Everything You Should know about Virtual Credit Cards – Validity, Usage and How to Use

Virtual Credit Cards

India’s credit card segment is predicted to maintain a steady CAGR of 25% between 2020 and 2025. There is a continued interest in the functioning of virtual credit cards or VCC as well as more individuals embrace these cards as a mode of transaction. These virtual cards are digital and help make any online payment unlike their physical counterparts. They also offer users most of the facilities that a traditional credit card does.

Understanding virtual credit cards

Virtual credit cards are payment tools designed explicitly for transacting online. Since they have no physical form, users cannot swipe them at brick and mortar outlets. Nevertheless, a VCC comes with a specific card number, validity date, and CVV similar to ordinary credit cards.

The primary reason to migrate to using such a VCC instead of a physical one when making online transactions is that the former is safer and more secure to use. The risk of losing valuable credit card data online to hackers or other fraudulent entities thus minimizes significantly.

Features and benefits of using a virtual card

Physical credit card owners need to avail virtual cards too. Doing so can be cited as necessary because of the following factors – 

1- Virtual credit cards offer better security

Individuals can choose whether they want to use a VCC just once or multiple times. If you opt for these cards, their validity will expire after a single online transaction is complete. Thus, a third party cannot misuse this virtual mode of payment or benefit from such cards post such transactions. As a cardholder, one must, however, be more vigilant and know about the types of credit card fraud and how to avoid them for improved safety.

2- Limited validity

Another effective security feature of virtual credit cards is their limited validity periods. Most of these financial products remain usable between 24 and 48 hours from sanction. It further reduces the risk of fraudulent transactions online, as the window for transactions is significantly limited when compared to standard credit cards.

3- Credit limit availability

If you intend to use the VCC for several transactions, such a card can allow for a pre-sanctioned limit similar to a physical card.

4- Instant approval and use

Users can apply for a VCC online and start utilising its benefits immediately. On the other hand, card providers often take a while to approve physical credit cards.

5- Instantaneous blocking facility

If you think your virtual credit card’s information has been compromised, you can initiate a simple procedure to block further transactions using the same. Such a blocking facility is readily available for these cards online.

6- International transactions enabled

Depending on the financial institution, your physical credit card provider may or may not support transactions at international outlets. Nevertheless, VCCs do not come with such restrictions. With such a card, you can easily fund purchases on both national and international online portals. 

Thus, similar to a physical card, a cardholder needs to choose the right virtual credit card for himself/herself. Doing so should further maximise the benefits it comes with. 

How can you use a VCC?

You can use a credit card to improve your credit scores, irrespective of whether it is a physical or virtual one. If you possess a VCC, here are some of the steps to follow to use it for online payment – 

  1. Select the product or service you want to purchase and select credit card as the payment option.
  2. Input your VCC number.
  3. Enter details regarding this card’s validity.
  4. When you click on proceed, an OTP will be sent to your registered phone number. Enter this OTP to verify your card details.
  5. Once verified, you can make payment to complete the transaction.

Any unused credit at the end of such transactions is transferred back to the limit on your initial credit card. Moreover, your next month’s statement will carry all the details regarding this online expenditure and credit card settlement, if any.

Certain cards, such as the SuperCard, come with robust security features, which protect users against cybercrimes and fraudulent transactions. Hence, individuals owning such cards need not necessarily opt for VCCs to safeguard their online payments.

The card provider also brings pre-approved offers to simplify the credit availing process significantly. These offers are available on a range of credit options, such as credit cards, personal loans, and business loans. You can check your pre-approved offer by submitting details, such as your name and phone number.

Whenever you use credit or debit cards to pay for online purchases, safety should be a primary concern. Virtual cards can thus be among the best ways to prevent theft of confidential financial information when transacting digitally.