In Custodia, physical cards and virtual cards are simply different ways to access the same spending account. They are not separate wallets, budgets, or balances.
Each individual card whether virtual or physical will have its own unique credentials (PAN, Expiry, CVV)
The core model remains consistent
- One account per user
- Activities define how the user can spend on that account
- All card types applied to the user’s account can be used for spend
This means a user may hold a physical card, one or more virtual cards, or both, and all of them draw from the same account and follow the same activity rules.
Shared Foundation: One Account, Multiple Cards
Before looking at the differences, it is important to clarify what does not change.
- There is a single account per user.
- Activities control where, how, and how much the user can spend.
- Physical and virtual cards are just different instruments connected to that same account.
- A transaction made with any card type is evaluated against the same activities and approvals.
Example:
If a user has an activity that allows travel spend, both their physical card and virtual card can be used for that travel expense, as long as the activity rules are met.
Physical Cards
A physical card is a tangible payment card that the user carries and can present in person.
Typical Use Cases
- In-store purchases
- Restaurants and cafes
- Hotels and check-in desks
- Taxis, Ride-shares, and transit kiosks
- Vendors that require card presentation
Benefits
Everyday, in-person spending
A user traveling for work can pay for meals, taxis, or incidentals by tapping or inserting their physical card, without needing a phone or browser.
Merchant compatibility
Some merchants still require a physical card to be presented, especially in hospitality or local retail environments.
Familiar experience
For many users, a physical card feels natural and reliable, particularly for frequent or high-volume daily spending.
View this article to see details on your physical card and how to activate it.
Virtual Cards
A virtual card exists digitally and has its own unique Card Number, Expiration, and Security Code.
- Online purchases
- Subscriptions and recurring charges
- Vendor payments where card details are entered manually
- Mobile wallets and in-app payments
Benefits
Immediate availability
A new employee can receive a virtual card instantly and begin spending before a physical card arrives
Safer online transactions
A user can assign a virtual card to a specific subscription or vendor, reducing exposure if card details are compromised
Better control for specific spend
Finance teams often prefer virtual cards for software subscriptions or one-off vendor payments because usage is easier to track and isolate
Example:
A marketing manager uses a virtual card exclusively for advertising platforms. If the vendor changes or the subscription ends, that card can be replaced without affecting other spend
View this article to see details on your virtual card.
Using Both Together
Many users benefit most from having both card types
Use the physical card for in-person and travel-related expenses. Use virtual cards for online purchases, subscriptions, and vendors
Because both card types are tied to the same account and governed by the same activities, there is no duplication of budgets or approvals
Example
A user books a subscription with their virtual card. There is an issue with the vendor which leads to the user having to lock the card. The user can still use their physical card until the issue is resolved
Key Takeaway
Physical cards and virtual cards serve different real-world needs, but they operate under a single, consistent account model
- One account per user
- Activities define allowed spend
- All card types on the account can be used interchangeably
- Each individual card whether virtual or physical will have its own unique credentials (PAN, Expiry, CVV)
The choice between physical and virtual cards is about convenience and context, not limitations or separate balances