Financial transactions in today’s world have become more diverse and easier than ever before. As a result, the importance of virtual and physical (usually plastic) cards is increasing. These two transaction methods differ in various advantages including security. Both payment methods have become very important to people as each person has different needs. In our today’s article we will discuss in detail some common differences between virtual cards and physical cards and which one is more convenient to use.
What is a Virtual Card?
The name of the virtual card itself gives a small idea about this card. A virtual card is a digital payment card that has no physical form. It exists only in an electronic format and can be used for online and app based transactions.
Virtual cards are usually linked to a physical card or bank account, but are always represented digitally with a virtual card number. Virtual cards are issued with separate card details while issuing. These virtual cards contain card number, expiry date and security code.
Advantages of Virtual Cards
There are several advantages of using virtual cards. Some of these advantages are –
Safety and Security
Since virtual cards are not physically present, they are unlikely to be stolen or lost. Data on a virtual card is usually carried for a limited purpose, thereby helping to keep the original bank account and credit card numbers private. While virtual cards are not 100% secure, the threat of a data breach is limited to a specific card. A user can easily cancel a virtual card and thus face no hurdles in scheduled payments.
Convenience and Ease of Use
Virtual cards are convenient for online shopping and other digital transactions. Virtual cards can be created and managed quickly through online banking websites and apps. They can also be kept in a digital wallet on your mobile device. Virtual Card combines with a smart cost management platform to help increase efficiency through accounting automation. The real-time visualization provided by virtual cards enables companies to make the best decisions at any given moment.
Accessibility and Control
The virtual card is accessible 24 hours a day through the online platform. It is a suitable medium for any international transaction. Moreover, it can be easily replaced if any kind of problem occurs.
Disadvantages of Virtual Cards
Virtual cards have advantages as well as disadvantages. Some of the major disadvantages of virtual cards are-
Limited Acceptance
Not all merchants and websites accept virtual cards like physical cards. As a result, their usability decreases in some cases. This is why it is so important to check the acceptance policies of any company you wish to deal with.
Zero Physical Presence
Some users may still need a physical card for personal transactions or as a backup option. Virtual cards lack the physical quality of traditional cards, which can be off-putting to some people.
What is a Physical Card?
Physical cards are the traditional payment cards that are used the most. They are usually made of plastic, metal or other durable materials. Physical cards are commonly used for transactions at point of sale terminals and ATMs.
Benefits of Physical Card
Physical cards have several benefits for your business or personal use. Some of the notable benefits are –
Wide Acceptance
Physical cards are accepted in most places such as in-store or online. Physical cards are an excellent means of paying for in-store shopping, travel and many other transactions.
Sensitivity
Physical cards help increase trust among people as they enable the payment method to be seen and felt.
It has been around for a long time
Many people are used to using only physical cards. Because the use of this conventional card has been going on for many years. This is why physical cards are at the top of the list of preferences for almost all types of businesses.
Some Disadvantages of Physical Cards
Physical cards have some advantages as well as some disadvantages. Some of the disadvantages of physical cards are –
Security Risk
We all know that physical cards are prone to getting lost or stolen. So there is a small security risk in using physical cards. Unauthorized transactions may occur if you do not report them immediately. While chip cards and contactless technologies have gradually improved the security of physical cards, they have not completely eliminated the risk.
Extra Work
Physical cards require proper storage, and the more cards you have, the more difficult it can be. It may also need to be replaced over time.
Slow Process
Getting a physical card can be a fairly lengthy process. This can result in valuable time being wasted as well as blocking opportunities.
Which is Better: Virtual or Physical Card?
The answer to this question actually varies from application to application. It is possible to determine which one is better based on the type of use you intend to take the card for. But the things you can watch out for are –
Business needs: When and how do you want to use your card? Do you need a card for online shopping or travel?
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Convenience vs. Security: There is a distinct trade-off between the security of a virtual card and the convenience of a physical card. Which one do you need?
Merchant Acceptance: Knowing what type of card is accepted in the areas where you spend the most will help you understand which card is right for you.
Both physical cards and virtual cards are very popular payment methods these days. But we hope you can easily understand which one is required in your case by reading our article. Let us know what you think of our today’s article about physical cards and virtual cards through our comments.