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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.

Virtual Credit Card

Most major credit card issuers offer virtual credit cards (VCC) to ease customer transactions and improve security in usage. It serves as a virtual extension of a physical credit card and comes with online functionality only.

Features and Advantages of Virtual Credit Card(VCC)

  • Offers improved security

    Virtual credit cards come with a one-time usage option. The card number generated is valid for a specific period ranging from 24 hours to 48 hours. As the card is available only online, the chances of misuse or theft are minimised. Its added benefit of limited use improves security further. Use of OTP further enhances its security.

    In some cases, a cardholder can also cancel it if he/she does not require it.

  • Comes with a transactional limit

    Similar to physical credit cards, VCCs also come with a limit to transactions. Users can transact multiple times within this limit. Its credit limit is similar to that on the primary card.

  • Immediate availability

    As card issuers provide VCCs online, customers can access them immediately for required transactions.

  • Instant online application and blocking facility

    Cardholders can apply for as well as block their VCC instantly online if they find any threat to its security.

  • CVV remains the same throughout

    The CVV number of a virtual credit card remains the same if the card is active irrespective of the number of transactions a customer makes. It only changes when a customer cancels it and avails a new card instead.

  • Issued to primary customer

    A VCC is issued only to the primary cardholder and not to an add-on holder of the primary card.

How to use Virtual credit Card

A VCC is available for online transactions only and does not extend to physical swipes. When using it to make purchase or payments, a user needs to follow the steps mentioned below to complete a transaction.

  • i. Input the card number.

  • ii. Enter the validity required.

  • iii. Verify with OTP sent to the registered mobile number.

  • iv. Complete transaction.

Should You Apply for a VCC?

Given the mentioned features and benefits, a VCC ensures additional security as against a physical credit card. Other benefits include the following –

  • The unused credit limit is transferred on expiry

    In the case of expiry of the VCC, the remaining credit limit is transferred to that of the primary card. It ensures a comprehensive utility of VCC’s limit.

  • Available at zero cost/fees

    Currently, financial institutions provide these cards free of cost. You do not need to pay any fees or charges when availing it.

  • National and international transactions possible

    The utility of VCCs extends to both national and international transactions, thus enabling cardholders to purchase conveniently online.

Users must, however, confirm their decision for VCC applications after considering the following pointers.

  • Existence of a primary credit card is essential to issue a VCC. Individuals must, therefore, obtain a physical card to be able to avail and use it.

  • VCC’s utility at physical stores is limited. In that case, users cannot purchase with this card when making purchases at a shopping mall or outlet.

  • As a VCC’s usage is limited to online transactions, users cannot make cash withdrawals through it.

A user’s decision to proceed with a VCC application should ideally be based on the overall considerations. Weigh its benefits against the limitations to decide whether to go for the application or not. In case its limitations outweigh its benefits, users can go for options like Bajaj Finserv RBL Bank SuperCard that come with robust security features like zero-fraud liability and in-hand security. Other attractive features of the card include attractive annual savings, interest-free cash withdrawals for up to 50 days, repayment in easy EMIs, personal loan against the unused credit limit, and more. Avail it online by completing a simple application procedure to enjoy such features and benefits.

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