E-commerce and digital payments power everything from daily grocery shopping to large-scale procurement. The total transaction value of global digital payments is expected to reach $20.09 trillion in 2025 and rise to $38.07 trillion by 2030. Against this backdrop, companies and individuals have been searching for safer ways to pay without revealing sensitive bank details. One increasingly popular solution is virtual card payments.

Virtual cards can simplify accounting and reduce fraud risk for companies that are constantly chasing receipts, sorting through corporate card statements, or issuing company card information to remote employees for business expenses. Businesses can use virtual cards to monitor spending, share payment privileges more freely, and easily deactivate cards at the first sign of trouble without affecting other accounts.

Below, we’ll explain what virtual card numbers are, how they work, and how you can get one for your business.

What’s in this article?

• What is a virtual card number?
  
• Why are virtual card numbers useful?
  
• How can you get a virtual card number?
  
• Which platforms offer virtual card numbers?
  
• How do virtual card numbers work in business transactions?
  
• What are the limitations of virtual cards?
  
• How can Stripe Issuing help businesses use virtual cards?
  

What is a virtual card number?

A virtual card number is a payment credential that doesn’t exist as a physical piece of plastic in your wallet. It consists of a sequence of digits, an expiry date, and a security code, all generated online. These numbers serve the same purpose as those on a physical debit or credit card: you can use them for online purchases, in-app transactions, and even in-person payments (if the business’s platform supports mobile wallets).

Virtual card numbers are usually issued by financial institutions and come with protections that mirror those of traditional cards, such as fraud monitoring. In many cases, you can set specific limits and usage restrictions on virtual cards and monitor exactly how and when each card number is used.

Why are virtual card numbers useful?

While physical cards remain a valuable option for in-person transactions and day-to-day customer purchases, businesses can gain a real advantage by using virtual cards in certain situations. If you frequently work with software subscriptions or vendor invoices or encounter any scenario in which you don’t need a physical swipe, you might choose to use virtual cards for the following reasons:

• Virtual card numbers are easy to create and deactivate. You can create new card numbers on demand and deactivate them just as quickly. Typically, virtual cards can be deactivated without affecting your main account.
  
• Virtual card numbers can reduce unnecessary overhead. With virtual cards, there’s no need to print, ship, or physically store card plastics.
  
• Virtual cards often come with higher levels of control than physical cards. Many providers let you set spending categories or spending thresholds.
  
• A virtual card number can present less fraud risk than a physical card. It can be created for a single transaction or vendor, which limits possible misuse if the card data ever becomes compromised.
  
• Virtual cards can facilitate your accounting and bookkeeping. A dedicated virtual number can be assigned to a particular project or department to simplify internal approvals, minimise time-consuming reconciliation chores, and give you an organised trail of spending details.
  

How can you get a virtual card number?

To get a virtual card number, you’ll need a business account with an issuing bank or fintech platform. Different institutions have different requirements, and some might ask for documentation about your business entity or estimated transaction volumes.

Once your business account is set up, you’ll need to request virtual card services. Many banks have a section on their websites or mobile apps where you can request a virtual card number. Some ask you to call a representative, while others handle everything through an online dashboard.

Once you’re approved, the provider typically generates your virtual card number on the spot. You’ll see a 16-digit number, an expiry date, and the card verification value (CVV) or security code. As you’re setting up your virtual cards, you can set usage parameters such as spending categories, limits, and expiration windows. To use these cards, simply copy and paste the details into checkout forms, vendor payment portals, or any other place you’d normally use a credit or debit card.

Which platforms offer virtual card numbers?

Traditional banks, online-only banks, and certain fintech companies all offer virtual card options. Here are different types of virtual card providers and what they offer:

• Large banks: Many large banks have started adding “virtual card” features to their websites or apps. These features might be hidden under advanced card settings.
  
• Online-only banks: Digital-first banks tend to have more virtual card options because they’re already geared toward app-based banking.
  
• Stripe: Stripe Issuing allows you to create and manage large numbers of virtual cards with granular controls. If your team is global or if you work with numerous freelancers, this is a good way to centralise spending.
  
• Fintech apps: Some fintech apps partner with banks to offer virtual cards customised to their user bases.
  

When you search for a provider, think about how you’ll use these cards. Do you need to create one for every monthly service subscription? Are you giving employees daily spending authority? How much volume are you anticipating? The answers to these questions will help guide your search.

How do virtual card numbers work in business transactions?

From the user’s perspective, using a virtual card number is not that different from typing in a regular card number. You enter the virtual card’s digits during an online purchase, and the payment process operates as usual.

From the card manager’s perspective, virtual card numbers enable more control over how, where, and how often the card can be used. Imagine that an agency wants to give its designers and developers company cards to buy software licences, pay for stock images, or spend on marketing campaigns. Rather than give each team member access to the company’s main business card (which creates more risk and problems if the card is lost or compromised), the agency could instead create a dedicated virtual card for each person or project. For example:

• Card 1 could be used by the lead developer for monthly software subscriptions
  
• Card 2 could be assigned to the designer to buy stock photos
  
• Card 3 could be shared by the marketing team for online ad placements
  

In this scenario, each virtual card can have its own daily or monthly spending limit. The agency can see exactly what’s being charged and can pause or shut down any card without affecting the rest of its account. Transaction histories are easier to track because each card is linked to a specific purpose: total stock photo spend will be the entire balance of Card 2.

With providers like Stripe Issuing, you can programmatically generate or manage these cards. For example, you could have an HR system that creates a new card for each new employee or an accounting tool that automatically locks a card if the monthly budget is exhausted.

What are the limitations of virtual cards?

Virtual cards are useful, but they’re not the universal solution to every payment scenario. While many businesses now accept contactless payments for in-person purchases, others still rely on swiping a physical card and cannot accept virtual cards. Some people simply prefer to use a physical card, which is sometimes possible to combine with virtual cards. Certain platforms, including Stripe Issuing, can issue physical and virtual versions of a card simultaneously.

Beyond usage restrictions and personal preferences, here are some other potential limitations of virtual cards to keep in mind.

Management overload

It’s easy to generate a large number of virtual cards, which is a convenient feature. But if you generate too many of these cards without implementing a system for naming or categorising them, you could lose track. You need a good dashboard or process for reviewing, updating, or cancelling them.

Potential fees

Some providers charge monthly fees or transaction fees for premium features, which might include creating or using virtual card numbers. Before you commit, read the fine print. Will you be paying extra for each card created? Do you get charged an inactivity fee?

Security concerns

While virtual cards are more secure than physical cards by design, you still have to be cautious about how you share or store the numbers. If these numbers appear in unprotected documents, they’re still vulnerable to being compromised or misused. Always keep your main account safe with two-factor authentication or other protective measures.

How can Stripe Issuing help businesses use virtual cards?

While Stripe is most known for online payment processing, Stripe Issuing is a separate set of tools that lets you create, manage, and track multiple cards, both virtual and physical. This gives your team or your customers purchasing power under your own brand, and that can come with many advantages. For example, a ride-sharing platform might issue virtual cards to its drivers to pay for fuel or maintenance. The company can set weekly spending limits on each card or limit their use to specific petrol stations, and since the cards are virtual, they won’t get lost or stolen.

Here’s how Stripe Issuing works:

• On-demand card creation: Generate cards instantly, either through the Stripe Dashboard or via Stripe’s application programming interface (API). Stripe can create both virtual and physical cards, and they can be customised to match your brand’s logo and colours.
  
• Complete card customisation: Set spending caps, define allowed spending categories, and decide whether you want these cards to expire on a certain date or keep them active indefinitely.
  
• Detailed financial reporting: See who’s spending money, where they’re spending it, and how much they’re spending with real-time transaction tracking.
  
• Integration with existing systems: Unify your payouts and expenditures in one place by using Stripe to accept customer payments and make charges of your own. Or incorporate Issuing into your own software for an integrated workflow.