A virtual credit card downloaded on a smartphone for online transactions

Are Virtual Credit Cards the Future?

Q: What is a Virtual Credit Card?

It is an add-on card to your primary credit card. It is a digital resource that allows you to make payments.

Q: How do I get a Virtual Credit Card?

Contact your credit card issuer and request a virtual credit card. Most credit card institutions issue virtual credit cards.

Q: Are Virtual Credit Cards safe?

Virtual credit cards follow a significant amount of safety protocols during transactions. The single-use feature means you can use your virtual card details once and have them changed after the transaction is complete.

Q: What sort of transactions can I make with a Virtual Credit Card?

It is mainly meant for online transactions.

Q: Do Virtual Credit Cards have drawbacks?

The only drawback is when you’re seeking a refund for a transaction. It might be difficult for the merchant to issue the refund directly to your virtual credit card.

Team PaisaSimple • July 3, 2024

As many of us are getting comfortable with credit cards, it’s time to peek into a future where all financial transactions are digital or virtual. It’s time to talk about virtual credit cards.

With more banks embracing the idea of virtual credit cards, we must ask ourselves if they are the future of credit transactions. We’ve seen hard cash gradually phasing out the convenient UPI. The keyword here is ‘convenience.’ Convenience drives decisions.

As more of us gravitate towards a virtual credit card, are we moving towards a new digital revolution for transactions?

Before we answer this question, we need to understand everything there is to know about virtual credit cards.

Virtual Credit Cards and Their Features

Virtual credit cards are credit cards in a digital form. They are similar to traditional physical credit cards, except for their digital form factor. The features that distinguish a virtual credit card from its physical counterpart are:

Availability

Since you do not need to carry a physical card, your virtual cc is always readily available for payments. Applying for one is also a quick, seamless process.

Made for online use

These cards are specifically created for online use. They are targeted towards people who prefer online shopping and subscriptions, with added security measures.

Improved security

Virtual credit cards alleviate the chances of unauthorised transactions. They come with the option of single-use transactions to safeguard you from phishing or fraud. Since they are available only online, the risk of misuse is mitigated.

How do Virtual Credit Cards Work?

The virtual credit card is a digital version of your traditional credit card. You can make transactions with a unique credit card number without having to reveal your original card details.

To make a purchase, simply enter your virtual credit card number and the CVV. You will receive an OTP on your registered phone number. Enter the OTP to confirm the transaction, and you’ve used your card for a purchase.

Benefits of a Virtual Credit Card

It is a safer option than physical credit cards because your card details are not revealed during the transaction.
It can be immediately blocked if you suspect your card details are compromised.
The virtual credit cards are usually issued without additional charge to the cardholder.
In the event of the card’s expiry, its limit is transferred to your primary card.

How Safe are Virtual Credit Cards?

A virtual credit card has a limited usage period. Hence, it gives you peace of mind from misuse.

If your card details get leaked, you can cancel that card without closing your credit card account. You can ask for a replacement card from your card issuer; the process is quick and seamless.

The option of a single-use virtual card is one of their biggest features. Even if your card details are stolen, they become redundant.

Conclusion

Finally, we come to ask if virtual credit cards are the future of credit transactions. Well, why shouldn’t they be? In a time where credit card frauds are rising as you read this blog, a virtual credit card offers an added layer of security without additional cost or decreased functionality.

Moreover, India’s digital efforts have increased the number of smartphone users in every household. Virtual cc makes it easy for you to transact without needing a physical card or cash. So, why not use a virtual credit card?

The ubiquity of UPI proves that convenience at your fingertips will be embraced. Therefore, it won’t be a stretch to say virtual credit cards are here to stay and are the future of credit transactions.