Advantages and Disadvantages of Virtual Credit Card Processing
Virtual credit card processing devices have become the new trend in the electronic business. This is the reason why most people do business on the internet. Almost all credit card processing devices are compatible with any internet connection. Since the highest spending limit is pre-fixed, they are similar to gift vouchers that are issued by banks. Though the names of various cards differ, their mechanism remains the same. The virtual credit card processing is an effective measure to put an end to the credit card frauds.
If you want your company to get a good credit score, you must register yourself with the best virtual credit card enterprise to make your presence felt in the online market. This in turn will attract more customers to your store. Today, most of the people carry a plastic card than hot cash. It is time saving and helps customers to make deals and shop instantly because most of the consumers are impulsive shoppers.
There are many advantages of these cards and the major one being, its capacity to check the fraud related activities. The virtual credit card processing uses one number for a single transaction. Once the number is used, it is discarded and cannot be reused. Since the maximum limit of the spending capacity is fixed and the number allotted for transaction is valid only once, this mechanism is very safe. The hackers are not interested in these virtual cards because these cards expire within a short period.
The charges made by the terminal providers are minimal and they have 24 hours service to their customers. These terminals can be configured to suit a specific kind of business. In case you need to enter the customer's card information manually, you can do it. In case of a refund or cancelling a transaction, the options are available.
There is no need to install special software or hardware, neither at the buyers' side nor at the sellers' side. The processing fee is very low compared to other payment schemes on the internet. The purchase done by the buyer is anonymous. The merchant is not aware of the buyer's name. In this manner, the buyer is fully protected from fraud. Also, no fee is processed without the consent of the buyer. It is only after they confirm, the transactions take place.
The disadvantage of the virtual credit card processing is that the Merchant takes a risk because the goods are delivered to the customer even before the money is transferred to the company account. The other disadvantage is that there is generally a long wait between the sale and the payment being deposited in the merchant's account. At the consumer end, when you buy tickets for a movie or an airline, you are supposed to show the credit card. If you have used a virtual card number that may not match the credit card number you carry. Also the recurring expenses become a hassle because by the time of your next purchase period, your card number is likely to have expired.