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Online banks have many perks you can’t find at traditional banks, like higher rates and lower fees. Many of these banks also offer virtual debit cards.
You don’t need to wait for a new card in the mail to start spending. With a virtual debit card, you can even leave your wallet at home. These digital cards let you make payments (both online and in person) without a physical card.
Here’s everything you need to know about virtual debit cards, including some of our top picks for banks that offer them.
Best online bank accounts with virtual debit cards
- Axos: Best for customer support
- Chime: Best for fee-free banking
- Current: Best for building credit
- SoFi: Best for generous cash back
- Wise: Best for international travelers
1. Axos Bank: Best for customer support
Axos Bank’s Rewards Checking account is an online high-interest checking account with an APY of up to 3.30%. You can easily manage your account through Axos’ all-in-one mobile platform. You’ll also qualify for unlimited ATM fee reimbursements on withdrawals made domestically.
There’s no monthly maintenance fee, but you need at least $50 to open an account.
To earn the highest interest rate, you’ll need to set up direct deposit, use your Axos Visa® Debit Card (or sign up for Personal Finance Manager), and add a loan payment and investing account. Customer support is available 24/7 by phone or through the secure online chat feature.
Pros:
- Generous APY
- No monthly maintenance or overdraft fees
- New account bonus
- User-friendly mobile app
- 24/7 customer support
Cons:
- You need multiple accounts and a minimum balance to reach the highest APY
- $50 initial balance needed
- No physical branches
2. Chime: Best for fee-free banking
If you’re looking for a straightforward, fee-free checking account, Chime is a good bet. Chime’s online checking account has no monthly service fees, no minimum balance fees, and no overdraft fees. You’ll also get overdraft protection and direct deposit up to two days early.
Once you sign up, you’ll receive a temporary Chime® Visa® Debit card you can use immediately. You’ll get a physical card in the mail a week or two later. You can add your Chime Debit Card to your mobile wallet to enjoy the convenience of paying digitally.
Each debit card has security perks, including daily balance updates, real-time transaction alerts, Visa Zero Liability protection, and the option to block transactions if you lose your card. Chime users have access to over 60,000 fee-free ATMs. You can also deposit cash at any Walgreens location.
Looking for other options? Here are some of the best fee-free savings accounts.
Pros:
- No monthly maintenance or minimum balance fees
- No overdraft fees
- Early direct deposits
- Overdraft protection
- Extensive ATM network
Cons:
- Limited account offerings
- Fees may apply for cash deposits
- No physical branch access
3. Current: Best for building credit
Current is striving to be a one-stop shop for your banking needs. Their bank account — a hybrid between a checking and savings account — comes with a virtual debit card and the ability to create Savings Pods for different goals.
One unique aspect of Current’s account is the ability to build credit. You can pair the debit card with Current’s secured charge card, allowing you to build a positive credit history and earn cash back every time you swipe. You’ll receive the card digitally when you open an account, and you can continue using it once you receive a physical card in the mail.
This account has no monthly fees, no overdraft fees, and no minimum monthly balance requirements. You can get direct deposit up to two days earlier and access 40,000+ fee-free ATMs. Plus, you can earn up to 4.00% APY with the Savings Pods. Current has one of the best apps to help you reach your savings goals.
Pros:
- No credit check to open an account
- Earn up to 4.00% APY with Savings Pods
- Get direct deposits up to two days sooner
- No maintenance fees or minimum balance fees
- Over 40,000 in-network ATMs
Cons:
- Fees apply for cash deposits
- Limits on earning the highest APY
- No physical locations
4. SoFi: Best for generous cash back
SoFi offers a checking and saving account bundle with a cash back bonus, no account fees, and no balance minimums. You can earn up to 0.50% APY on your checking balance and up to 4.50% APY on your savings balance.
Like other online banks, SoFi offers overdraft protection, access to a robust fee-free ATM network, and early direct deposit. What sets SoFi’s bank account apart is the ability to earn up to 15% cash back when you use your debit card to make select purchases. You can also automatically round up your debit purchases and transfer the money to your savings.
Pros:
- Cash bonus for new account holders
- Early direct deposit
- Overdraft protection
- Generous cash back rewards
Cons:
- Must open both checking and savings account
- Direct deposit required to earn the highest APY
- No physical branches
5. Wise: Best for international travelers
Wise is an international money transfer service offering an online account. You can spend, withdraw, or save in more than 40 currencies at the live exchange rate. When you sign up for an account, you can open a virtual debit card, which you can use in many countries.
Plus, there’s the option to send currency to another country without paying a fortune. Users who opt into the interest feature can earn up to 4.33% APY on their money.
There’s a one-time $9 fee to order a debit card. You can make two free ATM withdrawals of up to $100 each month. After that, each withdrawal has a $1.50 fee. You can set up a virtual card in your digital wallet and activate it immediately. Wise also sends account holders a physical card in the mail.
Pros:
- Minimal fees on international transfers
- High APY on account balances
- Lock and unlock your card in real-time for added security
Cons:
- Debit card opening fee
- ATM fees
- No cash delivery options
- No physical branches
How does an online bank account with a virtual debit card work?
There aren’t many differences between traditional debit cards and virtual debit cards.
You use both the same way — but as their name suggests, virtual debit cards only live in your digital wallet. You’ll get your 16-digit card number, expiration date, and CVV number when you receive your card. You can use your virtual debit card online or anywhere that accepts QR codes or allows you to tap to pay.
It’s extremely easy to make payments with a virtual debit card. But if you want to withdraw or deposit cash, it may take a bit more work. Some ATMs accept contactless transactions, or you can use your bank’s mobile app to transfer funds between accounts.
While it may seem odd not to have the physical card on hand, virtual debit cards are much more secure.
“Virtual cards cannot be lost or stolen because they are not real cards. Furthermore, you can limit how much you can spend and select which stores accept payments made with a virtual card,” says Jeremy Biberdorf, financial expert and founder of Modest Money.
If you’re looking for other bank accounts that don’t charge fees, here are some options.
The bottom line
Virtual debit cards offer the best of both worlds. They provide a convenient way to access your funds and protect your hard-earned money. But before opening an account, shop around, and compare the fees, rates, and benefits each bank offers to choose the best fit.
Opinions expressed are author’s alone, not those of any bank, credit card issuer, or other entity. This content has not been reviewed, approved, or otherwise endorsed by any of the entities included in the post.