Virtual Card

Concept definition

Virtual Card, or more precisely Virtual Card Number (VCN), are digitally displayed on the online banking space of users and are designed to secure online payments. Instantly generated and available on the consumer’s digital banking interface with a secured access, they offer new possibilities to the consumers, and more opportunities for the issuers to blend the physical card with the real-time and interactive aspects offered by the smartphone, to create a fantastic payment experience.

The IDEMIA Virtual Card service enables the generation and verification of ready-to-use and on-demand virtual card for secure online payments. This service can be combined with the IDEMIA Secure Display Service to secure the display of the virtual card from the issuer’s mobile app.

Use Cases

Secure online payments for all/some card products

• A virtual card can be generated and shared to the user right after opening an account or applying for a credit line, offering immediate access to payment capacity – a feature greatly appreciated while waiting for a physical card in the mail,
• This is another use case that speaks highly in favor of virtual payment cards: in case of a lost or stolen physical card, virtual cards offer a great alternative or temporary solution. They can be requested and generated on-demand, anytime and anywhere in the mobile banking app,
• A virtual card can be used in the context of one-time guest checkout or card-on-file registration for recurring payments,
• A virtual card can be seen as an additional security method to secure remote payments, and coexist with a physical card (both related to the same funding PAN). Complementary to physical payment cards, in particular to numberless cards, virtual cards make online payments safer and put cardholders in control (full numberless physical card or “CVV-less” only).

Creating a virtual card for relatives or offering a gift card

• Users can generate virtual card with a given array of settings, like the maximum amount allowed to offer a gift card to a friend. The benefactor only has to select an amount and communicate the virtual card number to the beneficiary,
• It is also true for relatives, such as for kids, for whom the cardholder can easily generate a virtual card with a predefined amount and/or a limited timeframe. A cardholder can also create a virtual card dedicated – and limited to – a specific merchant to control spending. The cardholder can also follow the cumulative amount used by the relative and top up the card when needed.

Corporate cards

• n the professional context, virtual cards can be created and made available for a given employee for a given use case such as a business trip or event organization; they thus offer a great alternative to both physical corporate cards and the use of personal payment cards for business purposes,
• Made available instantly, they greatly simplify the organization and funding of business trips, removing the need to undergo tedious reimbursement processes, while giving the business improved visibility on spending, as well as more control on spending limits. And there is still no hassle in having the cards mailed, delivered, received, carried, or destroyed.

COVID-related use cases

The COVID-19 pandemic is having a profound impact on the banking and payment industry as safety measures and lowdowns have fundamentally impacted people’s daily lives. Today, the impact of the pandemic is accelerating digital transformation roadmaps as card issuers race to significantly upgrade their digital services and propose new payment related features from their mobile banking app.

Virtual card numbers are a wonderful tool to distribute funds such as stimulus and give consumers access to payment capacity. It avoids queue at bank branches and ATMs. These virtual cards could be used for online payments but also in-store via QR code to pay or cash out money.

User Experience

Benefits for cardholders

• To make a payment online using virtual card, cardholders simply login to the bank’s mobile app, verify their identities and access their card details and security code. A true revolution that makes online payments even more secure and creates a convenient customer experience,
• Virtual card gives the consumer a continuous access to a payment mean. It is a convenient solution for on-demand need or unexpected physical card events such as lost or stolen card. No more purchases suddenly denied, no more days wasted checking your mailbox, no more frustration of not being able to make payments, no disruption in the payment experience... This increases privacy and security levels, further reducing the risk of online fraud in the case the physical payment card is lost or stolen,
• Customers are in control

Key features

Virtual card data type configurations

Card issuers can select the format for the alternate data to be generated by the IDEMIA Virtual Card service. It includes the card data (token PAN, expiration date, CVV) or the dynamic CVV only.

Domain and usage parameters

Service Benefits

The IDEMIA Secure Display service provides issuers with the following benefits:

• End-to-end security service to avoid issuer’s mobile app to be under PCI-DSS constraints,
• Improving security and trust by relying on sensitive card-related data display, putting the cardholder “in control”,
• The unmatched immediacy and convenience of displaying securely card related data such as card number or PIN number creates a unique set of benefits, fostering client satisfaction, boosting customer acquisition and retention,
• Consumers can immediately start accessing payment credentials for online payments after onboarding or in case of lost or stolen physical card. The result? This continuous access to a payment means is a great way to customer satisfaction,
• Easy to integrate set of APIs and mobile SDK.

Integration overview

Below are the different end-points the issuer needs to integrate with to benefit from the IDEMIA Virtual Card service:

The issuer will integrate IDEMIA Issuer API for Virtual Card with its Card Management System. This integration can be done with the issuer’s processor. On top of this integration, issuer’s customer care agents can access IDEMIA Customer Care portal. Issuer authorization/processing server will connect to IDEMIA Detokenization API with its Authorization Server. If the IDEMIA Virtual Card Service is not combined with the IDEMIA Secure Display service, IDEMIA will integrate with the issuer wallet and display provider via the IDEMIA TR API.