History credits Western Union with the growth of virtual payment. In 1871, the company is said to have debuted the first Electronic Fund Transfer (EFT). Ever since people have been content with making online transfers and transactions rather than hold physical cash for it. This game-changing initiative was part of the decisions that informed the rise of the World Wide Web in the 1960s.
Subsequently, there were virtual cards. A bank client can now either choose to own a credit card or a debit card. Credit cards provide you with the option to borrow loans from the bank. Debit cards allow you to draw on your deposits. Opinions of bank clients shared on reviewsbird.co.uk, confirm that both cards have pros and cons. Similarly, both cards are commonly used in the financial sector.
Pros of Virtual Debit Cards
All things are of merits and demerits, not excluding virtual debit cards. The following are some of the reasons the card has been popular in recent times.
· It is convenient
If online shopping makes things easier, then online payment also does. Nothing beats the convenience of ordering items online from the comfort of your home. Rather than go to the bank to deposit into the account of a business, you also make your payment online.
· It is easy to use
Virtual debit cards are not difficult to use. To make payment online, you only need to have saved your card details such as card number, bank password or pin, card expiration date, and debit card number. All of which makes for an easy-to-use, one-time purchase.
· Fraud protection
While a physical debit card in your wallet can prove dangerous, virtual cards are the opposite. You have every detail about you and your card securely saved online.
· Manage spending and subscriptions
Virtual debit cards allow you to manage your subscriptions and modify your spending. You can set spending targets and stick to it.
Cons of Virtual Debit Cards
Some of the disadvantages of owning a virtual debit card include:
· Not available everywhere
There are limits to the number of vendors that allow virtual debit cards, so they are not available everywhere you make or intend to make transactions.
· Fraud is possible
Regardless of the security level, fraud is still possible. Card clients are automatically subscribed with free trial offers. After the end of the trial, they are charged usually without full information.
· Not used for physical goods
Another disadvantage of the virtual debit card is that it cannot be used to pick up offline goods. While online shopping is gradually increasing, many consumers still patronise brick and mortar stores.
· Zero liability returns
Virtual debit cards come with zero liability in the event of fraud. You never get compensated for whatever you are lured into subscribing. This is not so with a physical debit card. A vendor or bank can move funds back to you if they feel you are not fully informed about the transaction.
Although there are several advantages to why you should consider getting a virtual card, there are likewise disadvantages. You need to be familiar with the pros and cons before you get one.