What is a Virtual Credit Card?
A virtual credit card is a digital version of your physical card. It includes a 16-digit number, CVV, and expiry date, just like your regular card! Most virtual cards are temporary and act as add-ons to your main card, offering a limited number of transactions.
How Does a Virtual Credit Card Work?
- Secure One-Time Password (OTP): When using a virtual card, an OTP is generated for each transaction. This OTP is valid for a few minutes, reducing the risk of fraud as it can’t be reused.
- Digital-Only Use: Unlike physical cards, virtual credit cards are primarily for online purchases.
How to Use a Virtual Credit Card: Step-by-Step
1. Choose Your Website: Go to the site where you want to make a payment.
2. Select Virtual Card Option: Opt for the virtual credit card at checkout.
3. Enter Details: Input your virtual card number, CVV, and expiry date.
4. Verify with OTP: You’ll receive an OTP on your device, valid for a short time.
5. Complete the Payment: Enter the OTP to finish the transaction. Done!
Benefits of Virtual Credit Cards
- Easy to Use: Access them directly from your phone or online account—no need for a physical card!
- Enhanced Security: Eliminates the risk of losing a physical card and adds extra protection with fraud prevention tools.
- Spending Control: Set spending limits and expiration dates to manage finances better and avoid overspending.
Drawbacks of Virtual Credit Cards
- Limited Use: Virtual cards are mainly for online shopping; you can’t use them offline.
- Limited Acceptance: Not all online stores accept virtual cards, so check compatibility.
- Short Validity: Typically, virtual cards last 24-48 hours (this varies by issuer).