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What is a virtual credit card and should you apply for one?

  • Highlights

  • A virtual credit card requires a primary card

  • A virtual credit card can only be used online

  • A virtual credit card may have a lower credit limit

  • The SuperCard offers you both security and perks

Virtual credit cards are those credit cards that are available online and not in a physical form. These cards are specially created in order to carry out online transactions. This type of credit card has a card number, CVV, and validity dates just like a regular credit card. However, all these details are available online and can be viewed online too. To understand whether you need to get this card, take a look at its pros and cons.

Advantages of a virtual credit card

Here are the pros of a virtual credit card.

- You enjoy secure transactions
As this is a virtual credit card, the chances of misuse or theft is low. Further, some banks allow you to create a timely virtual card for a specific period by using net banking. While certain virtual cards last for as little as 48 hours, others can be used until you cancel them and you can do so at any time.

- You have a transaction limit
Despite the zero chances of cloning it, this virtual card is made even safer as the limit of the card is fixed. This means that the amount that the card can be used for is capped and even if your virtual credit card is accessed by an unauthorised person, they will not be able to use up your entire credit limit.

- You can choose your transaction limit
In order to ensure you do not need to go through inconvenience for the sake of safety, issuers allow you to choose the limit of your virtual credit card. Further, these transactions are secured by an OTP verification.

Additional Read: How to apply for Credit Card in 3 steps

- You can get a virtual credit card free of cost
If your financial institution provides it, you can usually avail a virtual credit card for free. This means you do not need to pay any additional fees for it. Some issuers offer the option of a virtual credit card as a prepaid card based on your debit card. So, find out if your financial institute provides this option.

Disadvantages of a virtual credit card

Here are the cons of a virtual credit card.

- You cannot use the card physically
Consider an instance when you are shopping at a mall and want to make a purchase or payment. Here, you will not be able to use your virtual credit card. Further, if your virtual credit card is based on the limit of your physical debit or credit card, you may need to cancel your virtual credit card while at the mall to access a higher financial limit to make a big-ticket purchase. It is important to remember that you also cannot use the card to withdraw cash.

- You need an original credit card to obtain a virtual credit card
Before choosing an issuer that offers virtual credit cards, remember that you need to have a primary credit card with that particular issuer in order to avail of a virtual credit card. This may even require you to settle for a credit card with high annual and interest charges or other fees in order to avail of the virtual card feature.

- You may face difficulties while shopping
In an instance where you shop online and seem to have purchased the wrong size of clothing, shoes or other items, you will want to replace the item or get a refund. In such an instance, since you have used a virtual credit card, it may become difficult to establish the digital money trail and you may face some setbacks or delays.

No matter which credit card you have, a student credit card or an international credit card, keeping these pros and cons in mind, you can choose whether a virtual credit card is the right financial tool for you. If you feel that the cons outweigh the pros, you can consider other credit cards with robust security features. One such credit card is the Bajaj Finserv RBL Bank SuperCard. This card comes with an in-hand security feature that allows you to control the limit of you credit and cash and set a limit for international transactions.

Additional Read: How to Choose the right Credit Card

Its zero-fraud liability cover helps fight any cybercrime threats to your finances. Further, with the RBL MyCard app you can control the spends on this card easily. To add to this, the RBL SuperCard offers other benefits like exclusive deals with Bajaj Finserv’s partner stores, annual savings up to Rs.55,000, 50-day-interest-free cash withdrawals and 90-day-interest-free personal loans. Check your pre-approved offer and access your credit card deal and enjoy expedited financing without having to wait out long procedures and check your credit card application status. Get started now!

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