Virtual Cards – What are They and How do They Work?

Online shopping has grown into a necessity since the start of the pandemic. So has paying the best banking fees and switching to a bank that suits your needs. But, with switching banks comes a new dilemma, getting your new cards. 

It is time consuming enough that you have to go through the know-your-customer (KYC) due diligence process, and then you still have to wait for your debit and/or credit card to arrive. There is a solution! 

Since the collaboration with Wallester, PayPugs has been able to offer virtual cards. That means that while you wait for your new cards to arrive, you will still be able to make online purchases. 

Our Virtual Cards are available to individuals and businesses. Our users can issue an unlimited amount of cards, cancel, and even freeze them whenever needed.

We want our clients to live a convenient life by helping them get rid of the dependence on cash or having to wait for their physical cards to arrive. 

Here’s everything you need to know about our virtual cards and how they can benefit you. 

What is a virtual card?

A virtual card is ideal for people who mostly do online purchases, both locally and internationally and allows for stress free online shopping. With a virtual card, you can make online purchases or payments on your favourite apps without ever having to take your card from your wallet or exposing your actual account information.

Virtual cards aren’t a digital version of your physical card. A unique number, also known as a token, is generated for every transaction, meaning that your physical card’s information will stay unknown. 

You can issue a virtual card, whenever you want, with your desired amount, for a limited time. You are also in control of the daily, weekly, and monthly spend limits of the virtual card. 

The PayPugs virtual cards are not linked to the main account, which keeps your money and information safe and secure.  

How does it work?

Making use of virtual cards with PayPugs is easy and quick. You can create a virtual card on your PayPugs app, load money onto it, set limits and when the card will expire. 

A virtual card lets you pay online without you ever having to give your credit or debit card details to the merchant. It works on almost any platform as it basically replaces your physical card. 

Another advantage of a virtual card is that you can issue an unlimited amount of virtual cards. This allows you to make use of multiple cards for multiple platforms, without having to worry if your personal information will get stolen. 

The benefits of a virtual card

Virtual cards are ideal to control spending, enabling users to select a date to close their cards or even disable the card automatically after a few payments. An added bonus is that a virtual card only holds the amount of money that you paid into the linked account. This means that there is no spending over and above your available funds. 

Virtual cards can be used by businesses. The business issues them to an employee so that secure, trackable and controlled company-related payments can be made. But, they are also perfect for parents to teach their children financial literacy. Virtual cards help teach children how to manage their money, without running the risk of an overdraft on the parent’s account.

Virtual cards can also be easily frozen to ensure the safety of your personal information. If you are unsure of a site, but want to make a purchase, you can use a virtual card and immediately freeze it after the payment has been processed. This eliminates the possibility of your card information being stolen or cloned. 

Virtual cards are a safe way of making payments and with PayPugs there are many benefits, like fraud monitoring. Open an account with PayPugs, and see why choosing to make use of our virtual cards is convenient and safeguards your personal information and money. Or, book a call with us to get answers to all of your questions.  

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