Virtual prepaid cards are a tool used to pay for purchases online. They function like regular bank cards but exist only in digital form. They have a card number, expiry date, and CVV code — but no physical carrier.
These cards are issued not by banks but by financial platforms. They are connected to international payment systems — Visa, MasterCard, or UnionPay. These cards are suitable for payments in US dollars, euros, and other currencies.
In this article, we explain how virtual prepaid cards work, how they differ from debit and credit cards, what they are used for, and how to choose the right one.
What is a virtual prepaid card?
It is a card with a preloaded amount. It can be used to pay for goods and services. It only works online. You can top it up with a fixed amount — for example, 100 or 500 dollars. Afterwards, the money is deducted from each purchase. When the funds are exhausted, the card is blocked or requires a new top-up.
The main advantage of a prepaid card online is that it isn’t directly linked to a bank account. This significantly lowers the risk in case of a data breach: even if a fraudster gains access to the card details, they won’t be able to spend more than the amount already loaded onto the card.
How it differs from a debit or credit card
A debit card has an account. The money on it is your own. A credit card works using borrowed funds, which then need to be repaid. A prepaid card is a third category. It does not require an account, does not involve credit, and it cannot go into the negative.
Simply put: you load 100 dollars — that means you can spend only 100. No more, no less.
What virtual prepaid cards are used for
- Secure online payments
This is the primary use case. People use such cards to pay in online shops, subscription services, and advertising platforms. Even if the website turns out to be unreliable, the risk is limited to the amount on the card.
- Online advertising
Marketers use virtual prepaid cards to pay in advertising systems — Meta, Google, TikTok. This is convenient: a separate card can be issued for each campaign, allowing expense control.
- Purchases abroad
These cards can be issued in the desired currency — most often in US dollars. This simplifies payment in foreign online shops. There is no need to spend money on currency conversion.
- Family and corporate expenses
Parents can issue a card for a child and load a fixed amount. Businesses can distribute cards among departments or employees to manage budgets.
How a prepaid card works internally
At the payment system level, the card is no different from an ordinary one. It has a BIN — the first six digits of the number. These indicate the issuer, country, and card type. Then comes the individual card number, expiry date, and CVV code.
The card is created in the personal account of the financial service. Top-ups are also carried out there. Typically, money is transferred from a crypto wallet, bank account, or via an aggregator. Some services accept only cryptocurrency — for example, USDT. Others allow card payments.
Once topped up, the card is activated. It is immediately ready for use. It can be linked to PayPal, Google Pay, or Apple Pay. It can be used to pay for ads, subscriptions, tickets, hosting — any digital service.
Where virtual cards are issued
Prepaid cards are issued not by banks, but by financial services. They gain access to BINs through partnerships with payment systems or licensed banks. In practice, this works through white-label platforms: the service rents a BIN, issues cards, provides an interface, and offers support.
There are many such services. They differ in terms of conditions, fees, currencies, support, and top-up methods. Below are the criteria to consider when choosing.
How to choose a virtual prepaid card
1. Card currency
If you pay in US dollars, the card must be in dollars. Otherwise, you will incur conversion losses.
2. Fees
Check how much is charged for issuance, maintenance, top-up, conversion, and spending. Some services promise free issuance but charge up to 6% for top-ups.
3. 3D Secure support
This is a mandatory requirement for many services. Without 3D Secure, you will not be able to pay for Facebook ads or purchases in the Apple Store. Check in advance whether the protocol is active.
4. BIN geography
Some websites accept only cards issued in the US. Others — only European ones. BIN selection affects transaction success. Check which BINs the platform uses.
5. Availability of an app and personal account
This is convenient: you can issue a card in 30 seconds, top it up with one click, and track your expenses. Without a proper interface, it’s inconvenient.
6. Reviews and support
Check what other users say. How quickly does support respond? Does it operate 24/7? If your money is stuck, it won’t be possible to solve the issue via a chatbot.
7. Number of cards per account
For businesses, the ability to issue 10–20 cards at once is essential. If the service limits you to one, it won’t suit large-scale tasks.
8. Top-Up methods
Some services work only with cryptocurrency. Others accept fiat. Check which method is more convenient for you.
Security
The security level of such cards is high. Data is not stored in the browser. Each card is tied to an account with two-factor authentication. There is an option to instantly block the card.
However, everything depends on the platform. If the interface is cobbled together and support does not respond, there is a risk of losing money. Choose only trusted services. Do not share card details with third parties.
Legal status of prepaid cards
Virtual prepaid cards are issued by payment platforms that hold licences. These may be European fintech companies, Asian payment providers, or international partner banks. Such cards operate within the legal frameworks of the countries where the providers are registered. But there is one important point: the user is responsible for complying with the laws of their own country. For example, in some jurisdictions, you must declare incoming funds on the card, even if it was issued abroad.
When a virtual prepaid card is not the best option
If you are making large purchases that require a guarantee, it is better to use a bank-linked card. For example, when booking a hotel or renting a car. Virtual cards may not pass verification.
You should also not use virtual cards to store funds. This is a spending tool, not a savings account. Funds on them are not insured. In case the service is blocked or there is a system error, recovering funds will be difficult.
Limitations of prepaid cards
- Limits: Each card has a limit on top-ups and spending. For example, a maximum of $1,000 per day or $10,000 per month. This limits use in large projects.
- No cash withdrawals: A prepaid card is not suitable for withdrawing money at ATMs. It is a tool for online payments only.
- Not accepted everywhere: Some platforms block payments from virtual cards. For example, airlines or foreign government services. Check in advance whether the card is accepted by the service you need.
- Expiry date: Usually, such cards are valid from 3 months to one year. After that, they need to be reissued.
Conclusion
A virtual prepaid card is a convenient tool for those who pay online. It offers more control, reduces risks, and enables work with different currencies and crypto. It is especially useful for purchasing ads, subscriptions, and digital services.
But keep in mind that this is not a universal solution. The card has limitations. To avoid mistakes — study the conditions, check the fees, and read reviews. Then the tool will work to your advantage.
