Virtual Debit card is popular for shopping online and making digital payments. You can link it to an e-payment app as it’s safe and convenient.
In this article, we’ll explain what Virtual Debit Card is and how it works. Also, how you can use it Internationally, its benefits and more.
What’s a Virtual Debit Card?
A regular debit card but available digitally via wearable devices. You can use it to shop online or make digital payments. A Virtual Debit Card is issued by your bank whereby it gets linked to your bank account for easy and fast transactions.
How Does a Virtual Debit Card Work?
It functions as a digital version of a traditional debit card, linked to a bank account but with a unique digital number. You can access and manage it through online banking or a mobile banking app.
To make a purchase, individuals use the unique details of their virtual card, such as the card number, CVV, and expiration date, instead of the physical card details. These virtual card details are securely processed by the payment system, deducting the transaction amount from the available funds in the linked bank account.
They offer flexibility to use for online purchases and in-store transactions, provided they are added to a digital wallet such as Google Pay or Apple Pay for contactless payments. Each transaction generates a unique card number, enhancing security by protecting the actual card information from potential fraud. It also provides an added layer of security by allowing users to block the card instantly through the mobile app if any suspicious activity is detected.
How to Use a Virtual Debit card Internationally
Unlike physical debit cards, virtual cards do not require activation steps and are ready for immediate use once created. If you want to purchase online from international shops, you just tap on your phone and proceed just like a Mastercard or a Visa Card.
Users can set custom limits on spending and usage, enabling better control over expenses and reducing the risk of overspending. If you’ve linked your Virtual Debit Card to a multi-currency account, you can use the local currency to avoid high currency exchange costs.
They offer convenience, security, and ease of management through online platforms, making them a popular choice for individuals and businesses looking for secure and efficient payment solutions in the digital age. It is wise to use a Virtual Debit Card with no foreign transaction fees.
How Can I Apply for a Virtual Debit Card In Canada?
To apply , you can follow these steps:
- Check with your Bank: Contact your bank to see if they offer a virtual debit card service. Royal Bank of Canada (RBC) supports numerous websites across Canada, where applicable settings are shared.
- Mobile Banking App: If your bank offers a virtual debit card, you can typically apply through their mobile banking app. This is where you can manage your virtual debit card and access its features.
- Digital Wallet: Some digital wallets, like IntaSend, also offer virtual debit cards. You can sign up for an IntaSend account and complete the KYC process to request your virtual Visa card or Mastercard.
- Airwallex: Another option is to use Airwallex, which offers a virtual debit card that can be used for online and offline transactions. You can create virtual cards for employees and business expenses instantly, and spend globally in multiple currencies with no transaction fees
- Check Fees and Requirements: Before applying, ensure you understand any fees associated with the virtual debit card and the requirements for its use, such as any necessary security measures or account balances.
What Are the Benefits of Using Virtual Debit Cards?
Here are the benefits of having a Virtual Debit Card:
Security
They are more secure than physical cards, as they are protected by both a mobile app password and a digital signature. They cannot be easily stolen, lost, or duplicated, reducing the risk of fraud.
Convenience
They are already activated and ready to use, without requiring any additional activation steps. They can be easily accessed and managed through a mobile banking app.
Control
Users can set custom spending limits and transaction settings on their virtual debit cards, allowing for better control over their finances.
Instant Access
Virtual debit cards can be created and accessed instantly through a mobile app, without having to wait for a physical card to be delivered.
Accountability
They also provide improved oversight and tracking of expenses, as each transaction is automatically logged and attributed to the user who made the purchase.
Multiple Currency
In addition, they are linked to multi-currency accounts, allowing you to transact in multiple currencies. Thus, helps you spend expensive foreign currency exchange costs.
Virtual Debit Card vs Physical Debit Card
Virtual debit cards and physical debit cards are both types of debit cards that allow users to make transactions using funds directly from their bank accounts. The main differences between them lie in their usage, security, and convenience.
The table below summarises Virtual Debit Card vs Physical Debit Card.
| Feature | Virtual Debit Card | Physical Debit Card |
| Security | Offer enhanced security features, such as the ability to generate unique card numbers for each transaction, which reduces the risk of fraud and data breaches prevalent in online transactions. | Physical debit cards can have significant security features, such as EMV chip technology that reduces the risk of data breaches and card misuse |
| Usage | Designed specifically for online transactions and are not accepted for in-person purchases or cash withdrawals from ATMs. | Physical debit cards can be used for both online and offline transactions, including in-store purchases and cash withdrawals from ATMs. |
| Convenience | They are more convenient for online transactions, as they eliminate the need to carry a physical card or wait for an ATM withdrawal to access funds. | Physical debit cards offer flexibility for in-person payments and the ease of withdrawing cash from ATMs if necessary. |
| Accessibility | You can easily managed and monitored through mobile apps, providing instant access to transaction history and balance checks. | Physical debit cards are widely accepted globally and can be used anywhere Visa or Mastercard is accepted. |
| Control | Moreover, they provide more control over financial transactions, allowing for preset spending limits, expiration dates, and usage restrictions to prevent overspending and ensure financial discipline. | Physical debit cards can also offer limit settings, such as those found on prepaid cards, which can be useful for managing expenses |
Key Takeaway
Virtual Debit Card vs Physical Debit Card, Which One Is Better for You?
Virtual Debit Cards are more suitable for online transactions and offer enhanced security features, while Physical Debit Cards are more versatile and offer flexibility for both online and offline transactions. The choice between the two ultimately depends on the dominant daily transactions in your business operations and the level of security and control you require.
Frequently Asked Question About Virtual Debit Cards In Canada
How do I get a Virtual Visa debit card in Canada?
You can get a Virtual Visa debit card in Canada through your bank’s mobile banking app or digital wallet. For example, Royal Bank of Canada (RBC) supports numerous websites across Canada, where applicable settings are shared.
Can I use a virtual debit card at ATMs in Canada?
No, virtual debit cards in Canada do not have access to ATMs. They are designed for online transactions and cannot be used for cash withdrawals.
Are virtual debit cards secure in Canada?
Yes, they are considered very safe and secure compared to physical cards. They are digital and only available on your mobile banking app, making it difficult to duplicate or steal a virtual digital card.
Can I use a virtual debit card for in-store purchases in Canada?
Virtual debit cards in Canada can be used for in-store purchases if the store accepts contactless payments through POS machines. However, you cannot use it for in-store purchases where swiping or tapping the card is needed.
Are there any fees associated with virtual debit cards in Canada?
Virtual debit cards in Canada may charge a minimal fee for issuing the card, but the fees vary based on the provider and services offered.
