How Does A Virtual Card Work?
A virtual card is a digital version of your credit or debit card. Just like your physical card, it also has a card number, expiry date, and CVV number but it only exists online. Most people use virtual cards for online subscriptions because it offers control and security.
Virtual Cards enable users to:
- Have control over spending
- Instantly freeze or delete their card
- Avoid exposing your bank details
While these make them powerful and efficient tools with numerous benefits, they do not automatically cancel subscriptions linked to them.
Why Cancelling a Virtual Card is Not Enough
Some people tend to believe that freezing or deleting their card cancels their subscription. This however is a wrong approach and is far from the truth. In reality, your subscriptions are managed by the service provider and not your virtual card.
Here is what happens when you delete your virtual card:
- The subscription remains active
- The platform attempts to charge you and fails and may retry multiple times
- You could lose access to the platform unexpectedly without formally cancelling it
- Your account may get restricted or terminated which may be annoying if you want to return.
That’s why the correct way to cancel a subscription starts from the platform you subscribed to.
How to Identify and Manage Subscriptions on Your Virtual Card
Sometimes you lose track of the platforms you are subscribed to and get unexpected charges. These subscriptions can quietly drain your money if you are not paying attention. That's why it is important to identify and manage your subscriptions. To identify subscriptions, you will need to look through your transaction history and check for repeated deduction from the same merchant on a weekly or monthly basis.
Managing subscriptions isn’t just about cancelling them rather it entails:
- Tracking what you are paying for
- Preventing unwanted renewals
- Controlling when payments go through
- Organizing your financial commitments
Virtual cards provide the means to do all of this in ways your physical card cannot.
Step-By-Step Guide to Cancelling a Subscription Properly
- Log into the platform you subscribed to
- Go to account settings and look for sections like: “Account”, “Billing”, “Subscription” and “Payment Settings”
- Locate the subscription option where you see details such as the subscription type which could be monthly or yearly, renewal date and, payment method
- Click “Cancel Subscription”. You might be asked why you are cancelling and if you want to pause instead.
- Check for an email or message that confirms cancellation.
Another way you can cancel your subscription is directly from the playstore or appstore. This method is effective if you subscribed through your phone instead of directly on a website.
Cancelling Virtual Card Subscriptions From Playstore
- Open your playstore
- Tap your profile icon
- Go to payments and subscription
- Select subscription
- Choose the app and click on cancel
Cancelling Virtual Card Subscriptions From Appstore
- Open settings
- Tap your name
- Select subscriptions
- Choose the active subscription and cancel
Final Thoughts
Virtual cards are efficient tools for managing online payments. However they don’t replace subscription management. By following the steps in this guide, you can avoid hidden charges, stay financially organized and effectively manage your subscriptions on your virtual card.
