More French banks offer virtual payment cards: How do they work?
We look at digital card costs, payment methods, and their advantages and disadvantages
Digital cards have the same information as physical cards, but are stored on your smartphone
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Increasing numbers of banks in France are offering digital payment cards in lieu of the usual physical cards, describing them as a more modern and secure option. But how do they work?
What is a virtual bank card?
A virtual bank card is - to all intents and purposes - the same as a physical card, in that it is used to pay for purchases online and in shops or establishments that take cards.
It contains all the same information as that on a physical card, including the 16-digit ‘long’ card number, an expiry date, and a 3-digit security code (CVV).
The main difference is that the card is digital only. It is stored and used on the user’s smartphone. Also, most digital cards do not enable people to withdraw cash from ATMs (although some do).
How do I pay with a virtual card?
Most establishments will allow virtual bank card payment in the same way as they allow contactless payment using physical cards.
You typically have the card information stored on your smartphone - either on your banking app, via Apple Pay, Google Pay, or your Wallet - and then you hold the phone up to the card machine. It should work in the exact same way as a contactless card. There is usually confirmation on your phone - as well as the card machine - that the transaction has been successful (or not).
Some phones require you to have the card visible on your phone first before trying to pay, while others will bring the card up automatically when they detect the card machine.
When paying online, you can enter the card details in the exact same way as you would if you had a physical card, including the long card number, expiry date, and security code.
Sometimes, users are then asked to confirm the transaction in another way, such as by receiving a one-time passcode via text, or by using a biometric method such as a fingerprint or face recognition. This may happen when paying online, or at a physical location.
Which banks offer virtual cards in France?
Most banks now offer them in addition to physical cards. In France, this includes Caisse d'Épargne, Banque Populaire, la Banque Postale, LCL, Crédit Mutuel; and online banks including Revolut, Fortuneo and Hello bank!.
Read also: Why bank cards are changing in France
Read more: Why French bank cards are losing their printed security numbers
How much does it cost to get a virtual card?
The cost of a virtual card depends on the bank.
For example:
Société Générale charges €14 per year
Caisse d'Épargne charges €12-15 depending on the branch
BNP Paribas charges €24 per year.
Many of the online-only banks offer the cards free. This includes Fortuneo, Boursorama Banque, and Revolut.
What are the advantages and disadvantages of a digital card?
There are a number of advantages to having a digital card instead of a physical one, banks say.
Better security. It is more difficult to have your card and details stolen when there is no physical card to steal or lose.
An immediate payment solution. The card is available almost immediately after you sign up for a new bank account, whether with a traditional or online bank. No more waiting for a card to be sent to you by post.
More secure transactions. Digital cards usually require a separate form of authorisation, such as a one-time passcode or face recognition, to work. This makes them more secure than a physical card that can be tapped on a card machine by anyone.
In contrast, some digital cards have a few disadvantages.
