Virtual Credit Card: The use of credit cards has become very common in today's time, but given the increasing cases of digital fraud, there is often a fear that some fraud may happen. In such a situation, credit cards should be used very thoughtfully anywhere. Given the increasing cases of online fraud and data theft, Virtual Credit Card (Virtual Credit Card - VCC) has emerged as a safe and smart option. But what is it and why is it considered better than a common credit card? Let's understand in detail.

What is a virtual credit card?

Virtual Credit Card (VCC) is a digital card that is issued by the bank or credit card provider by linking it to your existing credit card or bank account. It provides a temporary or one-time use card number, which you can use for online shopping or transactions.

What is its specialty?

It is not like a physical card but exists only in digital form. Which can be created with different card numbers for every transaction. Virtual credit card expires after a fixed time, which reduces the risk of fraud. It can be generated instantly through an online banking app or net banking.

How different is a virtual credit card from a common credit card?

Feature Virtual Credit Card (VCC) Common Credit Card (Physical Credit Card)
Need for physical card ❌ No ✅ Yes
Use of card number ✅ New number every time ❌ Fixed number
Security ✅ More secure ⚠️ Risk of fraud
Validity 🕒 For a limited time ⏳ For a long time
Suitable for online shopping ✅ Yes, more secure ✅ Yes
Can you withdraw money from an ATM? ❌ No ✅ Yes

Advantages of Virtual Credit Card

Protection from online fraud

A virtual credit card gives a different card number for every transaction. Even if this number gets leaked on a fraudulent platform, it cannot be used again.

No risk of card information being stolen

Many times when we shop online, we have to save the card details on the website. There is no risk in a virtual card because it expires after one use.

Limited spending and budget control

In a virtual credit card, you can set a limit yourself, so that there will be no unnecessary overspending. This helps in controlling the budget.

Secure payment on any platform

If you are shopping from an unknown or new website and are apprehensive about security, then you can use a virtual credit card. This will keep your real credit card safe.

Payment even without a physical card

If your physical credit card is lost or you do not have it, you can still make payments with a virtual credit card.

How to create a virtual credit card?

Log in to net banking or mobile app.

Select the virtual credit card option.

Set your maximum spending limit.

Verify with OTP or password and generate the card.

The new card number, CVV, and expiry date will be in front of you, which you can use for online payment.

When to use a virtual credit card?

For online shopping

For payment on suspicious websites

To take a free trial (so that you are not charged later)

For international transactions

For subscription services (Netflix, Amazon Prime, etc.)

Are there any disadvantages of virtual credit cards?

Cannot withdraw money from ATM.
Cannot be used in offline stores.
A new card has to be generated every time.

Disclaimer: This content has been sourced and edited from Zee Business. While we have made modifications for clarity and presentation, the original content belongs to its respective authors and website. We do not claim ownership of the content.