With the rise of online shopping, protecting your financial data has become more important than ever. It is crucial to protect your bank accounts and credit cards from fraud or theft. In this article, we will explore the best virtual payment options available to hide your financial transactions and minimize your risk profile.
The importance of virtual credit cards
Virtual credit cards provide an extra layer of security when shopping online. They allow you to avoid sharing your actual credit card information with every online store or website that asks for it. By using a virtual credit card, you can limit your exposure to potential fraud or unauthorized transactions.
Before diving into virtual credit card options, it’s important to address KYC (Know Your Customer). KYC is a mandatory process that banking entities follow to identify and verify their customers. When you apply for a banking or financial service, such as a credit card, you will be asked to share personal information, such as your real name, telephone number, address and identification number.
Top Virtual Credit Card Options
Here are some of the best virtual credit card options available:
Privacy.com is a well-known virtual credit card option that offers a high level of control over your cards. You can create unique cards, set spending limits, and even create monthly spending limits. Although there is an enhanced premium option, the free version offers enough features. However, it is important to note that Privacy.com is only for US residents and cannot be used on mobile wallets like Apple Pay.
Klutch is a new entrant to the virtual credit card market but offers unlimited virtual cards with extensive control over their use. You can even create cards for your family members and track their spending. Klutch also lets you earn up to 6% cash back on your purchases. However, like Privacy.com, it is only available to US residents and requires KYC.
3. Iron Jacket
IronVest, formerly known as Blurb by Abine, offers a service similar to Klutch but in the form of a prepaid debit card. Although this does not require KYC, you must trust IronVest with your credit or debit card information to top up the card. However, control over spending limits is limited and there are fees associated with loading prepaid cards. IronVest is also only available to US residents.
Revolut is available to residents of Australia, Japan, EU countries and the United States. It provides flexibility in creating and controlling virtual credit cards with spending limits. However, KYC is required and you need to connect your debit card or bank account to use this service.
If you invest in cryptocurrency, Moon offers an option to convert your crypto into a prepaid card for everyday purchases. However, it’s important to note that Moon is limited to US residents and doesn’t offer as much control over spending limits as other options.
6. Apple Pay and PayPal
For those who prefer convenience and widely accepted options, Apple Pay and PayPal are excellent choices. These platforms allow you to use your existing credit cards securely. When you use Apple Pay, your real credit card number is hidden, providing an extra level of security. However, these options do not allow you to create additional virtual cards or set specific spending limits.
7. Physical banks
Some traditional banks also offer virtual credit card options. Although features may be limited, they are generally free and require no additional KYC requirements. However, few banks offer this service and control over spending limits can be restricted.
Frequently asked questions
1. Will opening virtual credit card accounts hurt my credit score?
In most cases, virtual credit card accounts do not impact your credit score because they are often debit or prepaid cards. However, some virtual credit cards, like Klutch, can pull your credit after approval.
2. Will using virtual credit cards affect my points or miles programs?
It depends on the service you choose. If you add your credit card to Apple Pay for your purchases, you can still earn points or miles. However, if you top up a prepaid card with your bank account or debit card, you will not be able to earn any points or miles.
3. Can I return items purchased with virtual credit cards?
Yes, every service that lets you create virtual credit cards also lets you accept returns. Even if you close the virtual card, you can still receive refunds to that same card number.
4. Are virtual credit cards safe?
While any service always carries a certain level of risk, virtual credit cards provide additional security by hiding your real credit card number. By using virtual cards, you minimize the risks of your credit card information being stored on different company servers.
If you have any further questions or would like to learn how to set up and use a virtual card, leave a comment below. Check the item description for links to the services mentioned.
Remember, by using virtual credit cards you can protect your financial data and shop online with peace of mind.