Virtual card payment
A virtual card payment is a digital prepaid card, sent by email or text, that holds your settlement money and works online like a debit card.
Also called: virtual prepaid card, digital prepaid card, virtual Visa card, virtual Mastercard
A virtual card payment is a digital prepaid card, sent by email or text, that holds your settlement money and works online like a debit card.
What it means
A virtual card payment is a settlement payment loaded onto a prepaid card that exists digitally. The administrator emails or texts you a link. You follow it to activate the card and get a card number, expiration date and security code to use online or add to a phone wallet. Some settlements also let you ask for a plastic card.
It is a prepaid card, not a bank account. The balance is your settlement amount, and the card has its own terms: where it works, an expiration date and possible fees if you leave it unused. The card issuer sets those terms, not the court or the defendant. The Consumer Financial Protection Bureau lists many fees prepaid cards can charge, so read the cardholder agreement.
Virtual cards are one of several payment options. Others include checks, direct deposit, PayPal, Venmo and Zelle. The claim form shows which are offered.
What it means for you
A virtual card is fast, but it is the option most easily forgotten. Watch for the email, add the card to your phone wallet or spend it soon, and note the expiration date. If you would rather have cash in a bank account, pick direct deposit, PayPal or a check instead. Never pay to receive or "activate" a card, and do not enter card details on a site you reached from a message you were not expecting. The official settlement website should explain how payments are sent.
Example
Say you choose a virtual Visa card on your claim form. After final approval, an email arrives from the administrator with a link. You open it, confirm your email and ZIP code, and see a card number and expiration date. You add the card to your phone wallet and use it that day for an online order.
FAQ
It can be. Real ones come from the administrator named in the court-approved notice, and the claim form offered the option. Check the sender against the official settlement website, and never pay a fee to receive a card. The FTC says it never requires upfront fees for its refunds.
Contact the administrator or the card issuer named in the email as soon as you notice. Whether expired funds can be reissued depends on the settlement and the card terms.
Related terms
- CFPB, What types of fees do prepaid cards typically charge?
- FTC, Refund Programs: Frequently Asked Questions
Updated Oct 18, 2026. Plain-English definitions for general information — not legal or tax advice.