The vast majority of payments today are made using credit and debit cards with easy access and wide acceptance. According to the Federal Reserve Bank of San Francisco, about 51 percent of all retail transactions are done using credit or debit cards, while only 26 percent are cash
However, what comes with the growing usage of cards is the rise in credit card fraud. Statistics revealed by Security.org
shows that 65 percent of people with credit or debit cards have experienced credit card fraud at least once. This is an estimated 151 million U.S. adults, and also marks a considerable increase from the findings of last year, which found 58 percent of cardholders had been victims of fraud.
As credit cards are becoming the mainstream way to make payments, businesses and consumers are looking for ways to transact more securely in light of the growing threat of ID theft and payment card fraud. Using virtual credit cards is an emerging approach for holders to spend more securely and privately.
What is a virtual card?
As the name suggests, a virtual card is a digital credit card, meaning it does not physically exist as a piece of plastic with a number and a magnetic stripe. Instead, you simply get a credit card number, a validation code and a validity date, which can be instantly made through a website or mobile app.
Virtual cards can be utilized for most online purchases to mask your personal and financial information. Oftentimes, you can set a maximum spend or charge limit on the virtual card to prevent yourself from being overcharged or being stolen. Some virtual cards will also support being locked to a specific merchant to prevent the card from being used elsewhere if the merchant is breached.
Besides the convenience of going out without bringing your wallet, virtual credit cards are also a secure payment method. Your data is always safe and even in the unlikely event that your card details are compromised, you can deactivate the card immediately without shutting down the credit card account.
How do virtual cards work?
Virtual cards function just like credit or debit cards but without a physical card, and can be used for online shopping, over the phone purchases, or any transaction that requires entering a card number.
Many users may think of virtual cards as burner cards that can be used for quick, one-time purchases. However, iPeakoin virtual cards offer more enhanced security features and unlock more use cases than a simple burner card.
With iPeakoin Cards, cardholders can set maximum spend limits on virtual cards to prevent being overcharged. Additionally, you can manage your cards for opening or freezing online anytime and anywhere within just a few clicks.
What are the benefits of virtual cards?
Virtual credit cards have one considerable benefit: They are very safe to use. Cardholders won't lose them like plastic cards, and are allowed to create or deactivate them as you wish, no longer worrying that sensitive information has been exposed. This helps prevent fraudulent purchases without affecting the main credit card account. Another great feature is to set a spending allowance or limiting them to a certain use case.
Therefore, virtual cards can bring the following benefits:
Convenient to use
Save money with customized budget or limit
Created or deactivated within seconds
Highly secure with real-time tracking and managing
Set different cards for different usages
What kind of safety measures does a virtual card provider take?
Safety and security are are the factors that card users concern most, and are very important to virtual card providers. For iPeakoin specifically, we undergo rigorous internal and third-party audits. We uphold the licenses of MSO, MSB and comply with the highest standards of PCI-DSS (Payment Card Industry Data Security Standard) level 1 requirements as a bank or credit union. Besides, we have applied SA 3072 for encrypting all types of information to ensure card security.
iPeakoin is a licensed FinTech platform that drives the innovation of crypto payments. It has now expanded its business to over 180 countries/regions, serving more than 10,000 companies in 2022. Aiming to build a unified financial infrastructure of both fiat and cryptocurrency, iPeakoin creates a scalable Card-as-a-Service to bring crypto further into mainstream financial services and helps crypto businesses build stronger connections with end users. In addition to its headquarters in the US, iPeakoin has offices in Hong Kong, Luxembourg, and Singapore, as well as partnerships with top-tier banks & financial institutions worldwide.