Virtual credit cards are randomly generated sets of numbers that you can use in place of your real credit card information online. The numbers are tied to your real credit card and charges still come to your same account. When you make online purchases with a virtual credit card, though, the seller can only see the generated information, thus protecting your credit card information.
So what are the benefits of using virtual credit cards and when should you consider getting one?
1. If you like to shop online… a lot
If you love shopping online for your business it’s smart to consider using virtual credit cards. A virtual card protects your information online. Even if you are spending on well-known, secure sites, data breaches still happen. And with a virtual card, you limit your exposure to individual merchants.
2. If you’re buying from a one-time merchant
There’s a number of situations where you might not want to use a card tied to a permanent account: buying from a new business, setting up an online trial, or paying an invoice for a new business vendor your vetting, for example. Even if you love buying from new and upcoming businesses online, a virtual credit card is essential because it protects your information in the instance of not only a data breach, but also if a dishonest merchant were to steal your card information. Because you can set your card up to automatically close, the merchant will not be able to use the stolen information.
3. If you have lots of subscriptions
Online subscriptions can be difficult to manage. It’s hard to keep an eye on them, and to keep abreast of what they’re charging you. And they can be a big security risk if one of the businesses suffers a data breach. Virtual cards can help solve all of those problems.
You can manage all your online subscriptions using virtual cards. Just use a virtual card for each of your subscriptions, and keep it to one card per vendor. That way, you can track all your subscriptions in one place, you’re protected if the card information is compromised, and you can easily see if you’re being overcharged. Plus, with the additional controls that many virtual cards offer, like spending limits, card freezes, deleting cards, etc., you are in control anytime something with the subscription needs to change. And, if a certain vendor is trying to corner you, or make it difficult to cancel their service, you simply delete the card. No more painful cancellation calls.
4. If you need to freeze your card
Most virtual credit cards allows you to freeze your card at any time. This means if you fear your data has been compromised or you want to make sure you are not being double charged, you can simply freeze the card. By having the power to freeze your card and keep your funds safe, you take your finances back into your own hands.
5. If you like control over your money
While not all virtual credit cards are created equal, many virtual cards give you more controls than you are used to on your regular credit cards. In addition to being able to freeze your card whenever you need to, you can set up a spend limits, a date for the card to close, or have it automatically close after the first charge. Most give you the option to keep a virtual card open or closed for however long it suits your business.This allows you to protect your information from hackers and dishonest sellers. It can even help streamline your processes and keep your real card information private even from employees if needs be.
Divvy allows you to do all of these things on our platform with burner and subscription cards built in, plus on Divvy when you create a virtual card you select the budget and category, so that whenever a charge comes in, your expense report is already done. Virtual cards are easy to create and manage in the Divvy platform on your computer or your phone. And the best part is, we do it all for free.
Schedule a demo and learn more about how virtual cards, and Divvy, can help your business.