Debit cards give you convenient access to funds in your transaction account, allowing you to pay for goods and services with a swipe, insert or tap of the card. But these days, you don't necessarily need the physical card with you at all.
Here, we talk you through what a virtual debit card is, how they work and how to decide whether they're right for you.
Virtual debit cards are essentially a digital version of the plastic debit card you are probably already used to. There are a few types of virtual debit cards you really need to know about:
Using a virtual debit card has a number of advantages, including the following:
If you are using a virtual debit card that generates a random card number, this will help keep your funds secure when shopping online.
You won't need to bring a physical debit card with you to complete transactions in-store. You can do this all on your smartphone.
You won't need to wait for a card to be delivered when you sign up for a new account or if your card expires. With the new digital banks, some give you a virtual debit card, which you can use as soon as you get an account and before your physical card is even delivered.
There are single- and multi-use virtual debit cards available to suit your online payment needs.
Some providers also offer multi-currency prepaid debit cards, allowing you to save on currency conversion fees when buying from overseas retailers.
Virtual debit cards can be prepaid, giving you the freedom to load them up with the funds you want to spend rather than running up a debt with a credit card provider.
Keep in mind virtual debit cards may not suit everyone. Here are some points to consider before signing up:
This depends on the type of virtual debit card you choose. If you opt for a virtual debit card that can be loaded into a digital wallet, you will need to have a transaction account that offers this option. Once you have opened the account and have the physical card, you can follow the prompts in your chosen digital wallet to add the card. The bank may also be able to give you a virtual debit card in your bank app before it sends you the physical card.
For a virtual card for online shopping, just sign up online and follow the process. You should receive the details once the process is completed. You may be able to link this card to a PayPal account or bank account or you may need to load funds to the virtual card account itself.
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