The news which is spreading very fast in the world is, Revolut Limited is Launching a “disposable” virtual card for online purchases that renews customer’s details each time to prevent fraud. This is a different type of virtual cards as it canceled after every transaction. This step is taken to reduce fraud percentage which increases day by day.
First, you have to know what Revolut is.
Revolut is a digital banking alternative that includes a pre-paid debit cards, currency exchange, cryptocurrency exchange and peer to peer payments. Headquarter of Revolut is present in United Kingdom which contains 300 plus employees and has 87 million USD equity.Founders of Revolut are Nikolay Stroronsky and Vlad Yatsenko.
What is the logic behind this step?
According to FICO (data analytics company), Card not present (CNP) fraud increase more 50% – 70 % in European firms. CNP fraud is a practice whereby a fraudulent transaction is made without a card being physically present.
The logic to launch this card is that this will stop fraudsters from being able to make purchases with stolen cards, or stolen card details. But it depends on the customer choice that he will like to use it or not. This is a long-term solution to handle and prevent the customer from online fraud.
How to use this Disposable card?
If you shop at the online sites then you know that these services first request you to enter your card number. The second one is to keep charging the same card. If you don’t want to buy anything again from this website and don’t want to give your actual card number then you have to generate a virtual card in Revolut and enter it on weird site. After the completion of the transaction, Revolut disables this card forever.
And if the site wants to charge you again, the transaction will stop. And for the new order, you have to generate a new card.
Opening of account
The customer can open their current account in just 60 seconds and offers currency exchange at the rate that banks lend to each other. It has applied for a European Banking License. The Revolut’s new feature will work alongside its current security features, which include location-based security, the option to freeze and unfreeze physical cards and to disable functions like contactless and swipe payments.
If a customer needs to refund for something she/he bought using a disposable card, Revolut says he/she will be able to put the money back in his/her main account.
There’s no change to permanent cards. When you create a Revolut account, you get a virtual card for free. You can get a physical card for £5/€6 or you can subscribe to a Revolut Premium account to get it for free. Additional cards (physical or virtual) cost £5/€6, with a maximum of five cards in total.