Virtual credit cards with custom budget and date restrictions

For many, buying online is still a source of doubt, and they are right because we will often have to provide the details of our checking account or our card. To minimize the risk that comes with sharing our information, banks and other financial institutions have launched virtual cards. 

Virtual cards

When choosing a virtual (or prepaid) card, we will essentially find products that come from traditional banking entities or from fintech companies, many which function as mobile banks that cover the classic functions to a greater or lesser extent. 

Custom budget and date restrictions

Virtual cards give you complete control on custom budget settings and date restrictions. For example you can set a custom budget for a product or limit the date range for which your card is valid. Virtual cards can be used for SaaS Subscriptions and more.

Virtual cards vs classic cards

As the name suggests, virtual cards, unlike traditional cards, do not have a physical format. Even without that piece of plastic in the wallet, we will have the information that we usually find printed on it: our name, the number, expiration date and the security code. Exactly the same as physical cards. It will be precisely this data that we use in our online transactions.

As there is no physical card, we will not be able to pass it through the readers of physical stores … unless we link this card to payment platforms such as Apple Pay, Google Pay, and the like.

The key to virtual cards is that we are meant to manually load funds , indicating that these are limited and controlled. If I want to buy a Redmi Note 8 Pro on Aliexpress at a price of 173 euros , I would top up this amount prior to carrying out the transaction. That would be the maximum money I can spend, not one euro more, since they do not work on credit.

What to take into account when choosing a virtual card

As when we acquire any other financial product, it is essential to understand what the expenses derived from having a virtual card are. That is, the cost of hiring, maintenance and any commissions for carrying out operations.

However, it is worth asking our own bank, which on occasion offer virtual or prepaid cards priced according to respective statuses of clientele.

Among the options, we find some whose issuance and maintenance is free while others charge for their service. Similarly, there are virtual cards that allow unlimited recharges completely free.

As we are going to use these cards for purchases, it is important to know what the fund limit is and if there is a minimum transaction amount to be made. And if the idea is to make foreign purchases, we will also pay attention to whether there are levies on the currency exchange.

As with any other card, it is worth taking a look at the protection they offer: sending SMS, fraud coverage, insurance, etc., is something we usually find by reading the fine print of the contract.

A number of companies offer virtual credit card solutions. One such platform, NachoNacho, provides a highly secure and simple way to issue virtual credit cards, assign them for a specific subscription vendors and team member, and set custom budget and date restrictions. With NachoNacho, you can issue unlimited virtual credit cards (‘NachoCards’) at no cost. Unlike traditional credit card processes, there is no credit check required as these virtual cards work on a pay-as-you-go system, making payments directly from your existing balance. With NachoCards, you can track all your SaaS subscription expenses in real-time through a single dashboard.