Travel Bookings: A Guide to Using Virtual Cards with Online Gateways

Guide to Using Virtual Cards

The digital era has ushered in revolutionary payment methods, with virtual cards at the forefront of secure and convenient online transactions. Primarily championed by the travel industry, these digital wonders are transforming how customers book their accommodations and how agencies manage finances. In this educational piece, we'll take a comprehensive look at virtual cards and how to best utilise them through an online payment gateway, drawing key insights from the practices of online travel legends like Booking.com.

What Are Virtual Cards?

Virtual cards are digital versions of traditional credit or debit cards, designed to protect financial information and enhance online payment security. They function similarly to physical cards but exist solely in a digital realm. Unlike their physical counterparts, virtual cards are typically generated for single-use or limited use, providing a unique card number for each transaction, thereby reducing the risk of fraud and unauthorized use.

Security Features of Virtual Cards

The modern virtual card comes equipped with robust security features such as dynamic CVV codes, expiration dates, and customisable spending limits. These features not only safeguard against cyber threats but also offer precise control over transactions, making them an ideal option for travel bookings and corporate expense management.

Virtual Card Payments in the Travel Industry

Online travel agents (OTAs) have been quick to adopt virtual card payments due to their streamlined nature and enhanced security protocols. For travelers and travel planners, virtual cards offer a simplified and secure way to book accommodations, flights, and other services without exposing sensitive payment information.

Case Study: Virtual Cards as Implemented by Booking.com

Booking.com, a leading OTA, leverages virtual card technology to facilitate seamless payments between travelers and property owners. The platform generates virtual cards for guest reservations, which hoteliers can charge just like a standard credit card, ensuring a protected and hassle-free payment experience.

How to Use Virtual Cards Through an Online Payment Gateway

Using a virtual card through an online gateway is a straightforward process. Here’s a step-by-step guide for executing smooth and secure transactions:

• Obtain a virtual card from your provider or through the OTA platform
• At the time of checkout, select the virtual card as your payment option
• Enter the virtual card details into the payment gateway, just as you would with a physical card
• Ensure that the transaction amount does not exceed the card limit
• Complete the booking and save the transaction details for reference.

Elina PMS Can Handle Charging Virtual Cards From OTAs Seamlessly

For elina PMS customers, virtual cards can be transacted automatically, so it's important to check you have the right invoice / charging rule in place for that reservation, whether the rule is firing on a reservation, company, rate, or property level. Typically for channel bookings, the invoice and charging rule, ie charge when booking is made, or charge 50% on a certain date, or 100% on day of arrival, is linked to the rate mapped to the channel.

Tips for Keeping Transactions Secure

Always use virtual cards on trusted websites and keep your card details confidential. Frequently monitor transaction history to detect any unauthorised activity swiftly.

Best Practices for Using Virtual Cards

To fully benefit from using virtual cards, it's vital to stay informed about best practices:

• Verify that your chosen online gateway supports virtual card transactions
• Avoid sharing virtual card details over insecure channels
• Use virtual cards to streamline expense reporting and budget tracking.

Choosing the Right Online Gateway for Virtual Card Payments

When selecting an online payment gateway to process virtual card payments, prioritize those that offer robust security features, user-friendly interfaces, and dependable customer support. Gateways like Stripe and PayPal for their support of virtual card transactions.

Future of Virtual Cards in Online Transactions

The trajectory for virtual cards is on a steep incline. They are expected to become a mainstay in online transactions, particularly in the travel industry. As technology evolves, we may see even greater integration of virtual card systems into travel booking platforms, offering unmatched convenience and security.

Virtual Cards - Security and Convenience

Virtual cards are changing the face of online transactions, offering a blend of security, convenience, and control that is hard to match. For online travel agencies and savvy consumers alike, they present an opportunity to navigate the digital payment landscape with confidence. Embrace the future of finance with the strategic use of virtual cards through online gateways, taking a page from forward-thinking travel companies. 

Begin your journey into safer and smarter transactions today by adopting virtual card payments for your travel needs, and check your software set up to see where you can automate these virtual card payments, just like with standard credit cards, or other payment methods.