Making the Safety-First Choice—Best Virtual Credit Card Providers Reviewed
The use of virtual cards has risen exponentially in the past few years, with the market size potentially hitting $37.5 billion by 2028. While virtual cards (and other contactless payment methods) grew significantly during the COVID-19 pandemic, the main reason behind their continued popularity is the protection they provide against card cloning, identity theft, and fraud—not to mention convenience.
Finding the best virtual credit card providers depends on your personal financial needs. There are many options on the market, but not all of them offer the same level of service, security, and features. In this guide, we will cover the criteria for choosing a virtual card provider and evaluate some of the best ones to help you make an informed decision.
Best Virtual Debit or Credit Card Providers—What To Look For
Virtual credit and debit cards have the same purpose, which is to protect your real card or bank information when completing transactions.
A virtual card is a digitally generated card number with an expiration date and security code. In some cases, transactions are sent through a secure tokenization process, which involves replacing actual card credentials with automatically generated values. The requested funds are drawn from your debit card or bank account without disclosing the real credentials to the merchant, providing a private and safe transaction.
Some financial institutions offer extra features that are similar to that of a virtual card. For example, some Citibank virtual credit cards can be used with a Virtual Account Number (VAN) that works in a similar way, and a Credit Karma virtual card can be used via a digital wallet like Google Pay™ or Apple Pay®. Other providers also have the option of a virtual credit card with instant approval, which could be a good option if you need quick access to funds.
When choosing a virtual card service provider, there are three main criteria to consider:
Another aspect to consider is the reputation and reliability of the virtual card provider—remember to check out the customer reviews to confirm the trustworthiness and efficiency of a particular service.
Having a basic understanding of the different types of virtual payment options available will help ensure that you get exactly what you need for your needs. For example, a temporary debit card may be issued to you to use while you wait for your physical card to arrive; but this may not have the same functionalities and benefits as a virtual card.
Source: Marcial Comeron
Best Virtual Card Service for You—Explore the Top 3 Solutions
The following three virtual card providers are a few reliable options on the market according to the criteria provided above. Take a look at the summary of their services, followed by a concise review of each provider:
The information in the reviews is current as of June 2023.
Revolut—A Global Virtual Card Service
Revolut is a U.K.-based neobank and fintech company offering Mastercard® virtual cards to its users. Users can pay with the card internationally and also opt to be billed in 150+ local currencies[1]. The service can be accessed by opening an app-based account.
Features and Ease of Use
Revolut virtual cards can be used for online or in-store payments, provided the stores support contactless payments. The cards can be added to digital wallets like Apple Pay and Google Pay for payments at physical locations.
Revolut users can order up to five active virtual cards[2] in their personal or business account at a time. The service comes with features such as:
- Creating disposable cards[1]
- Setting spending limits[1]
- Freezing cards[1] (useful for declining unwanted payments)
Know that Revolut currently allows funding through direct bank transfers or debit and prepaid cards[3]. Credit card top-ups, where users can add more money to their balance to cover future payments, were discontinued after 8th July 2022.
Security
Revolut uses multiple security measures to keep their customers’ funds safe, including:
- Keeping the money in regulated banks[4]
- Reviewing and flagging suspicious payments[5]
- Asking for additional PIN or biometrics verification in case of suspicious activity[5]
Source: Ivan Samkov
Pricing
Revolut offers one virtual card for free and then charges $4.99 for every additional card[6]. The platform may charge a fee of up to 3% of the transaction value[6].
Check out the pros and cons of Revolut:
Capital One—Virtual Credit Cards With Merchant-Locking Feature
Capital One offers virtual card service to its customers through the Eno® browser extension or Capital One app, both designed to help facilitate secure online transactions[7].
Features and Ease of Use
Capital One virtual credit card numbers are available to users with eligible credit cards from the issuer[8]. To generate virtual card numbers, the user must install the Capital One app or Eno browser extension, verify their identity, and register their credit card[9]. Once registered, Eno will use the card as a funding source for all the purchases made with virtual card numbers[8].
A Capital One virtual card can be locked to a specific merchant[8], which means it can be used at one specific vendor and nowhere else. The merchant-locking feature minimizes the chances of the card being misused by a potential hacker. Users can set up virtual cards for as many merchants as they like, but no more than 20 per day[8].
In terms of functionality, the Eno browser extension offers multiple features for using and managing virtual cards, such as:
- Saving existing virtual card numbers[8]
- Locking or deleting existing virtual cards[8]
- Viewing all active virtual cards in one place[10]
A potential drawback of Capital One virtual cards is that users have no option to set spending limits[8]. The maximum purchase amount is the credit limit of the associated credit card. On the bright side, users can earn cashback and points on their virtual cards depending on their credit card’s reward system[8].
Security
Capital One users can enable notifications every time their credit card account is used, which includes notifications about the virtual card activity. The issuer also sends fraud alerts for suspicious transactions[8].
Source: Anete Lusina
The Eno browser extension’s “Express Checkout” setting allows users to control the speed and security of their checkouts[8]. When toggled on, the extension allows users to instantly see all their virtual card numbers in one place. When the setting is disabled, the users are required to manually sign in before they can create a new virtual card via the Eno extension. In this case, the extension logs the users out after 20 minutes of inactivity to prevent unauthorized use.
Pricing
Users don’t have to pay additional fees to use Capital One virtual cards, but their credit card will typically have an annual membership fee or similar. The annual fee can be up to $395[11], although certain options (like student credit cards) have no such fee.
Here are the pros and cons of Capital One virtual cards:
Privacy—Secure Virtual Cards With Convenient Control Features
Privacy offers an instantaneous virtual card service with a focus on user convenience and safety. The BBB®-accredited company has been featured in Forbes’ list of the top 100 most consumer-centric companies of 2022.
Privacy Virtual Cards are either Visa® or Mastercard® and can be used at most vendors that accept U.S. credit or debit card payments.
Features and Ease of Use
Privacy offers Merchant-Locked and Single-Use Cards that enhance the security aspect of virtual cards.
Privacy’s Merchant-Locked cards facilitate:
- Subscriptions and recurring purchases
- Protection from breaches and fraudsters
- Frequent shopping on e-commerce websites
In the unfortunate case of a data breach on the merchant’s website, the merchant-locking feature ensures your virtual card number cannot be used elsewhere.
Privacy also offers Single-Use Cards that close after each transaction. They are convenient for shopping on websites you haven't used before or have security concerns about. These cards automatically close as soon as the first transaction goes through. In case a data breach happens and your card number is stolen, potential hackers won’t be able to use it afterwards.
Source: cottonbro studio
Privacy provides a host of features to enhance the user experience and provide greater financial control. Check out some of the benefits of Privacy:
- Browser extensions for fast and easy checkout—Privacy has introduced browser extensions for Google Chrome and Firefox to make your online shopping quick and easy. The free add-ons make checkout faster by auto-filling secure card numbers directly into the designated fields, so you don’t need to search for your wallet or memorize card numbers.
- Spending limits—You can set spending limits for each card you create, enabling you to keep your expenses under control. For example, if a streaming service is $5/month, you can set a card limit to $5. In case the merchant accidentally double charges you or attempts to sneak an overcharge, the virtual card will automatically decline the transaction.
- Easy card management—All your Privacy Cards can be closed, paused, or unpaused with a single click. The pausing/unpausing option is especially useful in case of unwanted subscriptions as the merchant won't be able to charge you without access to your bank account. Note that you should still reach out to the merchant to cancel your subscription.
- Full-featured mobile apps—Privacy users can access their accounts via any browser or an Android/iOS app. The mobile app enables seamless card generation and management wherever you are.
Privacy Accounts are linked to the user’s debit card or bank account. Here’s how to get started:
- Sign up for a Privacy account
- Provide the mandated know your customer (KYC) and funding details
- Request and start creating Privacy Cards
Security
Privacy is transparent about its security standards and compliance requirements. Like banks, Privacy has to adhere to Payment Card Industry (PCI) compliance. To be PCI compliant Privacy is required to:
- Install and maintain a firewall configuration
- Use encryption while transmitting data
- Protect stored cardholder data
- Regularly test and monitor systems
Privacy also goes through SOC 2 Type II compliance audits to establish the integrity of its information security controls. The platform has additional security measures for virtual cards and keeps a robust internal fraud detection system.
Privacy mobile app users get real-time notifications on account activities. Other security features include:
- Two-factor authentication (2FA)
- Time-based one-time password (TOTP)
Pricing
Privacy offers multiple plans. The Personal plan is free for domestic transactions and currently allows users to create up to 12 new virtual cards every month. The paid plans start at $10/month and offer benefits like cashback and additional card creates to meet your needs.
Here are the pros and cons of Privacy:
References
[1] Revolut. https://www.revolut.com/en-US/cards/, sourced May 2023
[2] Revolut Contributor. https://blog.revolut.com/a/virtual-card/, July 5, 2020
[3] Ascen. https://capturetheatlas.com/revolut-card/, November 7, 2022
[4] Revolut. https://www.revolut.com/how-we-keep-your-money-safe/, sourced May 2023
[5] Revolut. https://www.revolut.com/security/, sourced May 2023
[6] Revolut. https://www.revolut.com/en-US/legal/standard-fees/, sourced May 2023
[7] Capital One. https://www.capitalone.com/learn-grow/money-management/virtual-cards-shopping-online/, June 23, 2022
[8] Capital One. https://www.capitalone.com/digital/eno/virtual-card-numbers/help/, sourced June 2023
[9] Capital One. https://www.capitalone.com/digital/eno/virtual-card-numbers/setup/, sourced June 2023
[10] Capital One. https://www.capitalone.com/digital/eno/virtual-card-numbers/, sourced June 2023
[11] Capital One. https://www.capitalone.com/credit-cards/compare/, sourced June 2023
Other Virtual Card Resources to Help Find Your Fit
Here are some guides about how virtual cards work and the different offerings from specific banks and financial service providers.
