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Every Innovator Business Checking account or Accelerator Startup Checking account comes equipped with instant-issue virtual debit cards. These cards allow for convenient in-person contactless payments or online purchases. Your virtual debit card even has the potential to earn you 1% cashback on online and in-store signature based purchases.

Here, we’ve provided an overview of how virtual debit cards work, so that you can feel more confident using them for your business purchases.

What is a virtual debit card?

Just like it sounds, a virtual debit card is like your physical debit card, only it’s completely digital. This card is linked to your bank account, but uses a unique digital number. Your virtual debit card is primarily managed through online banking, but can also be kept in a digital wallet on your mobile device.

How do virtual debit cards work?

To make a purchase using a virtual debit card, simply use the unique details of your virtual card (typically stored on your device or browser) instead of inputting the numbers from your physical card. These details are processed securely by the payment system, and the transaction is completed using your available funds. 

Like your physical credit card, a virtual credit card can be used both online and in stores. However, to use your virtual credit card in stores, you’ll need to add it to your digital wallet. Some stores may not be equipped to allow purchases via digital or mobile wallet, so that’s a potential limitation of virtual cards.

Virtual credit cards provide an extra layer of security by generating unique card numbers for each transaction, protecting your actual card information. In contrast, traditional credit cards use the same card number for all transactions, which could make them more vulnerable to fraud. 

What are the benefits of using virtual cards?

Virtual cards have become an increasingly popular form of payment, and for good reason! Using a virtual debit card rather than a physical card has several advantages, including:

  • Convenience: You don’t need to wait for a virtual card – once you’ve been approved, you can start using a virtual card instantly. Virtual cards are available 24/7 through online platforms.
  • Security: Since they are fully digital, virtual cards cannot be lost or stolen. This makes them more secure than a physical card. Virtual debit cards also provide an extra layer of security by generating a unique card number for each transaction. This way, you’re able to better protect your actual card information.
  • Team access: With unlimited virtual cards, you can easily share account access with other members of your business. Unlike with physical debit cards, you don’t have to worry about keeping track of misplaced cards when distributing them to team members. 
  • Control: Virtual debit cards can be easily managed through your online banking platform. You can apply custom limits on spending and usage to reduce the risk of overspending and keep your team on budget.

Bottom Line

Virtual debit cards are a great resource for any small business owner or startup founder. With the added security and convenience, these cards can help to make business transactions a more seamless experience!

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