Subscriptions are everywhere now, whether it is streaming services, software subscriptions, gym subscriptions, food delivery plans, and more. Although they are very convenient, they may also result in undesired expenses and budget overspending should they be uncontrolled. Enter virtual cards, a smarter way to keep and have everything in check when it comes to your recurring payments.
Problem with Traditional Payment Methods
In the context of subscriptions made using a physical debit or credit card, the card information stays on file, having no termination date. You may end up being charged, something that you are not even aware of, either because you forgot to end a subscription to a service or because a free trial has transitioned to a paid plan. But even worse, with a breach in the merchant, your primary account information is in jeopardy.
How Virtual Cards Simplify Subscription Management?
A virtual card is a payment card that exists only in the digital world and has its own number, expiry date and CVV code and can only be used to process a certain subscription or a set of regularly recurring services. This arrangement enables you to have an unrivalled level of control over your payments.
This is how it works:
- Create a Card for Each Subscription – A dedicated virtual card to each service.
- Set Spending Limits – Make sure that a subscription can charge no more than what is expected to be paid in a month.
- Set Expiration Dates – Stop payment after a certain selected time.
- Instantly Freeze or Delete Cards – End subscriptions you do not want without calling customer service.
Advantages of Using Virtual Cards for Recurring Payments
1. Prevent Overcharging
In case a subscription suddenly increases its price, your budget constraint will prevent the superfluous payment.
2. Easy Cancellations
Do not go through complicated procedures of cancellation, but deactivate the virtual card connected to the subscription.
3. Organised Expense Tracking
You will have clean, itemised spending reports as you allocate each subscription to its own card; this will be great when it comes to budgeting.
4. Enhanced Security
In case the data of one subscription organisation is stolen, your actual bank account is not affected.
Real-World Example
Consider a use case of you subscribing to three services: Netflix, Adobe Creative Cloud, and a meal kit subscription.
- You utilise OnlineCheckWriter to make three single virtual cards.
- Netflix has a $15 limit per month, Adobe has a $55 limit, and the meal kit has a $60 limit.
- It will automatically fail in case any service attempts to bill more after you cancel.
Why Businesses Benefit Too?
It is not only people, but businesses are also interested in virtual cards to pay for renewed SaaS subscriptions, online advertising accounts, and cloud storage services. With each service placed on separate cards, teams in finance avoid unnecessary incurred expenses and make reconciliation less complicated.
Final Thoughts
Subscriptions are handy, but when not well-managed, they will leave your budget dry. Virtual cards will give total control, safety and relaxation in managing recurrent payments. Solutions such as the Virtual Card offered by OnlineCheckWriter allow setting up payments, monitoring, and cancellation in just a few clicks.
When every subscription is increasing, virtual cards are not only handy but also something one needs to use.
