What Is a Prepaid Virtual Credit Card?

Many shoppers have seen an item online they would just love to have, but they don't feel safe making an online purchase. They are fearful of having their personal information stolen and used by others. A prepaid virtual credit card is the perfect solution. Virtual prepaid credit cards are easy to use, and you can control how much risk there is when using them.

Significance

The Internet is full of people waiting to steal your personal and financial information. The huge growth of e-commerce has made virtual credit cards a major asset in online purchases. The prepaid virtual credit card works just like a prepaid debit card, but it is used for online purchases only. You pay ahead of time for the card, which instead of an actual card is just a virtual credit card number you can use. This number has access only to the amount you prepaid, and is not attached to your checking, savings or other credit card accounts.

Function

Purchasing items using a prepaid virtual credit card is very easy. You shop online as you normally would; when you order, instead of providing your actual credit card number you provide a credit card number linked to an amount of money you have prepaid. This card does not exist in a physical form; it is just a number that can be used online to make purchases. Because there is no physical card, a brick-and-mortar store will not accept it for purchases.

Benefits

Using a prepaid virtual credit card removes the risk of thieves gaining access to your personal information by stealing your credit card number. The card number is not linked to any of your personal information, such as your social security number, banking account numbers or phone number. This allows people who are hesitant about shopping online to shop with a greater level of confidence and expands the sales of online retailers.

Considerations

There are still risks when using a prepaid virtual credit card to shop online. It is possible for the card number to be stolen. If this happens, all the thief can access is the prepaid amount on the card. It is a good idea to purchase a prepaid virtual credit card just for the amount you are planning to spend online in a single purchase or a very short time period.

Warning

As with any financial transaction, there are risks. Due to the rising popularity of prepaid virtual credit cards, there are a number of scams out there. Stick to the reputable cards in the industry; two of the leaders are TruCards and ePassporte. PayPal offers virtual credit cards to protect your account information as well.

Resources

• ePassporte
• TruCards