The difference between a physical debit card and a virtual debit card
Communication Team
Communication Team

November 15, 2022


The difference between a physical debit card and a virtual debit card

Most virtual cards work like physical debit cards, with your bank providing the funds and the virtual card company processing the transaction. The main differences are that a virtual card is not associated with any particular bank account, so you can use it at any store that accepts debit cards, and there's no need to carry around a physical card or wait for an ATM withdrawal to take money out of your checking account.

With these advancements, businesses have been loving what virtual debit cards offer for organising their regular operations and have become famous across Europe.

According to Future Market Insights, virtual cards will generate $338 billion in sales in 2021. In the period between 2022 and 2032, the virtual card market is projected to reach a total value of US$ 1.3 Tn, with an annual growth rate of 12.2%.

Technological advancements have accentuated the banking security and transaction delivery control benefits of virtual cards. The new breed of virtual cards is designed to meet the strict security standards demanded by online and mobile banking platforms.

Virtual Debit Cards vs Physical Debit Cards?

If you are puzzled about the difference between a physical debit card and a virtual debit card, rest assured that their function is largely the same. A physical debit card allows users to spend money by drawing on funds that have been added to a checking account by depositing cash or transferring money from another bank account. If you want to make an in-person payment or need to withdraw cash, then physical debit cards are what you need. However, that's the only advantage of having a physical card over a virtual card. In almost every other way, a virtual debit card is a better choice.

Advantages of using virtual debit cards

1) Safety:

Virtual debit cards come with an extra layer of security as there are no chances of losing or stealing a card that has no material existence! All transactions are carried out through secure networks, and your personal details are never shared with any third party. This helps to keep your personal information and funds safe from cyber-attacks.

Let's understand this through an example: wamo, a holistic financial management platform that offers both, virtual and physical debit cards. While with physical debit cards, you cannot assign a unique card number to vendors, with virtual debit cards you can. This allows you to easily track your spending and transactions and keep a record of the funds allocated for specific purposes.

2) Ease of use

With no need for a physical card or bank account, virtual debit cards offer added convenience when spending money at retailers. You can also check your balance and transaction history as easily as you can with any physical card.

3) Worldwide usage

Virtual debit cards are accepted practically anywhere where Visa or Mastercard is accepted, so you can use them to spend money online or in physical stores around the world. With wamo’s virtual cards, you can even make payments in multiple currencies from your EUR or GBP sub-accounts, which is handy if you travel frequently for business purposes.

4) Control

Controlling your financial transactions is the key to efficient business. Some physical cards offer limit settings. Prepaid cards, for instance, are prepaid debit cards preloaded with money but unconnected to a bank account. Although prepaid cards can be limited for initial deposits and reloads, similar to virtual cards, they offer fewer options and no automation benefits. With virtual cards, there is no need to worry about such limits as transactions are automatically processed within preset amounts. It is possible to limit virtual expenses, expiration dates, and usage to prevent overspending, auto-renewals, and discrepancies.

For example, you can set a budget of £500/day for your marketing expenses, and any spending over that amount will be automatically declined. How to get a virtual debit card online with wamo

Thanks to wamo, getting your virtual card is straightforward and easy. The holistic financial management platform is specifically designed for the financial requirements of small and mid-sized business owners. With its intuitive user interface, wamo makes it easy for you to set up your virtual card instantly and get started with spending. Additionally, the company enables you to get access to up to 10 virtual debit cards (more on request) that let you manage your finances in an efficient and secure manner.

The best about this is that you get all instant virtual cards fee-free, which comes under their Grow or Scale monthly plans. So, you don't have to worry about any additional fees or surprising bills.

All you need to do is register for a business account made for running an international business and it takes just 10 minutes to get started. Once you register, your application will be processed within 24 hours.

In addition to the virtual debit cards, wamo’s account allows you to hold multiple currencies, manage sub-accounts, onboard team members, generate unique QR codes for your business and basically manage all your financial aspects in a single place. Plus, the platform offers 24/7 customer support, so you can always be sure that you're in good hands.

Read: How can I reach wamo customer services?

To get set up with wamo, download the wamo business app from Google Play or the App Store, submit your required documents, open a business account and get started with your virtual debit card right away! It’s that easy.

Wamo.Io LTD incorporated and registered in the United Kingdom under the company registration number 12352849 and the operational office of which is at WeWork, 199 Bishopgate, London EC2M 3TY. Wamo.Io LTD (Firm Reference Number 922901) is an EMD agent of PayrNet Ltd which is an Electronic Money Institution authorised by the FCA under the Electronic Money Regulations 2011 (EMR’s) with Firm Reference Number 900594.

Wamo Solutions Ltd is registered under the Laws of Malta with company registration number C97355 and registered office at Dragonara Business Centre, 5th Floor, Dragonara Road, St. Julians STJ 3141, Malta. Wamo Solutions Ltd is an EMD agent of UAB “PAYRNET” which is authorised by the Bank of Lithuania under the Law on Electronic Money and Electronic Money Institutions (authorization code LB001994, license reference 72).

The wamo card is issued pursuant to licence from Visa. UK issuance is conducted by PayrNet Ltd and EU issuance is conducted by UAB PayrNet. wamo operates the website and the app. wamo is not a bank, the current account is an e-money account. Issuance of Electronic Money and payment services is provided by PayrNet Limited. The Financial Services Compensation Scheme does not cover electronic money products. No other compensation scheme exists to cover losses from your electronic money account. Your funds will be safeguarded in one or more segregated bank accounts with a regulated third party credit institution and not lent out, which gives you protection against insolvency, in accordance with the provisions of the Electronic Money Regulations 2011.

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