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.
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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:
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.
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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.