Unlike the normal credit cards, a virtual card is just an add on credit card, issued on your primary card. Like the name states, a virtual credit card literally cannot be physically held. You as a user can just use an online virtual card, meaning all the card details like card number, CVV, expiry date, etc are available online. In simpler terms, a virtual card is basically an online version of your card, which you can use online by entering the details mentioned on the virtual card on the payment platform. Still not able to understand? Suppose you availed a Kotak credit card, now the issuer after providing you the card physically may also provide you a virtual Kotak credit card that you can access through the Kotak’s mobile app. Note that through the Kotak mobile app, you can also make the payment of your Kotak credit card bill payment and the same is true for any other credit card you opt for.
Virtual credit card – All the features you must be well-versed with
Besides being literally a virtual version, virtual card comes with the listed features –
∙ Virtual cards protect you from any kind of data breach via the unsecure network connection.
∙ Such cards assist you as a user to safeguard your identity online.
∙ Virtual cards may be created through the bank’s app or net banking facility.
∙ You do not require making additional payments for availing a virtual credit card.
∙ Virtual cards do not require being physically issued by the card providers.
∙ You just require using your phone to transact via the virtual card.
∙ It must be remembered that virtual cards can be issued to just primary credit card users.
Virtual credit card – What are the important benefits linked with it you must be aware of?
Virtual cards come with multiple benefits. Few of the crucial benefits include –
∙ Virtual cards are safer as compared to other cards as they expose no credentials to the concerned vendor.
∙ Upon requesting the financial institution, even a non-credit card user can opt for a virtual card.
∙ Such cards smoothen and provide great ease in the process of online credit card payments and transactions for you as a customer.
∙ As virtual cards are offered on the online platform, you as a user can easily access your card details instantly whenever the requirement comes.
∙ In the case your virtual card is expired and there’s an unutilised credit card limit on your credit card, it may be transferred to your main or primary card, thus ensuring comprehensive usage of your card’s limit.
∙ Credit card issuers or banks offer virtual cards with zero requirement for paying any additional fees.
∙ Virtual cards can be utilised for all the transactions whether international or national.
Are virtual cards safe?
Mentioned here are some of the crucial reasons explaining how a virtual card is totally safe to use –
∙ As virtual credit cards are temporary and may be disposed of after a specific number of transactions, they tend to offer additional security levels.
∙ If by chance, the virtual credit card details fall in any fraudster’s hand, you can easily cancel the card through the mobile app without the need for closing the credit card.
∙ At times, virtual cards may be designed for one time usage also. In such scenarios, if a fraudster steals a virtual card’s details in a data breach or by using unsecured net connection, the virtual card would become invalid automatically.
How can you use the virtual card?
To use your virtual credit card, you must initially checkout if your issuer is providing such a card. If it does, you can opt for the same by placing a request online for generating the card. On processing your request successfully, you will get your card number, which may be generated randomly along the security code and expiration date.
After getting all the details, you can easily use the virtual card to check any of your transactions online. Just follow the below listed simple steps to make the required transaction using the virtual card –
∙ Input the virtual card number
∙ Input the card’s validity date
∙ Input the OTP sent on your phone number
∙ Confirm this transaction and your final payment will be done.
This same transaction will be noted on your credit card statement just as any regular card transaction appears on the statement.
So virtual card come with any disadvantages?
While virtual cards work absolutely well in most scenarios, there are specific cases where they might backfire. For example, if you want to request for a refund for payment from retailer and your virtual card expires, then you may not be able to receive the payment on the card. So, in the case, your card expires, then you will be forced to receive the refund on your store credit instead.
Example of any virtual credit card?
One of the best examples of a virtual credit card is PayTm HDFC digital credit card. Paytm provides a co-branded digital card with HDFC. Here are all the important benefits that you may get by availing the card –
∙ As a monthly membership charge, you must pay Rs 29. This may be waived if you spend an amount of Rs 5,000.
∙ 2 per cent cashback on spending on Paytm mall, travel tickets and booking.
∙ Cashback of 1 per cent on other spends like bill payments, recharges, etc. through the PayTm app.
∙ 0.5 per cent cash back on other retail spends via Paytm app.
∙ Cash back of 1 per cent as fuel surcharge waiver.
In conclusion
Virtual cards are looked upon as better in many ways in relation to traditional or customary credit cards. Such cards lower the risk of frauds on any card as they do not reveal your card details or credentials to anyone. Moreover, virtual cards are valid just for limited transactions and hence may be disposed of very easily. The chance of any fraud or data theft is minimal if you use a virtual credit card.
