Virtual prepaid cards for hotel bookings and car rentals

Virtual prepaid cards are becoming an essential tool for travelers. They solve multiple problems at once: protecting funds, simplifying payments, and helping manage expenses. Let’s break down how they work.

Understanding the difference: prepaid cards vs. virtual cards

A virtual prepaid card is a digital card with a fixed balance issued by a financial service provider. Users load funds onto the card and can make purchases online or even in physical stores if the card supports Apple Pay or Google Pay.

A standard virtual card is linked to a bank account, meaning that if its details fall into the wrong hands, fraudsters could access all your funds. In contrast, an instant virtual credit card offers a more secure alternative, as it is not directly tied to a primary bank account. If its details are compromised, only the preloaded amount is at risk, ensuring that the user’s main funds remain protected.

A prepaid card, on the other hand, is limited to the amount loaded onto it. You can’t overdraft, and you can’t spend more than what’s on the card. This makes it particularly useful for significant expenses, such as hotel bookings or car rentals. With PSTNET’s prepaid cards, users can set their own limits, providing flexible control over travel spending.

Security when renting a car or booking a hotel

Hotels and rental companies typically place a hold (deposit) on your card. If you use your primary card, these funds can be locked for days — or even weeks. Refunds might take time to process, and banks don’t always resolve these issues quickly.

A prepaid card makes this process simpler. The user loads only the necessary deposit amount. If the company holds the funds, it won’t affect the main account.

For instance, imagine a traveler books a hotel abroad, and the hotel places a $500 deposit hold. If they use a debit card, this amount temporarily disappears from their primary account, potentially causing inconvenience. With a prepaid card, the hold applies only to the card itself, leaving the main account untouched.

Expense management while traveling

Spending directly from a primary bank account can make it easy to lose track of expenses. A virtual prepaid card acts as a separate budget. Loading a fixed amount onto the card helps prevent overspending.

For example, a tourist visits a country with a high exchange rate. Using a standard bank card might lead to unexpected fees when converted to U.S. dollars. A prepaid card with a fixed amount ensures they stay within budget.

How to choose a prepaid card

The key factor is limits. Many providers offer cards with a restricted balance cap, which may not be sufficient for car rentals or hotel deposits. It’s important to choose a card that allows higher loads or a provider that lets users decide how much to deposit.

Additionally, check whether the card supports major international payment systems. Not all providers work with Visa or Mastercard, and some countries accept only specific card networks.

To sum up

Virtual prepaid cards are a convenient tool for travelers. They protect funds, help manage expenses, and simplify bookings. The key is to choose a card with appropriate limits and compatibility with international payment systems.

Author Profile

Adam Regan: Deputy Editor

Features and account management. 3 years media experience. Previously covered features for online and print editions.

Email Adam@MarkMeets.com