A distinct digital card number connected to your credit card account is known as a virtual credit card.(Photo : by PATRICK T. FALLON/AFP via Getty Images)
A recent study found that 48% of US consumers had signed up for a free trial of a subscription service and then neglected to cancel. Making this error repeatedly can cost you hundreds or even thousands of dollars annually. However, there's a simple solution that will spare you from this headache: making use of a virtual credit card.
Since many virtual cards are only good for one usage, they are perfect for free trials. The subscription shouldn't be able to charge you with your virtual card number if you fail to cancel. Even though you can use your virtual card number more than once, you can usually lock it to stop fresh purchases from being made or replace it with a different virtual card number.
Virtual Credit Card: What is It?
A distinct digital card number connected to your credit card account is known as a virtual credit card. It improves your online buying security by substituting the card number on your real card.
Certain issuers, such as Capital One, could provide easily accessible virtual credit card numbers through their apps. Some, such as Wells Fargo or Chase, let you to create a virtual card by linking your card to an electronic wallet such as Apple Pay or Google Pay.
Subscription services and other online purchases might be safer when done with a virtual card number. Furthermore, you could save money.
This is particularly true if you want to increase the security of all your online transactions or if you want to try out a free trial but are worried you won't remember to cancel before you are charged.
Since many virtual cards are only good for one usage, they are perfect for free trials. The subscription shouldn't be able to charge you with your virtual card number if you fail to cancel. Even though you can use your virtual card number more than once, you can usually lock it to stop fresh purchases from being made or replace it with a different virtual card number.
Here's why using these digital cards in place of your actual credit card is always recommended.
No Need to Pay for Subscriptions After Free Trial
Do you want to test a new service that offers a 30-day free trial but you're worried you won't be able to cancel in time and end up paying the monthly service charge?
Usually, you are unable to challenge a charge made with a standard credit card if you pay with it and fail to cancel. However, the service won't be able to charge you or sign you up if you use a virtual card that is only valid for one use or if you lock or replace the virtual card number.
It's Simpler to Handle and Terminate Current Subscriptions
In the last year, 81% of US people surveyed reported paying for one or more subscription services. Twelve percent of those surveyed claimed that although their subscriptions are expensive, they still pay for them. If that describes you, you might be able to save up some more money each year by terminating an undesired or unneeded membership.
Should your virtual card be reusable, like some provided by Capital One and Chase, you have the option to discontinue the membership at any time. To prevent your card from being charged by the subscription service provider, all you have to do is deactivate the virtual card associated with your account.
Still Earn Rewards
Do you want to get paid for your subscription expenses? You get all of the same advantages from using your virtual credit card as you do from using your real one. You will thus continue to accrue benefits while using your virtual card number even if your card has a higher reward rate for streaming services or food delivery applications.
The content provided on MoneyTimes.com is for informational purposes only and is not intended as financial advice. Please consult with a professional financial advisor before making any investment decisions.
