What is a Virtual Card? And How to get one in Nigeria

8 min readMar 28, 2023

Millions of Nigerians are struggling to make payments online due to CBN restrictions on international payments. One alternate solution that is getting popular these days is using a virtual card. Similar to your ATM card, a virtual card has a 16-digit card number, expiry date, CVV and other necessary payment information.

But before you get a virtual card, in this article, you will learn in great detail what a virtual card is and how to get one in Nigeria.

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Key Takeaway:

A virtual card can only be used to make payments online. They’re best where physical bank cards may not be practical or secure or convenient.
You can get a virtual card through a bank, a third-party provider, or a mobile money wallet.
Ensure you keep your virtual card details secure by transacting only on websites you trust (with SSL) and your card details will be highly encrypted or not stored at all.

What is a virtual card?

A virtual card is a digital payment card that does not physically exist, but instead is created and used entirely online. It is typically a unique set of payment card details that can be generated and accessed through a website or mobile app.

Virtual cards are used primarily for online transactions where your physical bank cards may not be practical or secure, such as for making one-time purchases or for subscription services that require recurring payments. They can be used just like physical bank cards, with a card number, expiration date, and security code, but without the need for a physical card.

Virtual cards offer several advantages, including increased security as they are only valid for a specific transaction or limited period of time, and the ability to control spending and track expenses more easily.

Why use a virtual card?

Let's consider some benefits of using a virtual card in Nigeria to make payments.

Convenience: Virtual cards can offer a convenient and efficient way to make online purchases in Nigeria, where access to physical cards or traditional banking services may be limited.
Cross-border payments: Virtual cards can facilitate cross-border payments in Nigeria, where traditional banking services may be slow or costly. This can help to promote international trade and commerce in the region.
Security: Virtual cards can help you reduce the risk of fraud and unauthorized transactions from merchants. Also, card skimming and other forms of payment card fraud are common in Nigeria, but with unique virtual card details, you can shield your bank account from unexpected or unauthorised charges.
Financial inclusion: Virtual cards can provide greater access to financial services for those who may not have a traditional bank account or credit card. This can help to promote financial inclusion in Nigeria, where more than half of the population doesn’t have a bank account.
Control and tracking: Virtual cards allow you to easily lock your cards, set spending limits and track your expenses in real-time, which can help to control spending and manage budgets more effectively.

Some weaknesses of using a virtual card

While virtual cards offer many benefits like convenience, there are also weaknesses that you should be aware of.

Limited access to the internet: Virtual cards require an internet connection to create and use, which can be a barrier in Nigeria where access to the internet is quite expensive and unreliable.
Limited acceptance: While you may be considering getting a virtual dollar card since naira cards are frequently declined online, virtual cards may not be widely accepted by all merchants or service providers online. Also, there are various places in rural or remote areas where traditional payment methods like cash or ATM card are preferred.
Limited awareness: Many people in Nigeria may not be familiar with virtual cards or understand how they work, so most banks won’t be offering virtual cards to their customers.
Dependency on third-party providers: Virtual cards are typically provided by third-party providers, which can lead to issues such as limited customer support or difficulty resolving disputes or disruption of service, especially if the provider is based in another country.
Security concerns: While virtual cards offer enhanced security features, they may still be vulnerable to hacking or other forms of cybercrime, especially when you are using a web or mobile app with weak encryption and limited internet security.

How to get a virtual card

Since you now have a good understanding of what a virtual card is, you may want to get and use one.

There are several ways you can get a virtual card:

Through your bank: Few banks in Nigeria offer virtual card options to their customers. Fidelity, First bank, and Wema are some of the banks that offer virtual cards. You can check with your bank to see if they offer this service and what the requirements are for getting a virtual card.
Through a third-party provider: There are many third-party providers that offer virtual card services, such as Chippercash, Payday, and Pay by Forward. You can sign up for an account with one of these providers and generate a virtual card through their platform.
Through a mobile wallet: If you have a US identity document, you can request a virtual card from mobile wallet providers, such as Apple Pay, Google Pay, and Samsung Pay, which offers virtual card options that can be linked to your mobile wallet account.
Through a prepaid card provider: Prepaid card providers such as Paysafecard or Neteller also offer virtual cards that can be used for online transactions.

To get a virtual card, you will typically need to provide some basic personal information and may need to go through a verification process to confirm your identity. Once your account is set up and your virtual card is generated, you can use it to make online purchases, depending on the terms and conditions of the card issuer.

How to use a virtual card

To use a virtual card to pay, you will typically need to follow these steps:

Generate your virtual card: Depending on how you obtained your virtual card, you may need to generate the card details, such as the card number, expiration date, and security code, either through your bank or through a third-party provider.
Add the card details: Once you have generated the card details, you will typically need to add them to the payment form on the website or app where you want to make a purchase. Be sure to enter the correct details, including the card number, expiration date, CVV, and billing details.
Confirm the payment: After entering your card details, you will typically be asked to confirm the payment amount and other details before submitting the transaction.
Wait for authorization: The payment will be sent to the virtual card issuer for authorization. If the transaction is approved, the payment will be processed and deducted from the balance on your virtual card.
Check your balance: After the payment is processed, you can check your virtual card balance to ensure that the transaction was successful and that you have enough funds remaining to make future purchases.

If you are using a 3D card you may be asked to enter an OTP sent to your email (usually) attached to the card. If you can’t find it on your email or phone number, reach out to your card provider.

It is important to note that the exact steps for using a virtual card may vary depending on the card issuer and the payment platform being used, so it is always a good idea to read the instructions carefully and follow any specific guidelines provided by the virtual card provider.

Security tips for using a virtual card

Because they are getting popular, hackers and bad actors are looking for ways to steal virtual card information from less informed users.

But here are some security tips for using a virtual card:

Keep your virtual card details private: Only share your virtual card details with trusted merchants or service providers. Be wary of phishing scams or unsolicited requests for your card details.
Use secure payment platforms: Make sure the payment platform you are using is secure and reputable. Look for secure payment symbols or seals of approval, such as the padlock icon or SSL certificate.
Monitor your transactions: Keep a close eye on your virtual card transactions and check your account balance regularly to ensure that there are no unauthorized charges or suspicious activity.
Set spending limits: Some virtual card providers allow you to set spending limits or other controls on your card, which can help prevent unauthorized transactions.
Use two-factor authentication or a 3D secure card: Consider using two-factor authentication, such as a one-time password or biometric verification, when logging in or making a payment with your virtual card.

I suggest you always lock your virtual card if you are not on any subscriptions. Also, whenever you discover a debit on your card that you can’t tell where it came from, quickly reach out to your virtual card provider.

Alternatives to using Virtual Cards

Yes, this article was written to educate you on what a virtual card is and how to get one in Nigeria, but there are other alternatives you can use to make payments online:

Physical debit or credit cards: Traditional debit or credit cards can be used for in-person or online purchases and may be convenient since they are connected to your bank account. You don’t need to always fund them before you use them.
Mobile payment apps: Mobile payment apps, such as Chipper Cash, Kuda, and Pocket (formerly Abeg), allow you to make purchases using your smartphone.
Bank transfers: Bank transfers allow you to send money directly from your bank account to another person or business, either online or in person.
Bitcoin: Bitcoin or altcoins, can be used for online transactions since they are best designed for digital transactions. Bitcoin offers decentralized and secure payment options, so irrespective of national laws or regulations, you can pay with Bitcoin anywhere you go. Although it may not be widely accepted by all merchants yet.

It is important to choose the payment method that is most suitable for your needs and preferences, taking into account factors such as convenience, security, and accessibility.

Conclusion

If you care about convenience, privacy, and security, you should get a virtual card for your online payment needs. Another reason why a virtual card is great and in high demand is that you can get a virtual card dominated in foreign currencies like the dollar, which enables you to transact on international sites.

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