Will the Canada Post strike affect our instant virtual cards? Never. Tap away.
Unlocking global transactions has never been easier than with the best international virtual cards. Whether a frequent traveller, a digital nomad, or simply managing cross-border payments, these innovative financial tools offer unparalleled convenience and security.
You can use virtual credit and debit cards online or in-store without the hassle of currency conversions or international transaction fees. Join us as we explore how these virtual cards empower your financial freedom and streamline your global lifestyle.
What is a virtual credit card?
A virtual credit card is a digital version of a traditional credit card that exists only in electronic form. Unlike a physical card made of plastic, a virtual credit card is typically issued by a financial institution for online use.
How does a virtual credit card work?
Issuance: When you apply for a virtual credit card, you receive card details (card number, expiration date, and CVV code) that are generated electronically and are not physically tangible.
Online transactions: You can use these virtual card details to make purchases online. They are often used for one-time or limited-use transactions to enhance security.
Security: Virtual credit cards are safe and designed to reduce the risk of fraud and unauthorized transactions. They can be easily cancelled or regenerated with new details if compromised, offering greater peace of mind than traditional cards.
Limitations: Virtual credit cards may have restrictions on where they can be used, such as limitations on international transactions or specific merchants, depending on the issuer's policies.
Integration: Many virtual credit cards are integrated with mobile wallets and payment platforms, making them convenient for digital and mobile payments.
Why you need a virtual credit card for global transactions
Using a virtual credit card for global transactions offers several key advantages that make it a valuable tool:
Security: Virtual credit cards add an extra layer of security compared to traditional cards. Since they are used primarily for online transactions and can often be generated for single-use or limited use, they reduce the risk of fraud and unauthorized charges.
Convenience: Shopping with virtual money is convenient for frequent travelers and online shoppers. You can make purchases from anywhere in the world without concerns about currency conversion or international transaction fees that are typically associated with traditional credit cards.
Privacy: Virtual credit cards can help protect your personal and financial information. Because they are not tied directly to your primary credit card account, they can shield your main financial details from potential breaches.
Control: Many virtual credit cards allow you to set spending limits and expiration dates, providing greater control over your finances and reducing the risk of overspending or recurring charges.
Accessibility: They are easily accessible through online banking platforms or mobile apps, making them convenient anytime and anywhere you have an internet connection.
Overall, a virtual credit card is a modern solution for managing global transactions securely and conveniently, catering to the needs of today's interconnected world. A better understanding of the pros and cons of virtual credit cards can help you decide whether you should use them.
Key features of international virtual cards
Borderless spending with no foreign transaction fees
Enjoy seamless international transactions with no foreign transaction fees. This feature makes it cost-effective and straightforward to make purchases in different currencies worldwide.
Enhanced security with instant freeze or cancel capabilities
Instantly freeze or cancel your virtual card if you suspect fraudulent activity. Temporary card numbers for each transaction add an extra layer of protection, and setting spending limits helps control expenses and prevent unauthorized charges.
Flexibility
Generate cards for one-time transactions or set up cards for recurring payments with specific merchants. Virtual cards are globally accepted at online merchants that take traditional credit cards, offering versatile use.
Choosing an international virtual card provider
Compare virtual debit card providers
Start by researching different providers to understand their offerings. Look for reputable companies that offer virtual debit cards with features that match your needs. Compare the benefits, fees, and limitations of each provider to make an informed decision.
Consider transaction fees and exchange rates
Evaluate the transaction fees associated with each virtual card provider. Some providers may charge lower fees for international transactions, while others might offer better exchange rates. Choose a provider that offers a favourable balance between fees and exchange rates to maximize your savings.
Evaluate security features and customer support
Security is crucial when dealing with international transactions. Look for providers that offer robust security features, such as instant freeze or cancel capabilities, temporary card numbers, and spending limits.
Additionally, assess the quality of customer support. Reliable and responsive customer service can be invaluable if you encounter any issues with your virtual card.
How to get an international virtual card
Requesting and using an international virtual credit card
To get started with an international virtual credit card, visit the website or mobile app of your chosen provider. Fill out an application form with your personal and financial details, such as your name, address, and income information. Some providers may also require identity verification, which could involve submitting a government-issued ID or a selfie for comparison.
Once your application is approved, you will receive your virtual card details, including the card number, expiration date, and CVV code. These details are typically sent via email or made available through the provider's app. To activate your virtual card, follow the instructions provided, which may include verifying your email or phone number. After activation, your virtual card is ready for use in online transactions or for linking to digital wallets.
Integrating with digital wallets like Apple or Samsung Pay
Many virtual credit cards can be added to mobile wallets like Apple Pay, Google Pay, or Samsung Pay, enhancing their usability. To add your virtual card, open your mobile wallet app and select the option to add a new card. You can manually enter your virtual card details or use the provider’s app to add the card directly, which typically involves inputting the card number, expiration date, and CVV code.
After entering the details, complete a verification process required by the mobile wallet or card provider. It often includes receiving a verification code via SMS or email. Once your virtual card is successfully integrated, you can use your mobile wallet for secure digital payments online and at any contactless payment terminals that accept mobile payments. This integration offers the flexibility and convenience of using your virtual card online and in physical stores worldwide.
Managing company spending with virtual credit cards
Reduce the risk of card fraud
Virtual credit cards provide an excellent way to mitigate the risk of card fraud. Unlike traditional physical cards, virtual cards can be generated for single-use or specific vendors, significantly reducing the chances of unauthorized transactions. Each virtual card number is unique and can be set with spending limits and expiration dates, adding an extra layer of security. If suspicious activity is detected, the virtual card can be immediately frozen or cancelled without affecting the primary account, ensuring your company’s financial data remains protected.
Manage subscriptions and recurring payments
Managing subscriptions and recurring payments can be streamlined with virtual credit cards. You can assign a unique virtual card to each subscription service, making it easier to track and control spending. This way, if you need to cancel a subscription or change payment details, you can do so without affecting other services. Additionally, setting spending limits on each virtual card helps prevent overcharges and keeps recurring expenses within budget. This level of control ensures that your company's subscriptions are managed efficiently and transparently.
Keep track of company spending in one place
Virtual credit cards offer a centralized way to monitor and manage company spending. Through the provider’s online portal or mobile app, you can track all transactions in real-time. This visibility allows for better financial oversight, making it easier to identify and address any discrepancies or unauthorized charges promptly.
Detailed reporting features can categorize expenses, making it simpler to analyze spending patterns and prepare financial statements. By consolidating all company spending into one platform, virtual credit cards help streamline financial management and enhance overall budget control.
Maximizing your savings with international virtual cards
Avoid foreign transaction fees
Traditional credit cards often charge a percentage of each transaction made in a foreign currency, which can add up quickly. Virtual cards, especially those designed for international use, typically waive these fees, allowing you to save money on every purchase made abroad.
Favourable exchange rates
Many international virtual credit cards offer more favourable exchange rates compared to traditional banks or credit cards. This means you get more value for your money when converting currencies, helping you save on the cost of international transactions.
Cash back and reward programs
Some international virtual credit cards come with cashback and rewards programs tailored for global use. You can earn points, miles, or cashback on your purchases, which can be redeemed for travel, merchandise, or statement credits. By strategically using these cards for your international spending, you can maximize your rewards and savings.
Expense tracking and budgeting
Virtual credit cards provide detailed transaction records that make it easier to track your spending. Many providers offer tools and apps that categorize expenses, helping you monitor your budget more effectively. This increased visibility allows you to identify spending patterns and adjust your budget to avoid unnecessary expenses, leading to more savings.
No annual fees
Some international virtual credit cards come with no annual fees, making them a cost-effective choice for managing your global transactions. Without the burden of an annual fee, you can allocate more of your budget towards your actual expenses and savings goals.
Discounts and offers
Many providers of international virtual credit cards offer exclusive discounts and offers on travel, dining, and shopping. Taking advantage of these deals can further enhance your savings when spending abroad. Be sure to stay informed about the latest promotions and use your card accordingly to maximize your benefits.
Sign up for a KOHO virtual card today
KOHO's virtual credit card offers seamless shopping through your digital wallet, accompanied by cash back on every purchase. Accessible via the KOHO app, this card ensures convenience alongside advanced security features, safeguarding against fraud and cyber threats. Ideal for travelers and online shoppers, it provides a secure and adaptable payment solution.
In addition to its core benefits, KOHO provides overdraft protection coverage, granting up to $250 in interest-free cash advances. This feature aids in managing unforeseen expenses without disrupting your financial plans. Furthermore, KOHO offers a free credit score report to monitor your credit profile and offers insights for enhancing creditworthiness.
To support financial goals, KOHO has three different spending and saving plans with different features based on your needs and preferences. For example, the Extra and Everything plans offer no foreign transaction fees, while the Essential plan gives you basic cash-back rewards and account features with some fees. Notably, its high-interest savings account offers competitive rates to earn interest, surpassing traditional accounts for maximized savings growth.
For businesses, KOHO delivers tailored enterprise solutions that streamline financial operations and enhance efficiency. KOHO for Business accounts provides essential funding and tools to optimize financial management, empowering businesses to thrive. Explore KOHO today to begin building credit and achieving financial success.
About the author
Grace is a communications expert with a passion for storytelling. This hobby eventually turned into a career in various roles for banks, marketing agencies, and start-ups. With expertise in the finance industry, Grace has written extensively for many financial services and fintech companies.
Read more about this author