Virtual credit cards are randomly generated digitized 16-digit numbers used in place of a physical credit card. Thanks to tokenization and spend controls, virtual credit cards are one of the most secure payment options for business buyers. A study by Juniper Research forecasts that the number of virtual card transactions will exceed 121 billion globally by 2027; increasing from 28 billion in 2022. This represents growth of 340%.
What are the benefits of a virtual credit card?
There are many benefits to using virtual credit cards. These include:
- Security: The card number is replaced with a unique code that can be used only once, making it difficult for fraudsters to use them again and again. It also adds an extra layer of protection by using tokenization technology.
- Convenience: Virtual cards make it easy for you to manage your expenses without having to carry around all kinds of cards or worrying about losing your physical cards while traveling. They’re also easy to use on websites where they may require more than one form of verification before you can proceed with checkout.
How do virtual credit cards work?
A virtual credit card number is a unique identifier that can be used to make purchases generated by using tokenization. This technology replaces sensitive data with unique identification symbols that retain all the essential information about the data without compromising its security. Tokenization minimizes the amount of sensitive data a business needs to keep on hand, and has become a popular way for small and midsize businesses to bolster the security of credit card purchase and acceptance.
Each virtual credit card number is a unique token. It can be used to make a purchase, but the original credit card number it is linked to is completely concealed.
Virtual credit cards are becoming increasingly popular in the United States, with many companies offering them to make it easier for customers to make purchases online.
Do you have more questions about virtual credit cards and how your business can benefit from accepting them? Reach out to your eTreem expert today for assistance!