Best Virtual Cards for Secure Online Payments

The best virtual cards for secure online payments let you shop without carrying or entering the details from your physical card. Look for features such as in-app card controls, transaction notifications, easy card replacement and compatibility with digital wallets.

KOHO provides a virtual prepaid Mastercard that can be used for online purchases, subscriptions and mobile payments.

KOHO Virtual Card: Best Pick

With the KOHO Virtual Card, you can:

• Open an account and get your card instantly

• Earn 3.5% interest on your entire balance

• Earn up to 6.5% cash back on select merchants

• Lock and unlock your card instantly in the app

Why Use a Virtual Card Online?

A virtual card keeps your payment information inside an app or digital wallet rather than on a physical piece of plastic. It includes its own card number, expiry date and security code for completing online transactions.

Virtual cards can be useful for:

• Online shopping

• Recurring subscriptions

• In-app purchases

• Travel bookings

• Contactless mobile payments

You can also replace your KOHO Virtual Card directly through the app if its details become compromised. Virtual card replacements are currently limited to once every 30 days.

What Makes a Virtual Card Secure?

When comparing virtual cards, look for:

• The ability to lock the card immediately

• Real-time transaction notifications

• Multi-factor authentication

• Easy replacement of card details

• Clear fraud-reporting procedures

• Control over spending limits

Multi-factor authentication adds another layer of protection by requiring more than a password to access your account. The Financial Consumer Agency of Canada also recommends checking transactions regularly and reporting unauthorized activity immediately.

How Can You Shop Online More Safely?

A virtual card can improve control over online spending, but you should still follow basic security practices:

• Shop through trusted websites

• Check for “https” and a padlock symbol

• Avoid making payments over public Wi-Fi

• Use unique passwords for financial accounts

• Never share your card details by email or text

• Review your transactions regularly

The Competition Bureau recommends using secure, reputable payment services and avoiding unfamiliar websites that request unnecessary personal information.

Is the KOHO Virtual Card a Credit Card?

No. The KOHO Virtual Card is a prepaid Mastercard, so you spend money that has already been added to your KOHO account. It does not provide a revolving credit limit like a traditional credit card.

This can make it easier to control online spending because purchases are limited by the money available in your account.