Lugging around physical debit cards is becoming a thing of the past. Now, virtual cards are the future. More and more folks are converting to a virtual debit card over a physical debit card for convenience and protection from theft or loss.
In this article, we'll break down exactly what is a virtual debit card, the perks of using an online card, and how to open an online debit card today. Now, without further ado, let's break down what a virtual debit card is.
Note: Virtual payment cards are becoming more and more popular for a reason. If you want to start protecting your money from theft or fraud, and open a hassle-free virtual debit card, try Bonsai Cash. No hidden fees or monthly minimum balance requirements and you'd be able to instantly create sub-accounts online. Open an account today.
A virtual payment card, sometimes referred to as a pseudo card number, is a credit or debit card that can be created and managed through a website or online application.
A virtual debit card is exactly like a physical bank card without the actual tangible card. Just like a traditional debit card, a virtual card contains 16-digit randomly-generated numbers, along with a card verification number and an expiration date.
A virtual card is attached to an underlying debit account online or an existing credit card. When shopping online, you'd simply enter the debit card number and other card details when purchasing goods or services.
Although you cannot use a virtual debit card at places where a chip or card swiping is mandatory, there are a bunch of nice benefits to going virtual instead of using a physical debit card. We'll break down some of those perks below.
Since a virtual credit or debit card is only available in digital form, there are a ton of unique benefits available to them. Let's review what you can gain by using a virtual card.
Since digital cards are not a physical cards and they exist only online or on your phone, they are protected by your passcode. You won't have to worry about theft, loss, or cloning, unlike traditional debit cards. A virtual debit card can be disabled right away if you are suspicious of your card details being exposed to a hacker.
Virtual debit cards are electronically encrypted which means they would protect you from banking fraud.
Many virtual payment cards allow you to add two-factor authentication options to boost security. When making online payments, virtual numbers cannot be traced to your bank account or credit card so it is much, much safer than physical cards.
Virtual payment cards are also great to use for recurring payments. After business payments or online purchases are processed, the payment details are sent to a General Ledger, where the transaction is booked. You'd be able to spot duplicate payments or fraudulent charges as they will be flagged. Feel at ease whenever you pay online with a virtual card.
You can also set daily or maximum spending limits on virtual payment cards to avoid being overcharged by a merchant or fraudster.
If you are a business owner, there are a ton of great peaks. For example, you can assign a spending limit to employees' cards and give them a budget. Also, when you are running marketing campaigns and are buying online ads, limits can help protect you from accidentally overspending.
Set maximum spend limits, expiration date for the card, and merchant locks to control spending and automatically freeze cards. These work great for virtual credit cards as well.
There are many places to open virtual cards. A virtual credit card can be given to you from just about any online bank or card issuer from anywhere.
You just need to compare and pick the best one that suits your needs. For example, Chime is a popular online bank account. However, if you want a virtual card for business and not for personal use, Chime does not give business accounts.
So based on your needs, pick the right bank for you. We'll introduce you to a virtual debit card that also offers a physical card--Bonsai Cash.
Bonsai Cash is a new online bank account that allows you to create virtual cards instantly. When you open an online bank account, you won't be hassled by hidden fees, minimum balance requirements or foreign transaction fees. Bonsai Cash is free to use with a Bonsai account.
Let's go over some other reasons why folks are raving about Bonsai Cash
Note: If you want a virtual card without any hassle, try Bonsai Cash. with Our bank account has no hidden fees or monthly minimum balance requirements. There is no application process so you can get started and have a virtual debit card set up today. Click here to open an account.
Making online and offline payments is simple with Bonsai Cash, You'd be assigned a virtual debit card number you can easily transfer money to and you can begin making purchases online right away.
Bonsai Cash's digital card easily integrates with mobile payments and a digital wallet by scanning it with Apple Pay or Google Pay. In-store purchases can be made on your phone if contactless payments for Apple Pay or Google pay are accepted.
Users can even receive a physical debit card along with their virtual card to account for stores that only accept chips or swipes. Bonsai Cash's physical debit card will allow you to withdraw money from ATMs as well.
Many freelancers prefer this business account because it is easy to separate business expenses from personal ones. This comes in handy when business owners are filing taxes at the end of the year.
Bonsai Cash's envelopes feature allows you to create sub-accounts at the push of a button. Sub-accounts are useful if you want to save for retirement, taxes, or vacations automatically.
Every time you receive virtual payments, an assigned percentage of the total will automatically be deducted from the payment and dispersed into each sub-account.
You'd be able to create as many sub-accounts as you need to organize your finances.
Bonsai cash automatically has daily transaction limits. For ATM withdrawals, it’s $300. For card transactions, it’s $2000 and for transfers to external banks, it’s $3,000. You can change or edit these transaction limits based on your needs.
Since online debit cards offer you virtual numbers, virtual debit cards do not run credit checks in order for you to get approved for a new bank account. You won't have to worry about a ChexSystems report to see if you qualify for a new account. A new business checking account is guaranteed.
Stop walking around with a physical card. Instead, try Bonsai Cash today by creating an account and see how our virtual debit card can help with convenience as well as organize your business money for taxes.
A verbal contract (formally called an oral contract) refers to an agreement between two parties that's made —you guessed it— verbally.
Formal contracts, like those between an employee and an employer, are typically written down. However, some professional transactions take place based on verbally agreed terms.
Freelancers are a good example of this. Often, freelancers will take on projects having agreed on the terms and payment via the phone, or an email. Unfortunately, sometimes clients don't pull through on their agreements, and hardworking freelancers can find themselves out of pocket and wondering whether a legal battle is worth all the hassle.
The main differences between written and oral contracts are that the former is signed and documented, whereas the latter is solely attributed to verbal communication.
Verbal contracts are a bit of a gray area for most people unfamiliar with contract law —which is most of us, right?— due to the fact that there's no physical evidence to support the claims made by the implemented parties.
For any contract (written or verbal) to be binding, there are four major elements which need to be in place. The crucial elements of a contract are as follows:
Therefore, an oral agreement has legal validity if all of these elements are present. However, verbal contracts can be difficult to enforce in a court of law. In the next section, we take a look at how oral agreements hold up in court.
Most business professionals are wary of entering into contracts orally because they can difficult to enforce in the face of the law.
If an oral contract is brought in front of a court of law, there is increased risk of one party (or both!) lying about the initial terms of the agreement. This is problematic for the court, as there's no unbiased way to conclude the case; often, this will result in the case being disregarded. Moreover, it can be difficult to outline contract defects if it's not in writing.
That being said, there are plenty of situations where enforceable contracts do not need to be written or spoken, they're simply implied. For instance, when you buy milk from a store, you give something in exchange for something else and enter into an implied contract, in this case - money is exchanged for goods.
There are some types of contracts which must be in writing.
The Statute of Frauds is a legal statute which states that certain kinds of contracts must be executed in writing and signed by the parties involved. The Statute of Frauds has been adopted in almost all U.S states, and requires a written contract for the following purposes:
Typically, a court of law won't enforce an oral agreement in any of these circumstances under the statute. Instead, a written document is required to make the contract enforceable.
Contract law is generally doesn't favor contracts agreed upon verbally. A verbal agreement is difficult to prove, and can be used by those intent on committing fraud. For that reason, it's always best to put any agreements in writing and ensure all parties have fully understood and consented to signing.
Verbal agreements can be proven with actions in the absence of physical documentation. Any oral promise to provide the sale of goods or perform a service that you agreed to counts as a valid contract. So, when facing a court of law, what evidence can you provide to enforce a verbal agreement?
Unfortunately, without solid proof, it may be difficult to convince a court of the legality of an oral contract. Without witnesses to testify to the oral agreement taking place or other forms of evidence, oral contracts won't stand up in court. Instead, it becomes a matter of "he-said-she-said" - which legal professionals definitely don't have time for!
If you were to enter into a verbal contract, it's recommended to follow up with an email or a letter confirming the offer, the terms of the agreement , and payment conditions. The more you can document the elements of a contract, the better your chances of legally enforcing a oral contract.
Another option is to make a recording of the conversation where the agreement is verbalized. This can be used to support your claims in the absence of a written agreement. However, it's always best to gain the permission of the other involved parties before hitting record.
Fundamentally, most verbal agreements are legally valid as long as they meet all the requirements for a contract. However, if you were to go to court over one party not fulfilling the terms of the contract, proving that the interaction took place can be extremely taxing.
So, ultimately, the question is: written or verbal agreements?
Any good lawyer, contract law firm, or legal professional would advise you to make sure you formalize any professional agreement with a written agreement. Written contracts provide a secure testament to the conditions that were agreed and signed by the two parties involved. If it comes to it, a physical contract is much easier to eviden in legal circumstances.
Freelancers, in particular, should be aware of the extra security that digital contracts may provide. Many people choose to stick to executing contracts verbally because they're not sure how to write a contract, or they think writing out the contract terms is too complicated or requires expensive legal advice. However, this is no longer the case.
Today, we have a world of resources available at our fingertips. The internet is a treasure trove of invaluable information, platforms, and software that simplifies our lives. Creating, signing, and sending contracts has never been easier. What's more, you don't have to rely on a hiring a lawyer to explain all that legal jargon anymore.
There are plenty of tools available online for freelancers to use for guidance when drafting digital contracts. Tools like Bonsai provide a range of customizable, vetted contract templates for all kinds of freelance professionals. No matter what industry you're operating in, Bonsai has a professional template to offer.
A written contract makes the agreement much easier to prove the terms of the agreement in case something were to go awry. The two parties involved can rest assured that they're legal rights are protected, and the terms of the contract are sufficiently documented. Plus, it provides both parties with peace of mind to focus on the tasks at hand.
Bonsai's product suite for freelancers allows users to make contracts from scratch, or using professional templates, and sign them using an online signature maker.
With Bonsai, you can streamline and automate all of the boring back-office tasks that come with being a freelancer. From creating proposals that clients can't say no to, to sealing the deal with a professional contract - Bonsai will revolutionize the way you do business as a freelancer.
Why not secure your business today and sign up for a free trial?