July 22, 2025 · 12 mins read
Santhosh Kumar
Online transactions are convenient, but they can also put your personal information at risk, especially if a retail site experiences a data breach. Virtual credit cards can make online shopping more secure. It's considered a safe payment option that puts an additional barrier between your credit card number and identity thieves. Virtual credit cards offer features that add protection and convenience, but they might not be the right fit for you, especially if you don't shop online often or if you prefer to use your smartphone for online transactions.
A virtual credit card is a temporary number that's linked to your regular credit card. You can use it to make purchases online without having to enter the number printed on your credit card. The transaction will go through normally, and your credit card will be charged, but your real card number will never be exposed.
The way a virtual credit card number works can vary from one credit card company to the next:
1: Some virtual credit cards can only be used at specific online stores.
2: Others can be used at any online retailer that accepts your regular credit card.
3: You may be issued a virtual credit card number that can only be used one time.
Check with your credit card company to see if they issue virtual credit card numbers. If so, they can likely link one to your existing account. They might do this through an internet browser extension that automatically generates a virtual number at checkout. Alternatively, you might be able to log in to your online account and generate virtual credit card numbers as needed.
Keep in mind that not all accounts are eligible for virtual numbers. If you already have credit cards, you can contact your issuers to see if the feature is available for your accounts. Also, check to see if your credit cards are compatible with digital wallets, which can make in-person and online transactions more secure.
Virtual credit card numbers can help keep your information safe by protecting your account information from fraudsters and making it harder for them to access your account. If a virtual card number gets into the wrong hands, it'll be worthless if it's already been used and deactivated. Even if someone makes unauthorized charges, you won't have to go through the hassle of replacing your credit card and updating your payment information with accounts or merchants that have your card on file. All you have to do is report the unapproved transactions to your credit card company. You'll never be responsible for more than $50 in fraudulent credit card charges, thanks to the Fair Credit Billing Act. Your liability may be less than that, depending on your credit card issuer.
1: Explained below are a few reasons that explain how a virtual credit card is absolutely safe to use- Since virtual credit cards are temporary and are disposed of after a limited number of transactions, they provide an additional level of security
2: If, by any chance, the details of your virtual credit card fall into the hands of a fraudster, you can simply cancel that virtual card without having to close your entire credit card account.
3: Sometimes, a virtual credit card is designed for a single use only. In such cases, if a fraudster steals the details of your virtual credit card in a data breach or through an insecure internet connection, then the card would automatically become invalid.
Virtual cards are immensely secure in comparison to physical cards for the following reasons.
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With Virtual cards, you get the feature to set spending limits. This means that every virtual card you use for your business can have a maximum spend limit, and any transaction above that limit would simply be canceled. Suppose the card is somehow in the wrong hands. Your money will still be safe.
Unlike a physical card, virtual credit cards cannot be stolen or lost. This is because you carry a physical card everywhere with you, and there are high chances that anyone can easily slide it out of your pocket or wallet. However, as virtual cards have no physical presence, it is impossible to steal them.
Online virtual cards are valid for a limited time period only. Every card created online has limited validity, depending on the card provider. However, the credit limit and validity time differ from bank to bank. However, this is not the case with physical cards; they do not have to spend a period.
As you have complete control over virtual cards, you can block or freeze these cards instantly. Whereas if your physical corporate credit card is stolen or lost or in the wrong hands, you will have to go through the long procedure of first contacting your bank and then waiting for them to process your request and then block or freeze your card.
Virtual credit cards are subjected to Payment Card Industry Data Security Standard (PCI DSS). This means that these cards adhere to a set of policies and rules specially designed to protect credit or debit transactions to prevent the cardholder from the misuse of personal information.
With vendor-specific cards, you can assign each vendor a specific card. Since you don't have to use the same card for other vendor transactions, it will be much easier to track all the transactions. If different people are using the same card for payments, there are chances that some fraudulent transactions might happen through the card, and it will be a tedious task for the accounting team to track all these transactions as well.
Not every virtual card works the same, so the features can vary. But here are four benefits you likely can expect from virtual credit cards.
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One of the key benefits of a virtual credit card is that it's much easier to cancel than a physical credit card, potentially keeping your account safer.
When a physical card is lost or stolen, you generally must cancel it and await the arrival of a new card. But when you need to cancel a virtual card number, you normally can do so by logging in to your account and following the card issuer's directions—all while still being able to use your physical card.
Additionally, virtual credit cards aren't directly connected to your physical card or your account details, cutting back on the risk of fraud. Still, information from a virtual credit card might be as prone to hacking as information from a physical credit card.
Virtual credit cards can help you keep tabs on spending. That's because some of these cards enable you to set spending limits.
For example, if you give your teen your credit card number to make a purchase online, a virtual card might prevent them from going overboard. Or a business might provide virtual cards with dollar limits to limit employee spending.
It seems obvious, but a virtual credit card doesn't require you to keep track of a physical card. So, when you're ready to make a purchase from a merchant that accepts virtual cards, you don't need to scramble to find your physical card.
A virtual card might simplify online shopping. For instance, rather than typing out a card number every time you make an online purchase, you may be able to rely on virtual card numbers that autofill the spots where payment information is entered.
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Here are four potential drawbacks of virtual credit cards.
You can't use a virtual credit card for in-store purchases, such as buying groceries. In addition, a virtual card might not be ideal if you need to verify your identity when you're picking up an online order. Furthermore, a virtual credit card may not work if you need to produce a physical credit card when you're checking into a hotel or renting a car, for example. Tech Issues
If a virtual credit card is tied to a browser extension, you might need to rely on a laptop or desktop computer to use the virtual card number. Therefore, a mobile device might not be able to accommodate a virtual card number.
On top of that, you simply might be more comfortable with low-tech physical cards than high-tech virtual cards.
Because a virtual card number is usually temporary, it might not be wise to use one for recurring payments, such as credit card bills. Why? Because the virtual card might expire ahead of the next payment due date.
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Traditional credit cards have been around since the 1950s. Virtual credit cards, on the other hand, are newer innovations. Some credit card issuers do not currently offer them.
Even though a virtual card isn't a permanent replacement for a physical card, it still may be a good idea to use one as protection from fraud or as an emergency backup in case you lose track of a physical card.
Here are four questions you should ask to decide if virtual cards are right for you:
1: Are you a digital fanatic? If so, virtual cards may be a great alternative to physical cards.
2: Do you do a lot of online shopping? If you do, virtual cards might help beef up your online security.
3: Do you do a lot of shopping at brick-and-mortar stores? If this is the case, you might prefer physical cards (or a digital wallet) over virtual cards.
4: Are you seeking flexibility in terms of where you can use a credit card? If so, a more widely accepted physical card might be preferable to a less accepted virtual card.
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There are mainly two types of virtual credit cards. These are:
A single-payment virtual credit card is meant for one-time use. You can use them for a specific event or transaction. For creating this card, you need to provide details like the amount of credit, the expiration date, and any linked budgets, if required.
The multi-use virtual cards are an ideal option for companies that need to make regular payments. These cards are perfect for repeat transactions, such as payments to regular vendors or monthly subscriptions.
When you create a multi-use virtual card, you need to set a recurring date for automatic payments and the amount you have to pay each time.
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Here are some other ways to keep your information safe when shopping online:
1: Don't shop on public Wi-Fi networks. These unsecured networks make it easier for fraudsters to tap into your personal information. Do your online shopping at home or use a virtual private network (VPN) connection in public places.
2: Pay with your credit card. Debit cards tend to offer fewer fraud protections. If there are unauthorized charges, you may not be reimbursed for 100% of your losses.
3: Only shop with secure websites: Be sure the website starts with "https" (not "http"). That indicates that you're using a secure connection. You can also look for a lock icon in your web browser that signals you're using a secure website.
Now, it is a given that virtual credit cards provide greater security for online purchasing and selling. Still, consumers are not fully safeguarded as rules and regulations are currently in the development phase. Phishing and hacking remain a serious possible threat. This can even impact the credit score of an individual if not followed diligently. Therefore, you should carefully monitor your statements closely and report suspected fraud at once. Timely reporting in such cases is of immense importance.
Finally, as India grows through the ongoing digital revolution, virtual credit cards could well prove to be the answer to ensuring completely secure online transactions. Whether or not they are successful will depend on advancements in technology, user education, awareness, and consistent vigilance in managing the security of these lending assets.
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A virtual credit card allows secure online transactions as it reduces the risk of exposing the underlying credit card details to the vendor or merchant.
The initial credit limit of the virtual credit card is set to Re. 1. However, you can alter the maximum limit on the VCC within the overall limit of the primary card.
No, the virtual credit card can be issued only to the primary cardholder.
The important details of a VCC, like the card number, expiry date, etc., are all visible online. One can use these details to facilitate all online transactions and never be worried about losing the card or carrying it safely in the wallet.
Whether you can use your virtual credit card for international transactions or not totally depends on the issuer of your card.
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