Prepaid virtual credit card Australia: If you are not comfortable using your credit card or debit card online but have no choice but to do your transactions online, then worry no more. You can opt for a Prepaid virtual credit card and use it for your transactions without the pressure of being misused by anyone.
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What Is a Prepaid Virtual Credit Card?
A prepaid virtual credit card is a type of disposable virtual card used for secure online purchases. Like a physical prepaid credit card, this virtual version has a 16-digit card number, expiry date, and CVV and is valid for various online purchases.
This means your banking information is 100% secure Even in the event of a data breach or hack of an online seller, your personal information will be protected. On the other hand, it means that you need to transfer funds from your bank account to prepaid VCC.
With this in mind, be careful not to put any money into it as the expiry date approaches. If there is some balance left on the card, the card issuer will not be able to return the funds to your bank account after the VCC expires. So, plan your online shopping ahead of time, and don’t transfer more money than you want to spend.
How to open a prepaid virtual credit card account
Prepaid virtual credit cards work differently than your physical credit card. Therefore, to be able to use your prepaid virtual credit card, you need to transfer a certain amount from your original credit card or online money transfer service.
- You will need some funds on your new prepaid virtual card to be able to make payments
- Your card issuing company may set a minimum balance requirement for opening a prepaid virtual account
When you order a virtual prepaid card, it is usually sent to you by email. You may not be surprised if your issuer sets the maximum possible balance, so be sure to check this before continuing to fund your prepaid virtual card.
Another thing to note is that the issuer may charge you a card activation fee. The higher the initial amount, the higher the activation fee. Depending on the issuer, you may have to pay a monthly fee to keep the card active.
Types of Prepaid Virtual Credit Cards
Prepaid virtual credit cards can be divided into two categories based on their features. You should do some research about them and find out what they offer to be able to choose the most convenient solution for your particular situation. Here are your options:
Reloadable Virtual Credit Card
If the issuing company allows you to reload your prepaid card for specific future purchases, you have a reloadable card. Depending on the company, the amount of future reloads may be limited from the start, so be sure to ask about this rule right away. Reloadable prepaid virtual credit cards are best used when you plan to make regular payments for subscriptions. One thing you should be aware of when choosing one type or the other is that fees for reloadable cards are usually a bit higher than for single-use cards.
As the name suggests, single-use prepaid virtual credit cards are used for single purchases. If you don’t plan to use this card in the future, this is the safest option. If you think you’ll need it regularly again, you can always get a reloadable card.
Single-use virtual credit cards typically have limited purchase amounts, but the good news is that there are no purchase transactions or monthly fees. Another common limit relates to the number of active cards allowed per user. This number depends on the issuing company you choose, so make sure you ask them specifically about their rules.
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