Physical Card vs Virtual Card

Both physical cards and virtual cards let you tap, swipe, or pay online—but they’re used a bit differently and shine in different situations.

A physical card is the plastic card in your wallet.

A virtual card is a digital card number stored in an app or wallet, often used for online or mobile payments.

Where KOHO Essential Fits In

Your get both a Prepaid Mastercard and Virtual card for everyday spending and online shopping,

With KOHO Essential Plan, you get:

• It has a low monthly plan fee that can be waived when you set up direct deposit or add +$1,000.

• Get your Virtual Card to start spending online right away, securely.

• Use a prepaid Mastercard® for groceries, bills, subscriptions, and travel.

• Grow your savings with a 2% interest savings rate on your entire balance.

• Earn 1% cash back on groceries, eating & drinking, and transportation.

• You can add Credit Building for $10/month, it's an affordable way to build your credit history.

• Enjoy unlimited transactions and free e-transfers (never worry about fees when sending money to someone again).

What is a Physical Card?

A physical card is the standard plastic (or metal) card you carry:

• Has your card number, expiry date, and sometimes your name printed on it

• Used for tapping, inserting, or swiping in stores

• Often works at ATMs to withdraw cash (depending on the issuer)

• Easy to understand and use—just like any regular bank or credit card

Pros:

• Works almost everywhere in person

• No phone or battery needed

• Familiar and simple

Cons:

• Can be lost, stolen, or skimmed

• You have to carry it with you

• Card details are visible if someone gets hold of it

What is a Virtual Card?

A virtual card is a digital version of a card:

• You get a card number, expiry, and CVV that live in an app or digital wallet

• Used mainly for online purchases and in-app payments, and sometimes for mobile tap-to-pay

• Often can be replaced or refreshed more easily if something goes wrong

Pros:

• Great for online shopping and subscriptions

• Can be more secure—you’re not exposing a physical card everywhere

• Easy to freeze or change without waiting for new plastic

Cons:

• You generally need a phone and internet to access details

• Not all setups work for in-person payments if the merchant can’t accept mobile wallets

• If your phone dies, you lose access until it’s charged again

Which Should You Use?

For most people, the best setup is both:

• Use a physical card for:

  • Everyday in-store purchases

  • Situations where merchants don’t support tap-to-pay or digital wallets

• Use a virtual card or stored card details for:

  • Online shopping and subscriptions

  • Travel bookings and apps

  • Merchants you don’t fully trust (easier to update or replace)