Here's everything to know about virtual credit cards

Business

09 Jun 2019

#FinancialBytes: All you need to know about virtual credit cards

Credit cards have become a popular cashless payment method because of the convenience they offer, especially for online transactions.

Though making online transactions using credit cards is convenient, card details are shared with merchant sites which might put the user's card information at risk of being compromised. And, this is where virtual credit cards come in.

Here's everything to know about virtual credit cards.

What exactly are virtual credit cards?

Simply put, virtual credit cards are like credit cards with no physical existence. These are either linked to the cardholder's physical credit card or bank account. With features similar to those of credit cards, virtual credit cards are designed to protect one's original card/account information.

Features

A few things to know about virtual credit cards

A few things to know about virtual credit cards

Just like a credit card, a virtual credit card comes with all the details required for making online transactions, including card number, user name, expiry date, CVV number, etc.

However, unlike traditional credit cards, virtual credit cards are generated by users.

Also, the VCCs are generally provided for free by banks; these come with no joining or annual fees.

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Limit

Virtual credit cards come with a specified limit

If the VCC is linked to one's credit card as an add-on credit card, its credit limit is either decided by the cardholder or the concerned bank (depending on the individual's eligibility).

If the VCC is linked to the user's savings account, they should load the card with an amount of their choice.

However, VCC's limit is usually small compared to regular credit cards.

Validity of the virtual credit cards

Virtual credit cards are generally meant for one-time use. The validity of VCCs is less; these usually expire within 24-48 hours. Even if the balance isn't used, the VCC expires after a specified time and the remaining balance is credited back to the original source.

Security

VCCs, one of the most secure online payment options

VCCs, one of the most secure online payment options

Virtual credit cards are one of the safest payment options for online transactions.

VCCs are just temporary cards and it's not possible to track a VCC back to the primary credit card or the customer's bank account; these cards cannot be cloned.

Even if VCCs are hacked, cybercriminals can't use them beyond the loaded balance, which is usually small, or after its validity expires.

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Most asked questions

What are virtual credit cards? What is their use?

How to create virtual credit card?

Can I use virtual credit card at offline stores?

Which banks in India offer virtual credit cards?

More questions

What are virtual credit cards? What is their use?

Asked 2019-06-09 07:49:06 by Sanvi Gavde

Answered by NewsBytes

Nowadays, credit card fraud is on the rise. Users provide and put at risk their credit card details while making online transactions; cybercriminals can steal and misuse, especially, their hefty credit limits. To avoid this situation, one can use virtual credit cards that have no physical existence. These are temporary credit cards designed to protect one's original card/account information.

How to create virtual credit card?

Asked 2019-06-09 07:49:06 by Hemant Rangarajan

Answered by NewsBytes

Virtual credit cards are temporary cards that can be generated via internet banking by customers of almost all major banks. One can also visit their nearest bank branch for the same.

Can I use virtual credit card at offline stores?

Asked 2019-06-09 07:49:06 by Hemant Jaiteley

Answered by NewsBytes

No. Virtual credit cards are meant for making online transactions. So, one cannot use these at offline stores; they can be used only for making payments/transactions online.

Which banks in India offer virtual credit cards?

Asked 2019-06-09 07:49:06 by Rajesh Venkatesan

Answered by NewsBytes

In India, several major banks provide virtual credit cards. For example, State Bank of India has "SBI Virtual Card", HDFC Bank provides "HDFC NetSafe virtual cards", and Kotak Mahindra Bank offers "Kotak Netc@rd Virtual Card".

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