Online virtual debit cards, explained

Many consumers are exploring ways to leave their debit card at home by using an online virtual debit card for both online and brick-and-mortar purchases.

A virtual debit card is a type of payment method that works just like a traditional debit card. The difference? A virtual debit card only exists in a digital format. Here's what you need to know.

How do virtual debit cards work?

A virtual debit card operates very similarly to a traditional debit card and can be used anywhere that accepts debit. That means it includes the same 16-digit debit card number, expiration date, and CVV number, making it easy to use for online purchases.

While you won’t have a physical card, it is still possible to pay in-person with a virtual debit card. You can add the online virtual debit card details to the digital wallet on your smartphone, giving you the option to pay with a tap or QR code at any retailer that offers those payment options.

The difference between virtual cards and digital cards

Consumers may confuse virtual and digital cards and sometimes use the terms interchangeably, even though they’re different. Here's what you should know:

• Virtual cards are issued digitally and only exist in electronic form. No physical version of the card will be available to use.
• Digital cards are the digital version of a physical card and are issued as part of the physical card process. You can keep the physical card in your wallet and the digital card in your digital wallet. Both use the same linked account.

How to get an online virtual debit card

Getting an online virtual debit card is similar to the process one takes when applying for a traditional card. Here are the two popular ways to apply.

Through your bank

Many banks offer virtual debit cards to their customers through their website or mobile app. Once you have your virtual debit card, you can make payments using the bank's mobile app or add the card to your smartphone's digital wallet.

Banks with virtual debit cards will tie the card to your existing account, saving you the time and hassle of creating a new virtual debit card bank account.

Through online providers

If your bank doesn't offer virtual debit cards, online providers can provide you with a virtual debit card for your online wallet. Many online providers offer rewards or promotions as a way to attract customers, so make sure you research the different options to find the one that meets your needs.

Keep in mind that because it's an instant virtual debit card, you'll still have to either fund the online account or connect it to your existing bank account before making your first purchase.

Benefits of virtual debit cards

Virtual debit cards are a great option for people who don't want to carry a physical card or want to make it easy to shop online and with their smartphone. Here are the benefits you can take advantage of with virtual debit cards:

• Convenience. Cards can be generated and activated instantly, so you can start spending from a linked account without having to wait for a card to arrive in the mail.
• Lower fees. Because they are easier to administer by banks and online providers, virtual debit cards can sometimes carry lower fees than those of a traditional card.
• Security. Virtual debit cards can't get physically lost or duplicated like physical cards. The card in your digital wallet is protected by your phone password and, in some cases, your app login, which may help keep it safe if your phone gets stolen.
• Control. Some virtual debit cards let you set spending limits, helping you keep up with your budgeting and personal finances. Learn more about why it’s important to add your expenses into your personal budget.

Whether you're an avid online shopper or simply someone who wants to leave their wallet at home, virtual debit cards give shoppers a seamless, convenient, and secure way to shop.

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