a credit history at all.
Once you’ve loaded the funds, prepaid virtual cards work just like debit cards and you can manage your money from any easy virtual card app. Here’s more about the benefits of prepaid cards:
- Budgeting. Since you can only spend the money you’ve preloaded onto the card, virtual prepaid cards are a great way to manage your expenses and limit accidental overspending.
- Joint accounts. Prepaid cards are an easy alternative for couples, parents, and carers as they can set up an account without becoming financially linked and impacting each other's credit scores.
- Exciting rewards. Depending on your provider, you can enjoy amazing rewards like income advances and cashback when you spend with partnered online retailers.
How to get a free virtual card
If you’re looking for a fast way to set up a virtual card online, look no further than Pockit. You can apply for a hassle-free prepaid card in as little as 3 minutes online and get access to your own account to manage your money.
Load up funds however you like, from transfers and salary payments to cash deposits at PayPoints across the UK. Once your funds are loaded you can use your virtual Mastercard to spend straight away.
Virtual card FAQs
Can I use a virtual card abroad?
Yes, virtual cards like pockit can be used internationally at any retailer or service provider that accepts Mastercard debit cards. It’s important to check for conversion fees.
How are virtual cards protected?
Solutions like Pockit’s virtual Mastercard® prepaid card come with advanced security features. Pockit follows safeguarding which means that your money is stored separately from other funds and you are protected in case anything happens to Pockit as a company. Learn more here.
