Struggling to choose between virtual and physical cards? Discover the differences between each to find the best fit for your needs and why you should adopt the Bitnob Virtual Card.
In this current day and age, the method of making payments has been simplified and more convenient. Financial transactions are more diverse and accessible than ever, making the choice between virtual and physical cards increasingly difficult.
Physical cards for payments date as far back as 1958 introducing us to safety and ease. However, the introduction of virtual cards, with their special features makes physical cards less popular for online and in-person purchases.
In this article, we’ll take a closer look at virtual cards vs physical cards, the Pros and Cons, and which is better for making your payments.
What are Virtual Cards?
As the name suggests, Virtual cards are digital payment cards with no physical form. They are created electronically and designed for online transactions.
They may be linked to a physical card or a bank account, but they are represented digitally with all the features of a physical card. This includes the 16-digit number, a CVV code, an expiration date, and a PIN code.
How are Virtual Cards Issued
Virtual cards can be issued by a bank, financial institution, or payment service provider (PSP). They are generated through secure online platforms or Mobile Apps.
What are Physical Cards
Physical cards are traditional payment cards, usually small, rectangular-shaped, made of plastic or sometimes metal, and commonly used for in-person purchases at Point-of-sale terminals (POS) and ATMS.
The physical card features the cardholder's name, a 16-digit card number, a magnetic strip, a PIN code, an expiration date, and a CVV (Card Verification Value). The information is encoded in the card.
How are Physical Cards Issued
Banks and other financial institutions usually issue physical cards. You initiate the process by applying for a card or opening a new bank account. Once you receive the card, you’ll need to activate the card before use and that depends on the issuer’s instructions.
Differences: Virtual Card vs Physical Card
| FEATURES | VIRTUAL CARD | PHYSICAL CARD |
| Physical Presence | Exists digitally, with card details accessible through a mobile App or Online Platform | A plastic or metal card you can hold in your hand |
| Use Case | Primarily for online transactions and recurring subscriptions | Widely accepted for in-person purchases and ATM withdrawals
|
| Issuance | Issued almost instantly after approval, accessible within the app | Could take several days or weeks for approval
|
| Convenience | Convenient for online purchases, always accessible on your mobile device | Requires carrying it with you for transactions
|
| Management | Spending limits can be enabled with the option to freeze or terminate the card instantly when needed | Limited ability to control spending beyond keeping track of receipts |
| Security | It’s considered more secure because it can’t be stolen or misplaced. Some offer single-use functionality for added security | It can be misplaced or stolen |
Key Advantages Of a Physical Card
Despite the rise of virtual cards, physical cards still hold their ground and this is due to several advantages
Widespread Acceptance
Cardholders are generally aware that Physical cards are accepted for In-person transactions at retail stores and outlets. It has a larger percentage of widespread acceptance.
ATM Access
Physical cards were introduced to curb frequent visits to the bank and are essential for withdrawing cash from the Automated Teller Machine (ATM). Currently, virtual cards cannot be used at the ATMS
Backup Option
If your phone battery dies or you have connectivity issues, a physical card still enables you to make your purchases. They have a success rate in offline transactions.
Key Advantages Of a Virtual Card
Enhanced Security: Virtual cards provide a layer of enhanced security. They don’t have a physical form so there’s no risk of it being lost or stolen. They often come with additional security like the ability to freeze and terminate the card when needed.
Ease Of Use: Virtual Cards are convenient for online shopping and digital transactions. They are easily accessible for making payments, all you need to do is copy and paste your card details.
Total Control: With virtual cards, you have better spending control as you want. You can apply a limit on virtual expenses and usage, which reduces the risk of overspending, and costly auto-renewals. It can be used to track your budgeting and spending.
Faster Access: Unlike physical cards where you visit the bank to get your card, virtual cards can be generated and used almost instantly.
Virtual Card vs Physical Card; Which Is Better?
Judging from the advantages explained above, it’s safer to say that the virtual debit card is the best fit for you. It’s convenient for online payments just like a regular card, without needing a physical card. It’s secure as you can manage your funds directly through the Bitnob app, potentially reducing fraud risks. It has a global reach, you can use it on websites/platforms.
If you're looking for an easy and secure way to pay online while shopping, then Bitnob's virtual card is a great option to consider
The Best Virtual Card For You
Now that you’re here, you must know that the Bitnob Virtual Card is the best virtual card for you. With it, you can conveniently shop and pay for subscriptions on global sites or platforms, you can top up the card with a minimum of $3 and a maximum of $1000 at a time and this can help you manage your finances. It’s easy to create and can be used within minutes directly from the bitnob App.
Yet to give it a try? Download Bitnob to create your virtual card.