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How Does A Virtual Visa Card Work & How To Choose A Provider

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Virtual Visa Card

If you have recently become curious about the idea of virtual visa cards, then there is a chance that you have a reason to not only learn about these but also start using them.

You might be running an e-commerce company and you might have realized that the benefits of using these virtual financial tools are large and that your business definitely needs them. Or, you might simply be curious about how all of this works without having any actual intentions of using the solution.

Well, whatever your case may be, I am sure that you could largely benefit from a credit card with virtual number, which just means that you might get quite interested in using these tools after learning about them, even if you don’t have any intentions of doing it right now.

The fact that you are here tells me that you are interested in these instruments and solutions, which is why I don’t buy the idea that you are just curious and that you have no intentions of actually using the tools. After all, you are showing interest and that immediately means that there are some intentions, no matter how deeply buried they might be right now.

I am not here, however, to dissect your mind and try to figure out why it is that you are interested in learning about these instruments because that is practically irrelevant to me. I would, however, urge you to think about those reasons and intentions you have all on your own because that might reveal a few things to you.

Most likely, it will reveal that you are subconsciously rather drawn to these cards and that you are aware of how beneficial it can be for you. As previously said, though, I’m not here to take wild guesses regarding that.

What I am here for is this. I will help you understand precisely how a virtual visa card works, which will lead you towards getting a completely clear picture of it all and thus decide if you want to use this option, or if you would like to continue ignoring it. It is especially important for digital company owners to read about these solutions because they are the ones who benefit the most from these virtual visa cards.

In any case, as I am quite sure that you will become even more interested in using these once you realize how they work, I will do one more important thing for you. In short, I will tell you a bit more about how you should go about choosing the right provider for you, because there are certainly various different companies out there ready to offer you their virtual cards, and you cannot just randomly pick out one of those. Well, yes you can, but that’s not quite wise. Anyway, let us take things one step at a time.

Here’s a comprehensive explanation of virtual cards: https://money.usnews.com/credit-cards/articles/virtual-credit-cards-explained

Virtual Visa Card works

How It All Works

Since we will be taking things one step at a time, it is only logical for us to begin with the step of showing you how all of this actually works, since you cannot go any deeper into the topic if you still don’t know this. I know that it might all sound a bit confusing and puzzling in the beginning, especially if you have never had the chance to listen to anyone who knows their way around these virtual instruments, but here’s the thing. It is all actually pretty simple. You just need to go through the initial stage of confusion and do your learning, which is when you’ll realize the simplicity of it all.

So, a virtual visa card is basically a set of numbers that are generated completely randomly and that represent your visa or your bank account. While you can use these random numbers to complete online transactions, the good thing is that thieves cannot use them in order to breach your account and basically get your personal information and your money. The random numbers that you will use, for example, today to complete certain transactions will automatically get reset after the transactions have been done, which further makes it impossible for those thieves to steal your information.

The explanation above has probably helped you realize that these virtual options are much safer than the traditional ones that we are all used to. Well, that is precisely why businesses are increasingly turning towards using them in their daily online operations. That is also why I previously mentioned that digital company owners will largely benefit not only from learning about these cards but also from starting to use them. Read more about those benefits.

Given the popularity of these virtual options, there is talk that they will actually become a must for businesses in the future. Even if that does not happen to be the case, every single company owner who starts using them will swiftly become aware of their importance, because they provide better security, and security is the one thing that businesses should never lose sight of. So, it might be a wise idea for you to swiftly start transitioning towards this particular solution, as it can be much safer for your business.

Virtual Visa Card works1

You probably have a better understanding of how all of this works right now, but there is a small chance that you need some further explanations, so let me provide those for you. Basically, this virtual visa card represents your specific account, but it is actually nothing but a set of random numbers and, of course, a CVV code that will be instantly generated for you. So, you can use it just like you would use your traditional card and there is no waiting period here. In other words, you can start completing transactions the moment you generate those numbers I’ve mentioned.

If you’re not sure how this functions money-wise, let me explain that as well. When you make a transaction with this virtual instrument, the actual cost will be routed back to your underlying account, i.e. the one that is linked to the random set of numbers that you’ve received, meaning that you’ll easily get charged for whatever it is that you have bought. After you’ve completed the purchasing process, the automatically generated number will just as automatically expire, which brings us back to the fact that those numbers are practically useless to potential thieves that might try to steal your information and your money.

Since these cards are not made from plastic given that they are, well, virtual, you can only use them for online transactions. So, if you were planning on giving these random numbers to brick and mortar stores when doing your shopping, you should know that this is impossible. Those stores aren’t equipped to accept virtual cards, but the Internet very well is, meaning that you can easily use them to make online purchases from any suppliers and merchants that accept visa cards in general. Given that we’re all shifting to online shopping in general, I’d say this is enough.

Virtual Visa

How To Choose A Provider

Now that you comprehend what virtual cards can do for your business, you are most likely interested in starting to use them. In order to do that, though, you will need to find the perfect provider that will offer you these specific services. Once you begin your online research, because you’ll definitely use the Internet to search for these providers, you will probably get surprised by the number of companies that operate in this line of work. So, the fact that there are so many different providers out there will just make your decision on which one to work with much more difficult.

I get the fact that you might be overwhelmed with all the different options and the choice you have to make, but here’s what you should know. As long as you put some effort into it, you will, without a doubt, manage to make the best possible choice and start working with the perfect provider of these virtual visa cards. Of course, you need to know what it is that you should keep in mind while doing the research and while putting the effort into making this choice, and that’s what I’ll help you out with.

First of all, you should always check the experience of these firms, because the idea of working with amateurs who are just starting out on the market is probably not appealing to you. I am not saying that you should never give new companies a chance, but you would need to be absolutely sure that the new company is legit and capable of providing you with the best services if you decided to give it a chance. This is why going for those more experienced firms is actually a better move because it provides you with a sense of security right away.

There is one thing, however, that is much more important than experience and that you should never take for granted. All of these providers will have built a certain reputation over time and that reputation will be the result of the way they have operated in the market, i.e. of their success or their lack of success. You can check their success and their reputation by learning what other clients have to say about their specific services, meaning that you should read some online reviews before making a choice. Of course, apart from all of this, you should also check the fees offered by these providers, so as to be sure that you are making the smartest choice.

Dipo Olowookere is a journalist based in Nigeria that has passion for reporting business news stories. At his leisure time, he watches football and supports 3SC of Ibadan. Mr Olowookere can be reached via dipo.olowookere@businesspost.ng

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Economy

Academy Press, NGX Group Emerge Week’s Worst-Performing Stocks

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Academy Press

By Dipo Olowookere

Investors offloaded shares of Academy Press, Nigerian Exchange (NGX) Group and others last week as precautionary measures, especially for the NGX Group.

Information went round that the parent company of the nation’s main stock exchange violated the same offence it punished several organisations for.

This triggered mixed reactions, and the board had to issue a statement to calm nerves, stressing that it was committed to upholding “the highest corporate governance standards, as it has historically done.”

“We are extremely mindful of due process, our records are verifiable, and we are on course with our long-term strategy execution,” a part of the statement issued last week further said.

In the week, Academy Press lost 22.73 per cent to trade at N1.70, NGX Group fell by 13.92 per cent to N17.00, Cadbury Nigeria dropped 13.82 per cent to close at N11.85, BUA Cement declined by 10.39 per cent, while CWG went down by 10.00 per cent.

The disruption in investors’ confidence in the market caused the share prices of 42 firms to shrink in the five-day trading week, compared with 39 recorded in the previous week.

Business Post reports that 17 equities gained points last week, higher than the 13 appreciated a week earlier.

Vitafoam gained 12.25 per cent to close at N22.45, Fidelity Bank grew by 10.85 per cent to N3.78, Unity Bank appreciated by 10.00 per cent to 44 Kobo, eTranzact rose by 9.97 per cent to N3.20, while RT Briscoe jumped by 9.37 per cent to 35 Kobo.

Data from the bourse showed that the All-Share Index (ASI) and the market capitalisation depreciated by 0.91 per cent to 49,026.62 points and N26.445 trillion, respectively.

Similarly, all other indices finished lower except for the NGX premium, banking, pension, NGX AFR Bank Value and NGX MERI Value, which appreciated by 0.13 per cent, 2.27 per cent, 0.05 per cent, 0.08 per cent and 1.84 per cent, respectively, while the ASeM, growth and NGX SOVBND indices closed flat.

The activity chart revealed that investors traded 562.856 million shares worth N9.438 billion in 16,013 deals during the week, in contrast to the 719.398 million shares valued at N8.004 billion transacted in 17,444 deals in the preceding week.

The financial services sector led the chart with 381.958 million shares valued at N4.551 billion traded in 8,627 deals, contributing 67.86 per cent and 48.21 per cent to the total trading volume and value, respectively.

The ICT industry followed with 59.345 million shares worth N2.480 billion in 1,272 deals, while the third place was the services space with 32.212 million shares worth N95.807 million in 607 deals.

Zenith Bank, NGX Group and GTCO were the busiest stocks in the week, with a cumulative sale of 183.929 million units worth N3.499 billion in 3,628 deals, contributing 32.68 per cent and 37.07 per cent to the total trading volume and value, respectively.

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Economy

Investors, Others Anticipate Outcome of CBN’s MPC Meeting

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MPC Meeting CBN

By Aduragbemi Omiyale

The much-awaited Monetary Policy Committee (MPC) meeting of the Central Bank of Nigeria (CBN) commenced today, Monday, September 26, 2022.

It is the last, but one meeting of the monetary team saddled with the responsibility of determining the Monetary Policy Rate (MPR) for the country.

The meeting is for two days. The first leg of the gathering started at 10 am today at the MPC Meeting Room on the 11th Floor of the headquarters of the CBN in Abuja.

Tomorrow, Tuesday, September 27, 2022, the second part of the gathering will take place at the same venue by 8 am.

After about five hours or more, the Governor of the CBN, Mr Godwin Emefiele, will inform the public, through the media, of the outcome of the MPC meeting.

He will address journalists on the team’s decision after deliberations, especially after carefully looking at the economic parameters, including the inflation rate, the gross domestic product (GDP), and the money in circulation, among others.

At the last gathering, which occurred precisely in July, the anchor interest rate was increased by 100 basis points to 14.0 per cent from 13.0 per cent. This action was taken mainly to control the rising inflation.

About two weeks ago, the National Bureau of Statistics (NBS) announced that the inflation rate in Nigeria jumped to 20.52 per cent in August 2022 from 19.64 per cent in July 2022.

Last week, the major central banks across the globe further hiked interest rates to tackle inflation, and it is expected that Nigeria will follow suit.

Inflation in Nigeria has been triggered by the rising cost of food items as a result of insecurity in the northern part of the country, where most of the food crops are planted.

This year’s problem has majorly been caused by flooding and the inability of farmers to go to their farms as a result of bandits and terrorists, who collect taxes from them before crops can be planted.

Efforts by the government to protect the farmers have not yielded the expected results.

Members of the MPC will look at these issues and give their expert view on whether the rate should be lowered, raised or left intact. But observers believe that the interest rate would be further increased to reduce money in the financial system and then hope that the prices of goods and services will decrease to attract more consumers.

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Economy

Vendease Raises $30m to Aid Food Supply Chain

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Vendease

By Adedapo Adesanya

Vendease, a digital platform which allows African restaurants to buy supplies, access financial services and power their business operations, has raised $30 million in an equity and debt funding round.

The series A equity round of $20 million was co-led by TLcom and Partech in a rare joint investment by two of the biggest Africa-focused funds. Following their investments, Mr Andreata Muforo (Partner at TLcom) and Mr Cyril Collon (General Partner at Partech) will join Vendease’s board as new directors.

The equity round also included VentureSouq, Hustle fund, Hack VC, GFR Fund, Kube VC, Magic Fund and Kairos Angels, who re-invested after participating in the previous round.

Vendease also raised the $10 million debt round from the local finance market.

Commenting on the funding, Mr Tunde Kara, CEO and co-founder of Vendease, said the company would use the proceeds to consolidate its growth and operations in Nigeria and Ghana and to support its expansion across the continent.

“Our mission is to enable the efficient flow of food across Africa, from the point of production to consumption. We want to transform how the entire sector works and remove the bottlenecks that stunt the growth of restaurants and food businesses,” he added.

Launched in January 2020, Vendease’s digital procurement engine makes it easier for restaurants in 8 cities across Nigeria and Ghana to buy food supplies at considerably cheaper rates than open market prices, with guaranteed 12-hour delivery. Over the last 12 months, the company has moved more than 400,000 metric tonnes of food through its platform, helping its users save more than $2,000,000 in procurement costs and more than 10,000 man-hours. Its data has also helped them reduce wastage from overstocking by an additional $485,000.

The company said it has seen triple growth in the number of users on its platform and 5x in revenue over the last 12 months.

“Users have also accessed more than $12 million worth of inventory via its embedded finance product,” the company added.

For restaurant owners, they simply need to download the app, complete the registration process in a few clicks, and they will be able to access all the benefits of Vendease’s platform. They can also access working capital through Vendease’s Buy-Now-Pay-Later offering to maximise their growth opportunities.

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