Virtual Credit Cards

Paying With a Virtual Credit Card

To pay with a virtual credit card, you need a digital wallet to which you can connect your card. The most common digital wallets are Google Pay for Android and Apple Pay for iPhones. Samsung Pay is also available for Samsung devices, and a few banks also offer their own digital wallets.

Most digital wallets come pre-installed on smartphones but can also be downloaded from Google Play or the App Store. To set up your wallet, simply log in with your Google account, Apple ID, or bank credentials, then add your virtual card by entering its details. Once added, you can use your phone for payments with your now virtual credit card.

A digital credit card can not be used to swipe through a card reader. The card details are typed in or transmitted over digitally instead of a card machine reading them off the magnetic stripe or chip. When you make a purchase using your mobile phone, you simply tap or “flash” it at the payment terminal, and the card details are instantly transferred to complete the transaction. For this to be possible, NFC (near field communication) must be enabled. You activate this in your phone's settings. Paying with your mobile phone works on all card terminals that support contactless payments. If the card terminal does not support contactless payments, you cannot use a digital credit card on your mobile phone.

In summary, shopping with a virtual card is therefore basically the same as shopping with a physical card, the card details are just transferred digitally so you do not need to have the physical card itself.

Temporary Credit Cards

A real virtual or digital card, is not linked to any physical card. Companies that issue fully virtual cards often have an app where you can see an image of the card along with the card details. From this app, you can then connect the card to your digital wallet. One advantage of real virtual cards is that they can be made into disposable cards, or temporary cards. Temporary cards have unique card details that are only only valid for a single transaction. Since the card details can only be used once, they offer more security which can come in handy when you shop from a website you have never bought from before or from a less trustworthy website.

Process for getting a virtual debit card

Many of the completely virtual cards on the market are debit cards. These digital cards are available without a credit check making them accessible to a larger range of people, including those who might not qualify for a traditional credit card.. Many of the fully virtual cards are issued by foreign companies that do not use Bank-ID, making the application process a bit different from a Swedish credit card application.

The application process usually consist of the following steps:

• Download the card issuers app
• Take an image of yourself and submit it to the app
• Submit an image of a valid ID or your passport
• The images are compared to confirm your identity
• You may also need to verify your phone number and/or email by entering a one-time code sent to you

Once the application process is finished and approved, you can immediately start using your virtual debit card.

Two Popular Digital Debit Cards

Two popular card issuers that offer fully virtual cards, along with regular physical cards, are Revolut and Klarna.

Revolut has quickly become a popular bank worldwide. Revolut offers virtual cards in several different budget classes where the standard option is completely free. Revolut offers fully virtual temporary cards, which can be used for payments directly through the Revolut app. These cards automatically generate new card details after each transaction, ensuring maximum security for online payments.

Klarna has grown increasingly popular, offering flexible payment solutions. The Klarna Card can be used for both virtual and physical payments. Additionally, Klarna offers virtual temporary cards, which generate unique card details for each transaction, that can be used for both online and in-store purchases.

Free virtual credit cards

There are many free virtual credit cards, allowing you to pay digitally without any extra cost. The biggest advantage of choosing a free virtual credit card, aside from the fact that it is free, is that many come with generous perks, such as bonuses, cashback, discounts, and insurance coverage. These benefits apply regardless of if you make a payment using the physical or digital version of the card.

One example is Bank Norwegian, a free credit card that can be used virtually. Every purchase made with Bank Norwegian earns either bonus points or cashback.

How Safe Are Virtual Credit Cards?

Using a virtual credit card or debit card is a very safe and secure payment method. To authorize a transaction, biometric authentication is required, such as a fingerprint scanner (Touch ID) or facial recognition (Face ID) on your phone. For temporary cards, unique card details are generated for each transaction. This allows you to make purchases without exposing your actual card information.

Limitations For Cash Withdraws

A virtual credit card can usually not be used to withdraw cash from ATMs. This can be problematic if, for example, you want to make cash withdrawals abroad in order to pay with cash, or if you prefer to pay with cash even in everyday life.

Alternatives to Digital Credit Cards

Above we have described two different types of digital cards: the fully virtual ones and the virtual credit card copies that you can use through various mobile wallets such as Apple Pay, Google Pay and Samsung Pay.

A third option for those who do not have a digital credit card is to use payment services such as Klarna or Paypal. These platforms allow you to store your physical card details securely, so you do not have to enter them manually for each purchase.