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Compare virtual debit cards
Get all the benefits of a debit card without needing to carry your wallet.
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.
What is a virtual debit card?
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:
- A digital version of your physical card. This "card" exists in a digital wallet, usually on your phone with Apple Pay, Android Pay or an Internet bank app. It uses the same card number and details as the physical card, but you access it through an app and pay using contactless payment technology just like you can with your physical card.
- A digital "card" that is not necessarily linked to a physical card. This virtual debit card uses an encrypted card number. You can use it for contactless payments in-store or even by logging in when you shop online.
- A digital pre-paid card that you load money onto. You will be given a virtual card number to use for online shopping; this number may also change for each website. Because there is no set card number, these can be more secure.
What are the benefits of a virtual debit card?
Using a virtual debit card has a number of advantages, including the following:
Secure online shopping
If you are using a virtual debit card that generates a random card number, this will help keep your funds secure when shopping online.
Convenience
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.
No waiting for card delivery
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.
Single- or multi-use
There are single- and multi-use virtual debit cards available to suit your online payment needs.
Multi-currency cards available
Some providers also offer multi-currency prepaid debit cards, allowing you to save on currency conversion fees when buying from overseas retailers.
Prepaid
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.
What are the drawbacks to a virtual debit card?
Keep in mind virtual debit cards may not suit everyone. Here are some points to consider before signing up:
- Prepaid virtual debit cards will have limits. You may only be able to hold a certain amount on the card.
- You can't spend more than $100 per transaction in-store. In-store transactions will be contactless payments, which are limited to $100 per transaction.
- Prepaid cards aren't guaranteed by the government. If you choose a prepaid card, any funds you load onto it aren't guaranteed by the government. This is not the case with debit cards, where deposits up to $250,000 are guaranteed.
How do I use a virtual debit card?
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.
Have more questions about virtual debit cards?
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