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.
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.
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:
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.
Thanks to recent advancement, Virtual Credit cards can be created instantly, and you can access them from anywhere online to make transactions.
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.
You can easily cancel your virtual credit card from your smartphone or any other device from anywhere with just a few clicks.
Virtual Credit Cards can be accessed immediately for any kind of transaction making it easy for their customers.
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.
We have listed a few best virtual credit card providers, check them out.
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.
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.
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.
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.
Obtaining a virtual credit card involves the following steps.
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
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:
To get an instant virtual credit card in India, here are a few things you should consider before you apply for virtual credit cards
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.
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…
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.
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