At present, you can access almost everything virtually. All you require is a smart device with Internet connectivity to make payments, perform purchases, or pay your bills. We no longer exist in the days when carrying cash physically is needed. Hence, by using your credit cards conveniently, you can manage your purchases, bills, and other transactions.
It might have occurred to you that when using your credit card digitally, you do not need to enter your credit card credentials repeatedly. However, with the innovation of virtual credit cards, you stand on the safe side.
What is a Virtual Credit Card?
Virtual credit cards are digital cards that work similarly to physical credit cards but in the absence of plastic. Instead of offering the same card number to different vendors, companies limit the exposure to avoid potential threats and fraud by creating different 16-digit card numbers with a specific expiration date for each transaction. Hence, with this unique number, the payee can only use the approved amount of money.
Key highlights:
- Virtual credit cards provide several benefits, including security and controls, enhanced visibility and improved expense management.
- Virtual credit cards instantly generate unique 16-digit numbers with expiration dates for each transaction.
Major Reasons To Avail a Virtual Credit Card
Not all virtual credit cards work in the same way, and hence, their features differ. However, some of the common benefits that you can enjoy with a virtual credit card apply include the following:
Enhanced Security
One of the major benefits of using a virtual credit card is that it can be more easily cancelled compared to a physical credit card, which eventually keeps your account safer. If your physical card gets stolen or lost, you must cancel it and wait till your new card arrives. However, when you are willing to cancel your virtual credit card number, you can do so by logging in to your account and implementing the directions given by the card issuer.
In addition, virtual credit cards are not directly connected to your physical cards or account details, eventually reducing the risk of fraud.
Better Convenience
A virtual credit card doesn’t need your extra efforts to track it like a physical card. Hence, whenever you want to make a purchase from a merchant accepting virtual cards, you don’t have to scramble for your physical card.
Effective Spending Control
Virtual credit cards are helpful in controlling your spending. This is so because some of these cards let you set a limit on your spending.
Easy Online Transactions
Virtual credit cards help simplify your online shopping process. Hence, rather than mentioning the card number each time you pay for your online purchase, you can entirely rely on virtual card numbers, which auto-fill the fields where the information is required.
Detailed Reporting
Through real-time payment information of your virtual credit cards, it is quite easy to identify and address compliance issues or anomalies quickly.
Easily Accessible
As a virtual credit card is offered online, you can get it instantly through bank websites or mobile applications. Once you have applied for the virtual credit card successfully, you will be provided with a unique virtual card number that you may use to make payments online.
Transfer Unused Amounts Conveniently
In case your virtual credit card reaches its expiration date, and you are left with a specific credit limit on it, you don’t have to worry about losing it because the remaining amount is transferred.
Summing Up
Virtual credit cards allow account holders to enter into the digital opportunities of payment technology, providing great benefits, including enhanced security. Considering its simple usage and great benefits, you must apply for a virtual credit card for a hassle-free financial experience. You can also avail a credit card against FD for quick credit card approval.
FAQs
Q1. Is it safe and secure to use a virtual credit card?
Virtual credit cards come with multiple fraud protections, making them much safer than other payment methods.
Q2. Is there any limit to using a virtual credit card?
The limit of your virtual credit card is almost equal to the limit on your physical credit card. However, you are free to set a specific limit to avoid overspending.
Q3. Can my virtual credit card expire?
Each virtual credit card comes with a unique card number, expiration date, and CVV for enhanced security. Hence, your card expires on the given expiration date.
Q4. Can I withdraw funds from my virtual credit card?
Virtual credit cards are made for online transactions, and hence, you cannot use them for cash withdrawals.
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