What Are Virtual Credit Cards? What Are Its Benefits?

As the name suggests, it is a credit card that is available virtually. These cards are available only for a short allotted period. If not used within this period, the card will expire, and the available amount will move to the bank account. The Virtual credit card has many benefits, some of which are listed below. 

Offers Stellar Security

Credit and debit card frauds are a tremendous risk during online payment. Physical cards have magnetic strips or chips that are mimicked by fraudsters easily. The virtual contemporaries of these cards do not have this problem. It is because they are devoid of such strips or chips. The fact that these cards are available online also minimizes the chances of theft. The feature of OTP further supplements the security.

Instant Blocking Facility

If you find any reason to cancel your virtual credit card temporarily or permanently, you can easily cancel or block it. All you need is your smartphone and an internet connection. You don’t have to submit any special requests or documents to block your card online (or offline) anytime and anywhere of your choice.

Settable Transaction Limit

Most banks and credit card companies don’t allow the user to set the spending limit of the card. Only the banks and credit card companies can do the deed. But, with virtual cards, the case is different. Virtual credit cards already have their spending limit. But, the user can set the limits of their card himself/herself according to their convenience. OTPs or one-time passwords (sent to the registered mobile number) then validate the payments for verification and additional security.

Convenient to Use

These virtual cards are, as the name suggests, virtual. The term ‘virtual’ depicts that they are non-physical in existence. You don’t need to worry about a safe place to carry them (like wallets and purses for physical cards). Just like physical cards, these virtual ones also have a CVV or card number and validity dates. These details are available online, which you can save on your phone. Hence, there is a negligent chance of losing your card or its information. 

Easy to Get

Virtual credit card is easy to obtain, but are issued to physical cardholders only. Most banks and credit card companies offer these cards to their customers without charging them a dime. The user has to apply for the virtual card online on the bank’s website, mobile app, or any trustworthy digital wallet.