2 min read

Are Virtual Credit Cards Safe

Written By

Justin da Rosa

It seems like everything is going virtual these days and, though it might sound like something out of a sci-fi film, so are your debit and credit cards. That’s right, you can now do all your spending virtually with just your phone.

Which probably sounds great to anyone who’s had to make the embarrassing phone call to the bank after losing yet another physical card.

For those who are unfamiliar, here’s everything you need to know about virtual credit cards – and how you can use a KOHO card to build your credit history.

What Is a Virtual Card?

A virtual credit card works just like a physical one, only it exists entirely online. It provides the same functionality as a traditional credit card, allowing you to make purchases, pay bills, and access credit, but with the added convenience and security of being digital.

It should be noted, though, that virtual credit cards have some unique features that differentiate them from physical cards. For example, they can be easily generated and used instantly, without the need for physical cards to be mailed or delivered. In some cases, they can also be disposable, meaning they can be used for a single transaction and then discarded, reducing the risk of fraud or unauthorized use.

More and more Canadians are choosing to use virtual cards these days, and for good reason. Firstly, they offer a convenient and seamless online payment experience. With the rise of e-commerce and digital transactions, virtual cards provide a secure and efficient way to make online purchases. Secondly, virtual cards offer enhanced security compared to traditional credit cards. Since each transaction uses a unique card number, the risk of fraud or unauthorized use is significantly reduced. Finally, virtual cards align with the digital age we live in, where everything is moving towards digitalization and convenience.

Why Are Virtual Cards Safe?

Virtual cards have several security features that protect your information and ensure safe transactions. Here are some of the ways virtual cards are safe:

Protection against fraud

Virtual cards incorporate various security features to protect user information and prevent fraudulent activities. These features include encryption technology, two-factor authentication, and transaction monitoring for suspicious activities.

Information security

Virtual cards keep sensitive user information secure by using encryption algorithms to protect data transmission and storage. Virtual card providers also implement strict privacy policies and follow industry standards to ensure the confidentiality of user information.

Despite the safety features of virtual cards, you should still practice caution when using them to minimize potential risks. For example, you need to be cautious when sharing their virtual card details, especially on unfamiliar or suspicious websites. You should also regularly monitor your virtual card transactions for any unauthorized charges or suspicious activities.

How Do I Get a Virtual Credit Card?

Signing up for a virtual card in Canada is a fairly simple process. Here’s how it works with KOHO.

  • Visit the KOHO website and check out our various plans.

  • There are four different plans to choose from, and they all come with a virtual card. They include:

    • The Easy plan, which offers free and easy earning on your must-haves

    • The Essential plan, which lets you earn more on the essentials your wallet cares about

    • The Extra plan, for those interested in earning extra on their spending and savings

    • The Everything plan, which might be for you if you’re all about supercharging everything in your KOHO account

Once you’ve chosen the right account for you, click the sign up button and get started. You’ll have to provide a few pieces of info, such as your email address, name, date of birth, and phone number – but it shouldn’t take more than a few minutes.

Once you’ve completed the short process, you’ll get access to your virtual card – so you can get spending and saving right away.

Note: KOHO product information and/or features may have been updated since this blog post was published. Please refer to our KOHO Plans page for our most up to date account information!