What is a Virtual Card (VCC)?
Posted by Checkbook on Jun 02, 2020
Let’s imagine you are the principal of a high school. One of the math teachers wants to have a math themed party to celebrate pi day with her students and asks for a budget to do so.
You could ask her to save all her receipts to later be reimbursed, or even give her your school credit card to use and return. Better yet however, you could give her a virtual card.
With a virtual card, you can create temporary extensions of a pre existing credit card. This virtual card will have its own distinct set of numbers, expiration date, and security code. This is all designed to keep the original credit card as secure as possible. This card will even look like a regular credit card, except it’s on your screen, for easier access and use.
With VCC technology, the principal could create a virtual card that expires in a week with a limit of $75 to give to the math teacher. The math teacher could then take this card and buy supplies online, or at any store where credit card information can be keyed in (or sent via services like Apple Wallet).
At the end of the month, the principal’s credit card statement would look like he had made those $75 worth of purchases (assuming the teacher used the full $75 limit).
So why bother having a virtual card? In our example, a virtual card makes life a lot easier for the principal and teacher. The teacher doesn’t have to put expenses on her own card and wait to be reimbursed, while the principal doesn’t have to give away his only credit card. The principal doesn’t have to inundate the school’s accountants with issuing refund checks either.
Virtual cards make it easy for companies or individuals to share access to credit cards with multiple people. The best part is you decide who you share with and how much money any one person gets to spend in any period of time.
Here at Checkbook, we believe you should have the power to choose how you cash out when you get paid. When you receive a Digital Check in your email inbox sent through Checkbook, not only can you instantly transfer that money to your bank account, print out a paper check, or even have the check sent to you in the mail, but you can also elect to push your funds onto a new virtual card.
Whatever your use case might be for a virtual card, rest assured that Checkbook is here to help you transact your money, your way.
About Author: The Checkbook Team
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