Virtual Cards: The Next Big Thing in Business
If you’re like us, you worry about fraud. The thought of someone stealing your credit or debit card and running up a tab is scary. It violates your privacy on top of being robbed.
From 2020 to 2021, the FTC reported credit card theft as the most common instance of identity fraud. In 2020, the FTC handled 2.2 million fraud reports. They had almost 18,000 reports from people who said that their information will gain illegal access to their credit card accounts.
That’s why virtual cards are the next big thing for both online and store purchases. They offer an added layer of protection that you can’t get from your physical card.
What is a virtual card? It’s a card that is stored on your phone. They can pay contactless.
Benefits of Virtual Cards
There are many benefits of virtual cards, which is why I love them. You can leave your wallet behind at home, adding convenience to your lifestyle. Also, you can lock and unlock virtual cards instantly on your phone.
Virtual cards are simple to use and secure. I can activate instantly them since you don’t have to wait for a physical card to be snail-mailed to you.
If you have a physical card from your current credit card issuer, ask if they offer a virtual card. Most issuers of major credit cards offer a virtual card. Bento offers two great virtual cards now.
How Does a Virtual Card Work?
Virtual cards work the same way a physical card does. The only difference is how they live, which is in your digital wallet and not in a small plastic card.
They are safe because encryption secures them. For each transaction you make, virtual cards generate a unique card number. This protects your real account number.
With a one-time use, that way, if you did business with a company that fell victim to a data breach, your actual account is not compromised because the number they retrieved is no longer valid.
Is Cash a Thing of the Past?
Paying with cash today is like purchasing using an antique. In the U.S., people who prefer to pay with cash fell to only 18% in the year 2020. In 2016, 27% preferred to pay with cash. That’s a 9% drop in just four years.
Plus, if you steal cash, it’s gone and extremely difficult to recoup. There’s no insurance for cash.
People are turning to a virtual debit card and a virtual credit card over cash in today’s digital world. If you’re not digital, then you risk becoming obsolete.
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