A digital (or virtual) credit card is a digital version of a traditional credit card. It is a temporary credit card number that can be used online or over the phone. Just like traditional cards, digital cards have a credit card number, expiration date, and CVV, and are used in the same way.

Digital cards provide security benefits because merchants will only have access to the temporary card number, and so will protect your primary account number from fraud.

In addition to these security benefits, you can impose restrictions on these cards including:

• adding spending limits on the card
• only allowing certain types of purchases

Note however that digital cards cannot be used in settings where a physical card is required, for example in restaurants and hotels.

Lodged Digital Cards

Lodged digital cards provide the same functionality as regular digital cards, however they are better suited to corporate environments (e.g. corporate cards). Unlike individual corporate cards issued to employees, a lodged card is often held centrally by a company and it's used to pay for shared business expenses.

For example, if a company's employees frequently travel, a company would use a lodged card to book flights and accommodation, allowing them to keep the expenses centralized. A lodged card An sample use case of a lodged card is when a company uses it for book flights, hotels or other travel-related expenses.

A lodged card is a type of corporate or business card, used for centralizing and managing business expenses. Unlike individual corporate cards issued to employees, a lodged card is often held centrally by a company or travel agency, and it's used to pay for shared business expenses.

Regular digital cards are often used for one-time transactions, while lodged cards are more for centralized, recurring business expenses.

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Best Practices

For one time or limited use cards, the best practice is to terminate all cards once they have been used to minimize any risk of future use of the card