What are the Differences Between Virtual and Physical Cards?11 min read

What are the Differences Between Virtual and Physical Cards?11 min read

Paying bills, shopping online or dealing with money while on the go, how we deal with money has increasingly become digital. 

To accompany this development, banks now provide “virtual” equivalents of traditional debit cards. 

But for those who aren’t familiar with online banking, the virtual vs. the physical card distinction can be fuzzy. So let’s explore the differences to see which type is right for you.

What Are Virtual Cards and How Do They Differ from Physical Cards?

In other words, a virtual card is a digital replica of a credit card that’s only available online — no physical card is issued. 

When buying goods and services with the virtual card, you use your card number, expiration date, and security code just like you did with a physical card. But behind the scenes these information are tied to your bank account for funds to be deposited electronically.

Physical cards, on the other hand, are stamped in clear plastic with the long card number and other codes. They allow you to pay in-store or online by swiping, typing or manually entering information.

Aside from their intangible nature, virtual cards often have limitations not applicable to physical cards. For instance, some banks limit how much you can pay or how much you can spend per month with virtual cards. 

This offers a more secure layer of protection than persistent physical card information. Virtual cards also tend to expire after a certain period of time, so a new number is required.

Security Features of Virtual Cards vs. Physical Cards

As far as security goes, virtual cards actually have some things going for them. Virtual card data isn’t printed, so there is no chance the long card number will be stolen or skimmed if the real card is lost or stolen.

Below are some specific security features that make virtual cards safe for online transactions:

• Unique card numbers – Most providers issue unique virtual card numbers that can be used only once per transaction, in contrast to a permanent card number.
• Limit spending – As we discussed, virtual cards are likely to come with customizable per-purchase and monthly spending caps, unlike those on the physical card.
• Simple cancellation – If a virtual card gets stolen, you can easily cancel the card number on line. In the case of physical cards, you have to reach out to the company that issued the card to cancel and reissue it.
• No card in play – Since the virtual card exists only in the cloud, it avoids the possibility of card skimming or copying the numbers if the real card has been lost.

These additional layers of security make virtual cards safe, enabling online payments with less risk of theft or fraudulent charge than the physical cards.

How to Use Virtual Cards for Online Transactions?

Okay, now that you understand what virtual cards are, let’s check out how to use a virtual card to make an online transaction. 

It is extremely easy to do it via The Kingdom Bank mobile or internet banking:

• Sign into your bank account through a computer or banking application.
• Find the “Virtual Cards” or “Online Cards” section and create a new virtual card number.
• Take the long card number, expiration date and security code and write them down.
• Click the Checkout button on the merchant’s website just like you would with the actual card and type in the virtual card number.
• Check out and order – the money will be taken out of your partnered bank account.
• Check the history of your virtual card transactions from your online bank account.

The online card function works exactly the same way as you would with a physical card without the plastic card. 

The virtual card from The Kingdom Bank is a secure way to pay online directly from your bank account.

Advantages of Virtual Cards for Travel Compared to Physical Cards

Virtual cards also offer several distinct benefits to international travelers when compared with carrying more than one card in another country:

• Support for several currencies – Some providers provide the option to create virtual cards from other currencies than your main account currency. Good for keeping the costs of changing currencies down.
• Disposability – Instead of carrying multiple physical cards, you will have the ability to create virtual card numbers for every shop you will be shopping at or country you will be shopping from. Limit risk if a card is lost or stolen.
• Spending controls – Create personalized one-time and monthly spending thresholds for a trip budget that prevent overspending. Not possible with physical cards.
• Cancel easily – If a virtual card number is stolen while traveling, it’s easy to cancel just that number without interfering with other cards when you arrive home.
• Convenience – Virtual cards can always be accessed through banking apps on your smartphone no matter what internet you’re using. There is no need to keep multiple physical cards.

So if you love traveling, virtual cards by The Kingdom Bank are a convenient and secure way to pay when travelling across the world right from your domestic currency account.

Which is Better for You: Virtual Cards or Physical Cards?

Which card you prefer, virtual or physical, is dependent on your specific payment requirements and habits. Here are some general guidelines:

• You still need to use physical cards if you regularly spend time in stores that don’t accept contactless payments. They also offer rewards points for purchases where they’re available.
• Virtual cards are much safer and easier to shop with online, through apps, or pay bills thanks to additional security and controls.
• If you travel internationally frequently, virtual cards save card space and provide payment flexibility that physical cards don’t.
• Some want the extra protection of disposable virtual card numbers when doing large transactions online for short, periodic online visits.
• For low-budget travellers, virtual cards’ caps on spend allow you to stick to a travel cap rather than limitless physical cards.

If you mostly buy things offline, physical cards are likely your best bet. But for those who regularly buy online or internationally, virtual cards via The Kingdom Bank’s digital banking platform can be an effective security and payment option.

Virtual and physical cards offer benefits based on your specific payment requirements and behaviors. With The Kingdom Bank’s online banking service, virtual cards are now accessible for secure online payments worldwide. Check out our virtual card offerings next time you’re traveling abroad or doing your shopping online, and make payments more secure and easier than ever.