What Is A Virtual Card – And How Does It Work?

In the ever-growing digital world of today, and due to two years of lockdown regulations, online shopping has increased globally. Now more than ever, shopping online – whether it’s for groceries or clothing – has become ’the norm’ for many consumers.

But with this increased online activity comes the question of security: how safe is it to shop online today? Withfraudulent activityon the rise, the risk of having your bank card details stolen has increased too. That’s wherevirtual cardscome in.

A virtual card improves thesecurity of shoppers when making onlinepurchases. Why? Because virtual cards offer further protection from fraudulent online activity as your virtual card details can’t be stolen or duplicated. Keep reading to learn more about what a virtual card is and how they work.

What is a virtual card?

Virtual cards, also known as digital cards, work just like a physical bank card – except these cards exist ‘online’ instead of a piece of plastic in your physical wallet. Virtual cards come secured with encryption to provide a safe and convenient method of paying for your goods online and in-store.

FASTACard is an example of a virtual card. This credit enabled virtual card is loaded with your loan amount and you receive it immediately uponapproval of your online application, which takes only minutes.

How does a virtual card work?

Virtual cards are not physical cards and are often found in digital wallets or used with payment apps. Depending on where you get your virtual card from, they can also come with a mobile banking app or your virtual card details are sent to you via SMS.

Virtual cards are generally used for online payments and e-commerce, likeshopping onlineat stores like Takealot. For physical merchants to accept virtual cards, they either accept digital wallets like Apple Pay and Google Pay, or through a payment app like Snapscan and Zapper.

The benefits of a virtual card

1. Leave your physical card at home

Virtual cards exist entirely online and are simple and easy to use. They operate just like a debit orcredit card, and give you the convenience of being able to leave your physical card at home.

2. Use the card immediately

Unlike a physical card, which can take a few days to be delivered to you, virtual cards are issued to you instantly and you can start using the card for online payments and purchases immediately.

3. Manage recurring payments

Just like a debit orcreditcard, virtual cards expire after three years, so you can use virtual cards for managing recurring payments like monthly subscriptions for Netflix or Spotify.

4. You decide how much money to load

The amount of money, or credit, loaded onto the virtual card is completely up to you. For example, if you decide toapply for a FASTACard loanto the value of R7000 and are approved for this amount, that is the amount that will be loaded onto the virtual card.

5. User-friendly and reloadable

Virtual cards, like FASTACard, are user-friendly and uncomplicated to use. Once you have your card number and CVV number, you can use the card with payment apps like Snapscan and Zapper. With the reloadable functionality, FASTACard allows you to top up the same virtual card so you can continue using the card instead of applying for a new virtual card.

How to apply for FASTACard

1. Go towww.fasta.co.zaand select the “FASTACard – Cash on a digital card” tab.
2. Adjust the slider to choose how much money you would like on the card.
3. Select your instalment repaymentterm.
4. Click “Apply now.”
5. Complete thequick online application.
6. Upon approval, we will send your FASTACard details to you via SMS so you can use your card immediately.

To learn more about our FASTACard, take a look through our comprehensiveFAQs.