What are virtual credit cards? Key advantages explained

If you are too worried over the possibility of credit card frauds, you can explore the idea of applying for virtual credit cards. Those who are not aware, virtual credit cards are the digital versions of conventional credit cards, which offer enhanced security for online and other transactions.

Since these cards are saved in the cardholder's smartphone which is accessible through a passcode which only s/he knows, these cards naturally provide an added layer of safety. Additionally, these cards have a unique card number and can be blocked instantly by the user. Let us pull all these strings to describe the key advantages of using a virtual credit card.

Virtual credit cards: Key advantages

I. Virtual credit cards provide reduced risk of fraud and data breaches.

II. These cards provide the ability to set spending limits to allow cardholders to manage transactions well.

III. These cards can be used for online purchases just like a regular credit card and can be blocked instantly.

Virtual credit cards: A few examples

I. HDFC Bank Netsafe Virtual Card: NetSafe prevents you from sharing credit card information with merchants by generating a unique virtual card number for your credit card that can be used instead of your real numbers for online transactions.

II. ICICI Bank Virtual Credit Card: This bank offers virtual credit card which can be seen online on iMoble Pay. It is an online version of the traditional credit card.

A virtual credit card is not tangible because it exists only as data. Every virtual credit card has a unique card number, a security CVV Code and an expiration date, just like a regular physical credit card.

III. Kotak Mahindra digital card: Kotak Mahindra Bank offers you a virtual credit card free of cost, called netc@rd. You can generate and use it in simple steps. All you need to do is to go to the merchant website and select the product you wish to purchase. Then you need to select the payment mode as “debit card”.

Following this, you need to log in to the Kotak Net Banking and select the netc@rd tab. Upon receiving the OTP, click on ‘Generate Card’. Once your card is created, your Card No, CVV2 value and the Expiry Date will be displayed on the screen.

(Disclaimer: Mint has a tie-up with fintechs for providing credit, you will need to share your information if you apply. These tie-ups do not influence our editorial content. This article only intends to educate and spread awareness about credit needs like loans, credit cards and credit score. Mint does not promote or encourage taking credit as it comes with a set of risks such as high interest rates, hidden charges, etc. We advise investors to discuss with certified experts before taking any credit. )