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4 Reasons you should use a virtual card when online shopping

4 min read

KOHO Virtual Credit Card

Written By

Nicole Dickens
Nicole Dickens

Rounding it up

  • Why would you choose a virtual card over the one in your wallet while online shopping? For starters, it provides you with extra security against identity theft.

  • Since they’re already installed on your phone, virtual cards also make online purchases in-app and on your phone’s web browser super easy.

  • Many virtual cards, including KOHO’s, offer cash back perks as well.

  • Physical cards take time to arrive at your mailbox; virtual card deliveries are instant! That means you can start spending ASAP.

With a virtual card — like a KOHO virtual prepaid Mastercard® — you can online shop without having to budge from the couch. Plus, when you set up a virtual KOHO prepaid card, you can still build your savings by taking advantage of all the great cash back benefits your account offers.

And this is especially important: Your virtual KOHO is safely stored on your phone instead of your wallet, meaning it's harder to lose.

Here’s your guide to everything you need to know about your KOHO virtual card and why it’s your best choice for online shopping.

What is a virtual card?

Let’s get some things straight before we get too far ahead of ourselves here: What even is a virtual card?

A virtual card is a digital version of the plastic card that you have in your wallet. With your KOHO account, you get complimentary access to a virtual KOHO prepaid Mastercard that you can use to pay for online shopping, food delivery apps, ride sharing apps, and even in-store purchases at some retailers.

You can set up your virtual card by linking your KOHO prepaid Mastercard to Apple Pay or Samsung Pay in just a few seconds. You can also view your virtual card in the KOHO app by clicking on the credit card image in the top right hand corner of your screen.

"Your virtual KOHO card can help keep your identity safe while you shop online."

The benefits of a KOHO virtual prepaid Mastercard card for online shopping

Virtual cards sound cool, but why would you choose to use one for online shopping when you could just get up off the couch and grab your wallet instead? Here are four great reasons why you should use your virtual KOHO Mastercard while online shopping.

1. Improved security & reduced risk of identity theft

Perhaps the most important benefit of the virtual card online shopping experience is the fact that using this type of digital payment method actually does a lot to protect your identity. When you use a credit card for online shopping, you’re literally giving a website everything they need to steal your information and make unauthorized purchases with your money.

Of course, if you’re shopping with a trusted retailer or on a website that uses a secure payment processing service, it’s unlikely that your favourite clothing company is going to steal your identity. Websites do get hacked though, which potentially exposes your credit card information to all sorts of not-so-nice people.

How exactly does a virtual card prevent all of this? It’s actually an interesting process.

When you link your KOHO prepaid Mastercard to Apple or Google Pay and use these apps to shop online, they generate a virtual card number. Thanks to this virtual card number,
merchants and payment processing platforms don't have access to your real account information.

This makes it really difficult more difficult for people to make unauthorized purchases on your dime. When you shop with your KOHO virtual card using Apple or Google Pay, you can feel confident that you’re getting the best protection possible from fraudsters.

KOHO Signup Link

2. Quick and easy online payments

These days, most of us have our phones on hand wherever we go. If we’re just lounging around the house, though, we probably don’t have our credit card on hand to make purchases online.

With your virtual KOHO prepaid Mastercard, you can make online purchases in seconds using your phone.

If you use Apple Pay, you can quickly use your virtual card to pay for your online shopping by linking your iPhone and your Macbook together and confirming with your Touch ID or Face ID. Alternatively, you can use either Apple Pay or Samsung Pay to make online purchases in-app and on your phone’s web browser without having to reach for your wallet. And if you’d prefer to punch in a number, that’s fine, too! Your virtual card is easily accessible on your phone, so no need to reach for that wallet.

"Thanks to this virtual card number, merchants and payment processing platforms don't have access to your real account information."

3. Cash back on every purchase

With your KOHO account you get 1% cash back on groceries, transportation and even more money in your pocket when you opt for KOHO Extra (If you're curious about Extra, we previously wrote about whether Extra is worth it for you!). If you’re concerned that you won’t be able to earn cash back when you use your virtual card, then we’re here to alleviate all your worries.

Even when you take your KOHO card into the virtual world, you’ll still be able to rack up cash back, just like you do when you swipe your snazzy physical card. You also get the same KOHO cash back you know and love when you use a virtual card.

4. Start shopping before your card arrives in the mail

If you’ve just opened a KOHO prepaid Mastercard account, welcome to the family, and we’re glad to have you along! If you’re bummed that you have to wait a few days for your new card to arrive in the mail, then you’ll be happy to know that you can actually start shopping right away by using your KOHO virtual card.

As soon as your account is activated, you can transfer funds and start shopping online with your virtual card even if your physical card is still en route to your home. That way, you can maximize your cash back and work towards becoming a money-saving guru on your very next purchase.

Go virtual with your KOHO prepaid Mastercard

With all their great security and privacy benefits, virtual cards are the way of the future. Plus, with your virtual KOHO card, you can still earn cash back on groceries and transportation and take control of your finances.

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!

Nicole Dickens

Nicole is just another twenty-something who (thankfully!) stumbled into Marketing. A fiction and Twitter buff, she loves all things pop culture and will never turn down a taco or a themed party.



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