What is a Virtual Credit Card? How does it Work?

Technology has made our lives easier- there are no two ways about it. However, it has also led to an increase in frauds and identity thefts.

If you are worried about someone using your credit card information without your consent, then a virtual credit card is a good option.

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These days, Equated Monthly Instalment (EMI) plans come in different formats. The most common two are as follows:

What is a virtual credit card?

A virtual credit card is, well, a “virtual credit card”. Just like a standard credit card it has its unique card number, CVV number, expiry date, etc. However, it’s different because it’s typically used for one-time payments and has limited validity. This is done on purpose so that you can use it for making payments online without worrying about someone stealing your card information.

A virtual credit card is preloaded with a certain amount of money. However, the details of your primary credit card are completely secure as they are not shared with the merchants when you use your virtual credit card.

Some of the banks that offer VCC in India include HDFC Bank (HDFC NetSafe), ICICI Bank (ICICI VCC), Axis Bank (Axis e-wallet card), etc.

Some key points to note about VCC:

• Most VCC have a validity of 24 hours only. After this duration is completed the card expires automatically.
• You can create a VCC using either a credit card or debit card.
• In case a merchant initiates a refund after your VCC is expired, it’s transferred to your primary credit/debit card.

Virtual credit cards are an excellent option when you want to maintain anonymity and high security during online purchases. However, if you are going to get one then make sure to ask your provider about extra charges/fees if there are any.