Virtual cards vs. ghost cards: Learn the differences (2024)

FAQs

Virtual cards vs. ghost cards: Learn the differences? ›

Virtual cards use unique, one-time-use tokens, so they should provide better protection against fraud. Ghost cards have established credit limits for goods, services, or invoice payments and are provided to vendors with a credit limit established.

They're similar to virtual cards in that they don't exist in a physical, plastic card form. However, whereas virtual cards tend to be created to make a single purchase to a specific vendor, ghost cards can be used repeatedly as a non-cash payment method for various business expenses.

Physical credit cards may be preferred by those who value the tangible nature of transactions and are accustomed to traditional payment methods. However, for individuals who embrace the digital age and prioritize security, accessibility, and eco-friendliness, virtual credit cards may be the better option.

Ghost credit card numbers and ghost debit card numbers are used by larger companies that need to track expenses by the department or to give them to specific suppliers with which they complete a high volume of transactions. P-cards are given to specific employees to make purchases over time for a set duration.

The difference between virtual, digital and disposable cards

A virtual card is stored on your phone and can be used to pay in stores or online. It has its own unique card number, expiry date, and CVC. A digital card is a copy of your physical bank card that's stored on your phone.

A ghost card is a type of credit or debit card that allows you to assign different card numbers to different departments within your organization. The individual numbers allow the departments to make authorized purchases for your company, but the numbers themselves are not usable by either internal or external thieves.

Traditional credit cards offer convenience and rewards but come with higher interest rates and are more susceptible to fraud. On the other hand, virtual credit cards offer added security and the ability to set spending limits but may be less widely accepted and may come with additional fees.

The biggest drawback of using virtual cards is that they're only suitable for purchases made online. You can't use them at an ATM to withdraw cash as you could with a normal debit card, either.

A virtual card is not a physical, plastic card. Instead, it is a set of sixteen digits similar to a credit card number together with a CVV code that is randomly generated using software.

Yes, the virtual card allows you to withdraw cash from ATMs that support contactless use. You will need a digital wallet (e.g. Apple Pay, Google Pay) and second, a virtual card PIN code, which you will find on the LHV mobile app or internet bank.

What does a ghost card look like? ›

A ghost card is a credit card that a company assigns to a specific department or designates for payments to a specific vendor. Ghost cards today are often digital, with no physical card, instead using a generated 16-digit card number.

A virtual card can be likened to a p-card in that there's an original master credit card. Unlike a p-card, virtual cards exist—well, virtually. A virtual card only exists in its 16-digit form and it can be created with a click of a mouse.

Therefore, if one spends their cards winning the game before the opponent can spend their own, they have gained virtual card advantage in the process.

When you use a virtual card to make a purchase, the app replaces your physical card number with a unique virtual card number. When you check out, the virtual number hides your personal payment details and helps to protect you against fraud. You can use your virtual card for online or in-app purchases.

In addition to more effective controls, virtual cards can offer enhanced security features, including: Single-use authorization: Virtual cards can be authorized for a single transaction up to a preset limit, reducing the exposure of sensitive financial data to breaches, fraud or misuse.

Virtual credit cards are digital credit cards that function like physical credit cards—but without the plastic. Rather than providing the same card number to multiple vendors, companies can limit their exposure to potential fraud by generating different 16-digit card numbers and expiration dates for each transaction.

Digital gift cards can generally be used for both online and in-store purchases, giving the recipient more flexibility. On the other hand, virtual gift cards are typically limited to online use, as they are specifically designed for specific websites or platforms.

They can also be programmed for single use, automatically deactivating after the first transaction. These rules offer extra fraud protection compared to a regular credit card. Unlike physical credit cards, virtual cards can't be stolen or lost.