A virtual credit card is typically issued on a primary credit card. Unlike regular credit cards, Virtual cards are soft versions of your physical credit card that can be used for online purchases but have no physical presence.
All credit card information, including the card number, expiration date, CVV, and other specifics, is available online because the virtual card can only be used online. Additionally, you can customise the virtual credit card's spending limit using the electronic device on which it is installed.
What are virtual credit cards?
Banks and financial institutions offer virtual credit cards as a replica of your physical credit card, and they can be used for online transactions just like a regular credit card. No credit card charges are levied on virtual credit cards, and every primary cardholder can apply for a virtual credit card.Most credit card issuers, including IDFC FIRST Bank, provide virtual credit cards to facilitate consumer transactions and enhance security. IDFC FIRST Bank credit card holders have a wide range of insurance advantages, including lost card liability insurance, free lifetime credit card, personal accident insurance, and personal air accident insurance.
Features of virtual credit card
- Virtual credit cards offer security from any breach caused by an unsecured network connection.
- Virtual credit cards are only intended for one use and are only active for 48 hours.
- These credit cards support consumers' online identity protection.
- No extra credit card bill payments are required.
- Credit card companies can issue virtual credit cards without giving actual ones.
- A virtual credit card can be generated using the bank's online banking service.
- A virtual credit card can be used for transactions solely through your phone.
- Only primary cardholders can access virtual credit cards.
Advantages of virtual credit cards
Convenience
Since the virtual credit card doesn't exist in tangible form, you can save its information on your phone and use it to make purchases. As a result, you don't have to bear the inconveniences of carrying physical cards.Transaction limit
Virtual credit cards come with a defined credit limit, just like traditional credit cards. It has the same credit limit as the primary card. Users are allowed to make several transactions within this limit.Security
It's practically impossible for thieves to use the virtual card for fraudulent purposes because you don't have to swipe it to make payments. Hence, no data is stored in the POS or payment machine, keeping you safe from unauthorised transactions.How to use virtual credit cards?
- You can complete an online transaction using a virtual credit card. While some banks offer built-in browser extensions that enable virtual credit cards, others require you to enter your account on their website.
- Using your username and password, you can create a one-time token after logging in to your credit card account. It will include a unique security code and payment card number. Depending on the service provider, you can be given the option to specify an expiration date for your virtual credit card.
- You can also set a spending restriction, which is helpful if you're using a joint credit card.
- Now that you have the information for a virtual credit card, you are prepared to conduct an online transaction.
