Small Business

What is a Virtual Debit Card?

Posted on: March 9, 2010

A virtual debit card, essentially, is an electronic version of a debit card that allows you to send money and pay for things online and over the phone. Most virtual debit cards have a physical card that the user carries, but they are not associated with PIN numbers, which makes them almost useless for physical point-of-sale transactions. These cards are the peak of the electronic age, offering electronic banking, payments, transfers, and authorizations, completely taking the paperwork and hassle out of banking for customers that have a virtual debit card.

If you’re looking for a faster, more convenient and efficient way to send money, pay bills, or manage your expenses, a virtual debit card can be a great solution. Especially if most of your banking and spending is done online or over the phone, virtual debit cards are a great option. They’re more difficult to get information from, and many times the amount of money you have is limited, so that you are less vulnerable to identity theft and stolen cards. These cards are usually prepaid and authorized by using the card number and the CVV2 number. The CVV2 is that tiny, three digit number on the back of your card, right next to the signature box.

Some stores will accept these cards as a debit, because they can input the card number and the CVV2 code for authorization. It works similar to a card-not-swiped, or CNS transaction, which many stores don’t allow. Grocery stores are among the most popular places that will accept these cards without a pin number. When you order a virtual debit card, you can be sure that you’ll be protected, because like a pin number, the CVV2 code is sent separately from the card, and isn’t embossed on the card itself. This will also help if your card gets stolen, because the thief won’t have the number that they need to use the card, making it impossible for them to use.

Virtual debit card users like the cards because they offer better money management options and doesn’t require them to use the money that they have in their checking account or on credit cards. Also, there are people who cannot get credit cards or checking accounts, for whom the virtual debit card is a great answer to their problems. There are a few drawbacks to this type of card, but if you aren’t worried about having a typical debit card, you’ll be fine.

Get a virtual debit card to use online, visit Spendone for further information.


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