Can I Use a Virtual Credit Card Internationally?

Yes, you can typically use a virtual credit card internationally, though there are several factors to consider to ensure a smooth transaction process.

Merchant Acceptance

The first step is to ensure that the merchant you plan to purchase from accepts virtual credit cards. Most major online retailers do, but some may not. Before making a purchase, it's crucial to verify the merchant's acceptance of virtual cards.

Card Issuer Policies

Each virtual credit card may have specific policies regarding international usage. Always check with your card issuer to confirm that your virtual card can be used for international transactions. Some card issuers may have certain restrictions in place.

Currency Conversion Fees

When using a virtual credit card for international purchases, be aware that currency conversion fees may apply, depending on the terms and conditions of your card. These fees can vary and are often applied when using a non-local currency.

Billing Address

Some international merchants may require that the billing address on file for the virtual card matches the address where the transaction is being made. Therefore, it's essential to ensure your billing address details are up to date before making any international purchases.

Fraud Protection

Virtual cards often provide an additional layer of security, making them particularly beneficial for international transactions. They can help protect against credit card fraud and unauthorized use.

Checking with Your Card Provider before making a purchase is a good idea to avoid any issues related to merchant acceptance, card restrictions, or billing address requirements.

Virtual Credit Card Providers

There are numerous virtual credit card providers available on the internet. Based on several years of industry experience, European, American, Hong Kong, and Singapore financial institutions issue many virtual cards. These cards generally have few restrictions for international shopping.

For example, a British virtual card can be used in other countries for spending and payment. However, some virtual cards may charge international transaction fees.

Note that due to fraud prevention measures, some U.S. e-commerce platforms like Walmart and Target support virtual card payments only issued within the country. These platforms often use AVS (Address Verification System) verification. Credit card payments that have a non-U.S. billing address will fail.

Unless e-commerce platforms implement strict risk management, virtual cards generally pose no barriers to online international payments in most cases.

Similarities Between Virtual and Physical Credit Cards

For online payments, there isn't much difference between using a virtual card and a physical one. When paying with a credit card online, you typically need to provide the card number, expiration date, and security code. Virtual cards obtained from virtual credit card providers can also provide this information.

The main differences between virtual cards and physical cards include the lack of a physical card, inability to use offline or withdraw cash at ATMs, and the exclusive use for online purchases.