Virtual Credit Cards in India: Features, Benefits and Use
What are Virtual Credit Cards?
Virtual credit cards are temporary 16-digit numbers that store credit information. These credit cards function the same way as a normal credit card with the valid card number, CVV number and expiry date. Users can perform transactions online by entering the necessary details. It reduces the risk of failed transactions due to network lags and also eliminates the chances of illegal usage by cloning. Unlike credit cards which allow you for offline purchases as well, virtual credit cards can only be used for online transactions. However, they negate the possibility of credit card losses or being misused by anybody else, thus securing the payment.
How Does a Virtual Credit Card Work?
Unlike a normal credit card, virtual credit cards use an app to generate a unique credit card number, better known as a token for every transaction, then the token is sent to the retailer and bank to confirm the transaction. These tokens can’t be re-used, minimizing the risk of potential theft or fraud.
Features and Benefits of Virtual Credit Cards
Virtual credit cards enable instantaneous online payments and allow users to choose their credit limit or merchant types. Some salient features of these cards are as follows:
1. Security
Virtual credit cards can only be accessed by the user’s personal devices and can only be accessed online, thus making it safe for customers.
2. Ease of Access and Creation
Thanks to recent advancement, Virtual Credit cards can be created instantly, and you can access them from anywhere online to make transactions.
3. Fulfilling Business Needs
Virtual credit cards make it easy for organisations as it facilitates payments via a single platform which allows businesses to clear financial bottlenecks easily, it also gives instant access to payment and receipts.
4. Easy Cancellation
You can easily cancel your virtual credit card from your smartphone or any other device from anywhere with just a few clicks.
5. Instant Availability
Virtual Credit Cards can be accessed immediately for any kind of transaction making it easy for their customers.
6. Same CVV
Irrespective of the transactions made by the customers, the CVV of the virtual credit cards remain the same as long as the card is active.
Also Read
Limitations of Virtual Credit Cards
- The products are delivered to the consumer before the money is sent to the business account, making it risky for the seller.
- The period of time between the sale and payment on a merchant’s account is frequently very long.
- Online purchases that need to be returned can be challenging with a virtual credit card since you may need to tap or swipe the card to confirm the exchange request, which is often impossible with a virtual credit card.
Virtual Credit Cards Offered by Different Banks and NBFCs
We have listed a few best virtual credit card providers, check them out.
1. HDFC Bank NetSafe card
HDFC Bank has introduced the HDFC Bank virtual credit card called netsafe card. The virtual credit card is a means of payment that safeguards the cardholder’s private information, including their credit card number, PIN, and other confidential data, just like a prepaid credit card does.
Key Features:
- The cardholder’s credit or debit account will be credited with any remaining balance
- Since a password and PIN is sent to the registered mobile number and email address at the time of making the purchase, the virtual card ensures complete security.
- The virtual credit card’s loading amount is predetermined, protecting the cardholder’s remaining funds.
2. SIB OneCard Credit Card
A collaboration between South Indian Bank (SIB) and FPL Technologies Private Limited produced the OneCard Credit Card (FBL). You will obtain a virtual credit card in addition to a physical credit card via the OneCard mobile application. The virtual card, which is powered by VISA, can be used to make transactions both online and through mobile applications.
Key Features:
- Points are instantly credited.
- The points you earn don’t expire.
- You can swipe and pay without OTP for online purchases
3. SBM OneCard Lite Credit Card
With the SBM OneCard Lite Credit Card, you can benefit from discounts on purchases for clothing and other necessities. Your SBM OneCard Lite Credit Card reward points never expire.
Key Features:
- There is no joining fee and annual fee.
- You can control your card virtually.
- You can manage your cash and credit withdrawal limits easily.
4. Axis Bank eshop Virtual Credit Card
Axis Bank gives a free virtual credit card called eshop. After entering your credit card information on the axis bank website, you can generate an eShop credit card.
Key Features:
- It is Visa based so there are no master card options.
- It has a 48 hours validity period.
How to Apply for Virtual Credit Cards?
Obtaining a virtual credit card involves the following steps.
- Step 1: Visit the official website of the credit card provider
- Step 2: Choose the credit card of choice
- Step 3: Fill in personal information and verify OTP sent on registered phone numbers
- Step 4: Validate KYC and other documents
- Step 5: Activate internet banking and accept card details
- Step 6: Use the virtual card details for online transactions
How to Use Virtual Credit Cards?
If you are willing to use virtual credit cards for making a payment, you should ensure that the credit card provider allows virtual payment access. On submitting credit card details, you will get a unique card number with an expiry date and security code. For online transactions, you must
- Step 1: Enter the credit card number details
- Step 2: Enter credit card validity
- Step 3: Put the OTP sent to your registered number
- Step 2: The transaction is confirmed when users confirm the information provided.
Are Virtual Credit Cards Safe?
Experts believe that virtual cards are safer transaction modes than most other modes like cash and physical cards. Also, you can always check if your virtual credit card is fake or not at the virtual credit card generator. Here are some points supporting this statement include:
- Virtual cards are temporary and automatically get disposed of after a set number of transactions.
- Canceling virtual cards is easier and does not enable fraudsters to tamper with them.
- Single-use virtual cards automatically refute their validity when there is a data breach or unsecured network connection.
Things to Consider Before Applying for a Virtual Credit Card
To get an instant virtual credit card in India, here are a few things you should consider before you apply for virtual credit cards
- It’s necessary to have a primary credit card in order to use a virtual credit card.
- You cannot withdraw cash as virtual credit cards are meant for online transactions only.
- Virtual credit cards have limited use in actual stores. As a result, using a virtual credit card to make purchases at outlets or shopping centres is not possible.
Final Word
Physical credit cards increase the risk of fraudulent activities since they are easier to clone. Virtual credit cards, on the other hand, do not expose personal information and thus are securer and more convenient. Almost all credit card users can avail of virtual cards from their card providers.
FAQs
To obtain a virtual credit card, physical credit card users should ensure that their financial provider issues virtual cards and then apply accordingly. People with bad credit history might not get a credit card in the first place.
You can use virtual credit cards anywhere if the payment receiver allows credit card payments. You will need to have a valid virtual credit card to enable such payments. In some cases, there might be an additional charge.
Users with valid cards can make payments anywhere. But there can be issues with refunds if you use a virtual credit card. If you need a refund from a retailer, you will have to provide card details. But in case the card has already expired, then the refund is not possible.
The original limit of any virtual credit card usually stays at Re. 1 by default. You can increase this limit as per the limit of your primary credit card.
Yes, virtual credit cards are legal in India
Yes, there are few banks that provide Virtual Credit cards for free.
Kotak Mahindra, Axis Bank, IDFC first bank are one of the banks that provide free virtual credit cards in India.
Before you go…
- Looking for instant ? personal loans 24*7 anywhere, anytime? Install the Navi app now!
- Or, maybe you’re looking to buy that house you’ve been eyeing ? and
you need a loan of up to Rs.10 crore. Install the Navi app now and get instant in-principle approval right away! Interest rates starting at 6.95% p.a. - How about an affordable health insurance policy ?⚕️ starting at a monthly premium of just Rs. 241? Install the Navi app now and get your policy in under 2 minutes.
- Instead, want to put your savings into action and kick-start your investment journey ? But don’t have time to do research. Invest now with Navi Nifty 50 Index Fund, sit back, and earn from the top 50 companies.
Mutual Fund investments are subject to market risks, read all scheme-related documents carefully.
This article has been prepared on the basis of internal data, publicly available information and other sources believed to be reliable. The information contained in this article is for general purposes only and not a complete disclosure of every material fact. It should not be construed as investment advice to any party. The article does not warrant the completeness or accuracy of the information, and disclaims all liabilities, losses and damages arising out of the use of this information. Readers shall be fully liable/responsible for any decision taken on the basis of this article.
