
All You Need to Know About Virtual Credit Card Numbers
Virtual credit cards can be a boon in keeping your personal information safe during an online payment. These are temporary credit card numbers, allowing you to pay merchants more safely. Most issuers offer this facility due to the increasing number of online transactions.
Using a virtual credit card number can make your transactions more convenient and provide you with increased control. It minimises the risk of fraudulence and manages cash flow quicker. Read on to understand how these numbers work to make the most out of them.
What is a Virtual Credit Card Number?
It is a sequence of numbers issued by a credit card company when you shop online. Unlike physical credit cards, these cards provide instant utility for customers by generating a random 16-digit number. This protects the cardholder’s bank account-linked information.
Various credit card providers offer virtual credit cards to provide an additional layer of digital protection. Even if the website becomes vulnerable to hackers, your information stays intact. Here are the added benefits of using a virtual credit card:
- The added safety makes it more convenient for your utility, as many virtual credit card numbers can be used more than once.
- Your account statement will reflect your transaction by linking your virtual card with the credit card. This way, you can keep track of your virtual card-related expenses.
- You can add an expiration date and set a spending limit which adds to the flexibility while using a virtual card. This will help you better manage your finances and avoid overspending.
How It Works
Virtual credit cards are similar in function to normal credit cards. However, you can only use these cards in online transactions. Follow these steps to use a virtual credit card:
- Generate a virtual card number through your card issuer
- Use the number in place of the physical credit card number
How Can You Get a Virtual Credit Card?
If you have a credit card, you can gain access to a virtual credit card. Log in to your bank account and search for ‘Virtual Credit Card’. Before you apply for credit card apply for a virtual credit card, here are a few common eligibility criteria:
- No outstanding debt or payments due
- Issuers may require you to have an existing credit card account
- You may get a virtual card only if you are a primary cardholder with the issuer
Difference Between Virtual Credit Card Numbers and Regular Credit Card Numbers
A virtual credit card number acts as a substitute for an actual credit card. You can simply use the virtual card number online in place of your credit card to make a payment. Browse through the given table to know more about the differences between the two.
Basis | Virtual Credit Card | Regular Credit Card |
Physical Form | Digital presence only | A tangible physical card |
Security | High security with unique card numbers for each use | Standard security features like CVV and chip |
Usage | Typically used for online transactions | Used for both online and in-store transactions |
Expiration | Can set custom expiration dates for each transaction | Fixed expiration date as printed on the card |
Security | High security with unique card numbers for each use | Standard security features like CVV and chip |
Usage | Typically used for online transactions | Used for both online and in-store transactions |
Spending Limit | User-defined limits for each virtual card number | Overall credit limit as determined by the issuer |
How is It Different from Digital Wallets
Digital wallets are smartphone apps that are used to make payments. They are the digital version of physical wallets and store credit cards, tickets, boarding passes, loyalty cards, and more.
When you try to use a digital wallet to make a purchase using a stored card, a token serves as the replacement for the 16-digit card number.
The key difference is that virtual cards help keep your payment safe and secure. Digital wallets, however, can store your card information along with other documents. You can access your digital wallet through a smartphone, laptop, tablet, etc.
How Secure are These Cards
When a virtual credit card is activated by a card program associate, you can set up a customised PIN. Most card issuers ensure secure virtual transmission, resulting in the protection of your personal data.
Issuers can limit the data information accessible to fraudulent parties if you get scammed through phishing. Even if the virtual credit card number is seized due to a data breach, you don’t have to cancel the card. This means that you do not have to go through the hassle of resetting your card information for recurring payments.
The One Credit Card helps ensure safer transactions for you. Its full-stack mobile app sends alerts to notify you whenever you are nearing your budget and payment due date. With these notifications, you can track your finances and ensure that you do not overspend. In addition, you can earn up to 5X rewards on the top two spend categories each month and need not pay fees to redeem your points.
The One Credit Card is also a lifetime-free card. You do not have to pay any joining fees, annual fees, or hidden charges. Make a move towards financial independence and apply now! Enjoy all the perks securely and smartly.