Virtual credit card: Pros and cons

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Virtual credit card: Pros and cons

Rounding it up

  • Virtual credit cards are digital versions of your physical plastic or metal credit card.

  • To use a virtual credit card, you typically need to have a mobile wallet app, such as Apple Pay, Google Pay, or Samsung Pay, on your smartphone.

  • With virtual credit cards, you can generate a one-time card number for each transaction that you make. These one-time card numbers can reduce the risk of fraudulent charges on your account if hackers get access to your payment information.

  • In addition to their many security benefits, virtual cards also provide a seamless transaction experience and they can help reduce plastic pollution across the globe.

  • But there are downsides to using virtual credit cards, especially if you’re shopping at a merchant that doesn’t accept digital payments or if you need to process a refund at a brick-and-mortar store.

  • All KOHO account holders get access to a free virtual prepaid Mastercard® that they can use for both online and in-store transactions.

6 min read

Gaby Pilson
#virtual card#credit card#virtual credit card

Gaby Pilson

Gaby Pilson is a writer, educator, travel guide, and lover of all things personal finance. She’s passionate about helping people feel empowered to take control of their financial lives by making investing, budgeting, and money-saving resources accessible to everyone.

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