With online shopping becoming increasingly popular, new technology is arising to support customers without access to traditional payment methods. By supporting a multitude of payment methods, merchants open themselves up to more customers, and ultimately, higher profits. One such method of payment is virtual debit cards, which are becoming increasingly popular.

A virtual debit card is exactly that – the physical card does not exist. You receive all the normal card details (such as the card number, security code and expiry date) via email or at the providers website. You then fund the card through a variety of different methods (depending on the provider), and can use the card details to make purchases online. Most providers support funding via ACH (check), wire and credit card.

The main market for virtual debit cards are people who do not have access to a credit card and wish to purchase items online. However, virtual debit cards can be a good tool to protect oneself from fraud. Unlike a credit card, the only money at risk is the money you put on the debit card. Should a fraudster gain access to your virtual debit card details they can only spend what is on the card, whereas if it were your credit card then you are at risk of them spending the banks money and leaving you in debt.

It’s important when getting a virtual debit card to compare rates between providers. Often times the card may look cheap on the surface, but certain fees actually make it more expensive in the long run. Which virtual card will be best for you will depend on individual factors, like how often you use the card and how often you load funds onto it.