To facilitate a cashless economy, RBI approved the launch of various digital transaction interfaces. This led to the growth of UPI and other online payment gateways. However, cash transactions are chaotic, and it often becomes difficult to manage cash. Digitisation has facilitated online payment options for all transactions subject to guidelines set by RBI. Virtual credit cards now join the league of net banking and UPI to enable users to pay remotely in a seamless manner.
Click here to read more.
Like usual credit cards, virtual credit cards are temporary 16-digit numbers that store credit information. However, they negate the possibility of credit card losses or being misused by anybody else, thus securing the payment.
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.
Also Read: 10 Best Credit Cards For Online Shopping
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:
Also Read: 7 Benefits Of Using A Credit Card: Pay And Get Rewarded!
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
Obtaining a virtual credit card involves the following steps.
Experts believe that virtual cards are safer transaction modes than most other modes like cash and physical cards. Some points supporting this statement include:
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.
Ans: 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.
Ans: 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.
Ans: 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.
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.
Scheduled Bank – Know Its Types and Functions
Banks play an essential role in a country’s financial ecosystem. These financial institutions ass... Read More »What is Bancassurance: Its Services, Types, Models and Importance
Bancassurance means a partnership between a bank and an insurance company that allows the insurance... Read More »17 Different Types of Loans and Their Features
Loans can be broadly categorised into secured and unsecured loans based on whether they requir... Read More »What is Cash Reserve Ratio (CRR) in Banking and How Does it Impact the Economy?
All commercial banks in India maintain a specific percentage of total bank deposits as per the guid... Read More »Account Payee Cheque – How to Write and Encash?
An Account Payee Cheque is a very secure mode of payment. It is only used to deposit money into the... Read More »What is Merchant Banking – Its Uses and Services Provided?
Large businesses and high-net-worth individuals (HNIs) have different financial requirements and th... Read More »Payment Aggregator – Features, Types, Working, Example and Risks
Digital payments have become the most preferred and used payment method. And, it has led to the ris... Read More »What is Cheque Leaf – Purpose, Features and Types
Before the advent of electronic payment systems, bank cheques were the most popular form of non-cas... Read More »4 Important Factors That Affect Your Credit Score
Did you know the lucrative interest rate on loans by banks and NBFCs are usually meant for creditwo... Read More »What is Collateralized Debt Obligations (CDOs) and How Does it Work?
Investors can buy collateralized debt obligations or CDOs and depend on the assets within them to u... Read More »What is FCNR Account In Banking – Benefits, Eligibility and Documents Required
FCNR, full form Foreign Currency Non-Resident Bank (B), allows NRIs (Non-resident Indians) to inves... Read More »What are Prepaid Expenses – Journal Entry, Example and Benefits
Accounting tools are essential to forming a financial statement of a company that complies with com... Read More »Top 10 Chit Fund Schemes in India in 2023
Chit funds are one of the most popular return-generating saving schemes in India. It is a financial... Read More »10 Best Gold ETFs to Invest in India in February 2023
Gold ETFs or Gold Exchange Traded Funds are passively managed funds that track the price of physica... Read More »Top 10 Demat Accounts in India [Lowest Brokerage Charges]
A Demat account was created to eliminate the time-consuming and inconvenient procedure of purchasin... Read More »20 Best Index Funds in India to Invest in 2023 (Updated on 31st Jan)
What is an Index Fund? An index fund is a type of mutual fund or exchange-traded fund (ETF) that... Read More »Best Arbitrage Mutual Funds to Invest in India: Returns and Taxation
Arbitrage funds are hybrid mutual fund schemes that aim to make low-risk profits by buying and sell... Read More »Best SIP Mutual Funds To Invest In India (2023) – Its Types And Taxation
A Systematic Investment Plan (SIP) is a convenient way to invest a fixed sum in mutual funds. For i... Read More »10 Best Corporate Bond Funds in India 2023 – With Returns
Corporate bond funds are debt funds that invest at least 80% of the investment corpus in companies ... Read More »10 Best Banks for Savings Account in India (2023)
A savings account keeps your money safe, and lets you earn interest every quarter. There are many b... Read More »All information is subject to specific conditions | © 2023 Navi Technologies Ltd. All rights are reserved.
Start Small. Dream Big.
Start your Investment Journey with just ₹10