An exclusive insight into paying with virtual cards
At ScribePay we have years of experience in the payments industry, in fact one of our co-founders was part of the team which invented the first virtual card, for business-to-business transactions used for managing employee expenses and reconciliation.
What is a virtual card?
Virtual cards work on the same principle as the physical cards in your wallet. They have a 16 digit card number, expiry date and a CVV2 number. The only difference is that a virtual card is not in a physical form and can only be used for online and in-app transactions. Virtual cards also have enhanced privacy features and protect your account details from the vendor.
Why use a virtual card?
Virtual cards add an additional layer of security for a transaction. They help to protect against fraud thanks to the additional rules which can be assigned to them. Using a virtual card enables the user to lock the amount a vendor can charge, lock the card to a specific vendor, and cancel the card anytime. This means if the card details get into unscrupulous hands, the customer is protected against fraudulent transactions.
The total value of annual fraud losses for UK-issued debit and credit cards reached a value of £620 million in 2019. A significant proportion of the losses came from “card not present transactions” where the cardholder isn’t physically present, and the payment is made online or over the phone.
Bringing virtual cards to consumers is relatively new. With more people shopping online and concerns around security, consumers want a way to protect their everyday accounts. Using a virtual card allows them to protect their main accounts, encase of a security breach or issue on the vendor side.
No one would have anticipated the growth in subscription services, with most everyday items now offered through a subscription. With this growth comes typical concerns, as Continuous Payment Authorisations (CPA) set up for subscriptions give the power to the vendor to manage subscription payments. Read our blog article on CPA’s here. This is worrisome as by trusting the vendor with their finances, consumers open themselves up to potential issues and even fraud. They may end up paying for unwanted transactions, or fall into subscription traps, and have difficulties with cancelling their subscriptions.
With ScribePay, you can order up to 12 virtual cards at a time to better manage your subscription services and recurring payments. ScribePay uses a different card for each subscription and allows you to set spending alerts and limits. Separating your recurring payments, with ScribePay virtual cards, improves your visibility over your payments. Unwanted transactions and free trials can be easily identified and cancelled with a swipe.
How Do I Get a Virtual Card?
To get a ScribePay virtual card for your subscriptions or recurring payments join our waiting list. Once we launch, you will be the first to know and you can be part of our beta launch.
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