Experiences with virtual / prepaid credit cards?

Off-topic Chatter
1

Hi there,

I was wondering if anybody here has experiences or recommendations with any of the virtual / prepaid credit card services that are out there? (I’ve found MyCard2Go.com, Entropay.com, and Coinizy.com, among others.) I’d like to be able to make online purchases with a few sites that don’t accept PayPal, and I just don’t trust them to handle my credit card info securely. I also understand that there’s probably limited or zero purchase protection if I go this route, but for small things it might be a risk that I’m willing to take.

Thanks a lot!

2

As an alternative, why not just open up a separate credit card which is used exclusively for purchases like this? That would grant you to purchase protection and since it would be presumably low usage, you could immediately address it with the card if you noticed something.

I just have usage alerts turned on with all of my credit cards so I know the second there is a charge on them. I have no concerns with using my card anywhere because I would know immediately if it was used fraudulently.

3

Definitely a good option too, I just don’t like dealing with my bank or the credit card companies.

4

Check you bank
I have the option to make a virtual credit card in my online French bank account environment, set amount, time for it to be valid, click and a pic of a credit card with a nr and such pops up.
So maybe you already have this option, pop into your bank i’d say :slight_smile:

5

I use MBWay service. I don’t know if this is available in other countries, though!

Having a debit card (no credit cards!!!) with CVC number, I normally use this App/Service to create temporary credit cards - normally just for 1 purchase, but it can be configured for more purchases on 1 seller/company.

It has been good to shop in AliExpress, GBest, BGood and Amazon, no problems so far. The virtual cards created can also be used through PayPal instead the real credit/debit card.

As I said, it has proved to be safe, but I just don’t know if this is available in other countries!

6

Review virtual payment provider “Entropay UK”:
I have been using Entropay for several years now and never had a wrong charge on my actual account. Overall positive experience.

PRO:

- UK based

- Native English speakers for customer service (I’ll tell you why you need them in the CONS!)

- Authorised and regulated by the Financial Conduct Authority

- Charge-back possibility

- 5 cards in wallet

- Works to authenticate Paypal UK, Paypal Germany, Paypal Sweden (but does NOT verify account)

- Works with AliPay/AliExpress

- Works on most booking agency platforms (i.e. tried Expedia/Orbitz, trivago, Ryanair, …)

- Choice of currency for cards, however account-based (I don’t think you can multiple currencies on 1 account across multiple cards)

- You can use the virtual card for “reserved/confirmed travel bookings” without paying with the card (i.e. -> pay with cash at hotel) and your room will be held for you (use empty VCC for no-shows)

- Cards work for cross-border payments (tested physically in US, UK, Germany, Sweden, Spain)

- Green-lit for AVS mismatch (all billing addresses work!)

- Works with most government processors (i.e. visa fees, travel fees, eTA Canada)

- AFAIK service is compliant with AML, sanctions, KYC & PATRIOT act

  • New, easier user interface (website)
    EDIT: - you can delete and create new cards and credit card numbers (didn’t mention earlier because I thought this was a given)

CONS:

- Relatively complicated account verification process (requires real name, real address, real billing address, real cell phone number)

- If account gets locked down you need to provide copy of ID, copy of recent utility bill and proof of address;

- In order to be compliant with all banking regulations and to avoid fraud there is a good chance that your account will be locked-down (“restricted”). This happened to me at least 4x in the first year and in order to resolve this you need to contact customer service, provide documents, use exactly the same email address used for sign-up, and so on. It is very time-consuming, a hassle, but overall required by law. At the beginning there were various scenarios when I triggered the restriction by accident and the account no longer worked. Right when I needed to make a purchase and it was only resolved the next day.

- Relatively expensive charge-fee (approx. 5% charge fee from CC) so ideal for smaller purchases (LEDs, parts, …)

- You can only charge (top up) the cards with CC and bank account and not via Bitcoin or paypal or something else (at least for me)

- Not all funding sources and banks work (i.e. can top up with US accounts, UK accounts, but NOT a Swedish account)

- You can delete a virtual card and charge-backs from AliExpress or Paypal will go to the main card

- Does NOT work with merchants that require the physical payment card presentation (card present vs. cnp -> hotels, flights, but booking agencies work. Need to read small print and 1-2 backup credit cards for actual checking in/payment)

- Does not work with Alamo, National or SIXT (not tried any other agency)

- Expensive charge-back fee

  • transferring money between virtual cards incurs a very small fee
7

You could get a pre-paid, re-loadable Visa card. When you’re ready to use it, load the funds and go.

8

Doesn’t appear to be, but thanks anyway for mentioning it.

9

Thanks very much for the detailed review, I was looking at Entropay too.

10

Yeah, several users here have mentioned this. Sounds like a fantastic option, but unfortunately my bank doesn’t seem to offer them.

11

Hmmm, thanks for the tip. Could be an option. I would prefer something virtual and instant, but this might be an alternative.

12

I have just come back from USA holiday with the family and we used the Revolut card

https://www.revolut.com/?lang=en

This is a prepaid credit card which costs £5 then you use an app on your phone to transfer money to it which you can convert to any currency ( well lots) at the proper exchange rate not a bank rate. You can even lock the card via the app so it can’t be used then unlock when you want to spend on it.

I used all over Florida without any issues, and when it got declined I check balance on app ( empty) then added funds , converted to USD and bought the item ( Southern Comfort 100 proof 1.75 litre , yum yum) within 3 minutes.

It’s free to add money and swap money back to your bank. This will be my goto card for holidays abroad now.

13

For almost two decades I’ve been using an online virtual credit card service from my bank (Swedbank in Sweden). It has worked very well and given me an extra level of protection.

Nowadays there are so many services with recurring charges (Netflix etc.) that requires you to store credit card details with them. Having worked with computer security I DON’T feel comfortable with any company storing my credit card details.

Now my bank have decided to stop their virtual credit card service. So I’m also in search for a new online virtual credit card service.

14

Interesting, thanks for the tip. Is this a physical (plastic) card? Do they offer virtual card numbers too?

15

Yes it is a physical card that is prepaid so can’t spend more than you put on it.

16

Looking on the mobile site I can’t find a decent pricing overview.
What are the costs of paying with it for say AliExpress?
It sounds good, could mean stopping with our Dutch VISA and cutting out a Dutch bank account, making things easier.
But I do an average of one VISA payment per day so if each payment costs money it might not be a good idea.

17

There wasn’t any charges for using it simply add money to it in my local currency from my bank (UK£) then convert to currency of country I was in ( USA$) it tells you what the current rate is before swapping and how much you will get after swapping. Then I just spent it like it was my normal currency with no other charges.
It’s aimed at people who visit foreign countries a lot I’d guess.

I’d never recommend using mobile sites they always seem to suck in my opinion

18

Where do they earn their money from then?

19

Where do they earn their money from then?

20

1) the ” float ” (this is not only transfer time for the funds but also the fact consumers have, on average, a certain amount of unused fund in their accounts)
2) premium features & upsell
3) business customer upsell (i.e. ebay sellers and “digital nomads”/”the millennial” as a design target might be a great fit)
4) Interchange (as small as this might be, it adds up)
5) after establishing a relationship, credit features with interest
6) upselling insurance services (high profit margin)

They also seem to avoid “complicated” or expensive customer markets; briefly looked at their offering and I believe they don’t offer this to US consumers?
edit: apparently it works though

found this to be useful to explain how 4 party model fee structure works:

(the “service” would be the issuer)