Virtual prepaid cards are becoming increasingly popular among users of digital financial tools. Where can they be used? Why are they not accepted by all services? How do they differ from credit cards, and why do they exist in the first place? In this article, we’ll explore these questions to understand the opportunities that virtual prepaid cards offer and the potential limitations you may encounter.
What are virtual prepaid cards and why do you need one?
A prepaid card is a payment tool that is loaded with a set amount of money in advance. Unlike credit cards, there is no option to go into debt or borrow from a bank. Users can only spend the amount that has been preloaded onto the card.
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These cards are particularly convenient for online payments as they do not require linking to a primary bank account. This reduces the risk of data leaks and simplifies financial management. Financial services like PSTNET offer virtual Visa prepaid cards with flexible top-up options and expense control features.
The platform’s virtual cards operate on the Visa payment network, making them a universal tool for global shopping. To top up a card, users must first deposit funds into their account and then transfer the desired amount onto the card.
How do virtual prepaid cards differ from credit cards?
The difference between these two financial tools goes beyond just the top-up process. Credit cards are linked to a bank and come with a credit limit. The money technically belongs to the bank, and the customer is required to repay it. A prepaid card, on the other hand, is preloaded with funds, has no debt obligations, and does not require a credit check.
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Why would you need a virtual prepaid card?
Online shopping & Marketplaces
These cards are compatible with platforms that accept Visa, making them ideal for shopping on sites like Amazon, eBay, AliExpress, and other online stores. However, certain merchants check the BIN number of a card, and if it is associated with a prepaid product, the payment could be rejected. To prevent potential issues, it is recommended to perform a test transaction with a small amount first.
Subscription services
Streaming and digital content platforms like Netflix, Spotify, and YouTube Premium often accept virtual cards. However, not all services allow prepaid products for automatic recurring payments. In such cases, subscriptions can be renewed manually.
Gaming platforms & Digital goods
Virtual prepaid cards are suitable for purchasing games and in-game content from PlayStation Store, Steam, Xbox Store, and Nintendo eShop. Some platforms may require a linked bank account, so it’s essential to check payment terms beforehand.
Business & Work-related services
To avoid common accounting mistakes, freelancers often use virtual cards to pay for work-related tools and services, such as cloud storage, domain registration, and subscriptions to professional platforms. Companies like Google Cloud, AWS, and DigitalOcean accept these cards.
Conclusion
Virtual prepaid cards are a convenient tool for making online payments. They enhance transaction security and allow users to manage expenses more effectively. However, it is essential to be aware of service-specific limitations to prevent payment issues. When choosing a card provider, consider supported currencies, top-up methods, and security features to ensure the best experience.