The Ins and Outs of Virtual Cards: How to Charge a Virtual Card with Pesapal

The Ins and Outs of Virtual Cards: How to Charge a Virtual Card with Pesapal

On 14 March 2023

With the rise of e-commerce and online transactions, it has become important to have a safe and secure way to make purchases online. Enter virtual cards, a type of payment card that exists solely in digital form.

According to Nation in their "Rise of virtual credit cards in Africa" write-up, they state that Africa has begun making its virtual credit cards as fintech pushes to end legacy challenges experienced in physical, traditional bank-aligned cards. They add, "as startups across the continent move to bring millions of unbanked into the financial sector using digital payment cards, they are also looking to tap into new demand for payment services created by growth in e-commerce and streaming services." 
In our blog post, we will explore virtual cards, their benefits to businesses and how you can charge virtual cards via Pesapal  

What are virtual cards  

Virtual cards are a type of payment card that exists only in digital form. They come with a unique digit card number, expiration date, and security code that can be used for a single transaction or a set of transactions within a specific time or period. These cards are typically issued by banks or third-party payment providers and are used to pay for services online. 

Benefits of Virtual Cards 

There are several benefits of virtual cards to hotel owners. Here are some of the most significant ones: 

Fraud Prevention: Virtual cards can reduce the risk of fraud and chargebacks for hotel owners. Since the card is only valid for a specific transaction or time, it cannot be used for any other unauthorized transactions.  

Improved Cash Flow: Virtual cards allow hotel owners to receive payments instantly, which can help improve cash flow. This is particularly useful for hotels that have to pay suppliers and employees on a regular basis. 

Increased Security: Virtual cards are more secure than traditional credit cards, as they have unique numbers that are only valid for a single transaction. This means that the risk of card cloning, or unauthorized use is significantly reduced. 

Other perks are that merchants can negotiate with the Online Travel Agents (OTAs) to get better terms on cancellations and refunds. Hotel owners can also charge no show and cancellation charges which reduce lost business.  

How To Charge a Virtual Card from an Online Travel Agent (OTA) on Your Pesapal Sabi PDQ/ POS Machine  

Pesapal Sabi POS enables hoteliers to process virtual card payments from OTAs. Here is how to charge a virtual card  

Once you receive a reservation from an online travel agent 

  1. Log into their portal and find their reservation and click on it for details. You will see the payment information including the virtual card details.  
  2. On the Pesapal Sabi PDQ, select USD as the payment currency, enter the exact amount that was received from the agent  
  3. On the charge card screen enter the 16-digit card number, enter the expiry date using the format shown on the PDQ, next enter the CVV and the virtual card will be charged, and a receipt will be printed out.  

How to Charge a Virtual Card on Pesapal Sabi POS 


Virtual Card FAQs  

How does a virtual card work for Business to Business (B2B) transactions? 

In B2B transactions, virtual cards are often used as a payment method between two businesses. The issuing company creates a virtual card with a unique card number, expiration date, and security code. The card can then be sent to the recipient for use in a specific transaction or time  

Are virtual cards secure for B2B transactions? 

Virtual cards are a secure payment method for B2B transactions, as they offer several security features. The issuing company can set specific limits on the card's use, such as a maximum amount of spending or vendor category restrictions. Additionally, virtual cards can be limited to a specific period or transaction, which reduces the risk of unauthorized use. Virtual cards may also have built-in fraud detection and prevention tools, such as real-time transaction monitoring or automatic alerts for suspicious activity. 

Can you charge virtual cards with Pesapal Sabi 

Yes, you can charge virtual cards from various Online Travel Agencies (OTAs) on Pesapal  Sabi and  Pesapal Reserveport. This streamlines your cash flow, increasing your revenue as you focus on giving your guests memorable experiences. You also enjoy next- day settlement with Pesapal Sabi. 

Virtual cards are a convenient and secure payment option for online transactions. They offer a range of benefits, including increased security, privacy, convenience, and cost-effectiveness. Creating a virtual card is a straightforward process, and there are several reputable providers to choose from. 

In the hospitality industry, virtual cards are becoming an increasingly popular payment option for hotel bookings and other transactions. With the rise of online bookings and contactless payments, virtual cards offer a safe and convenient way for hotels to accept payments and manage their finances. 

One example of this is Reserveport by Pesapal,  a platform that offers a virtual card payment solution for hotels. With Reserveport's virtual card solution, hotels can securely accept online payments and manage their transactions in real-time. The platform also offers features such as automatic chargebacks and easy reconciliation, making it a popular choice for hotels of all sizes. 

Overall, virtual cards are a valuable tool for anyone who wants to make online transactions more secure, private, and convenient. As the world continues to move towards digital payments, virtual cards will only become more important in managing our finances online. 

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Published In: How To's,Payments

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