July 22, 2025 · 12 mins read
Santhosh Kumar
A virtual credit card is an electronic version of your physical credit card. It is available in a digital form and not in a physical form. However, all the details, such as card number, CVV, validity date, and more, are available online, mostly on the website of your credit card issuer.
Apart from being easy to use, a virtual credit card also provides security to its users. Virtual credit cards protect you from having your credit card information stolen by not being physically available in the market. However, this is a short-term credit card and allows a limited number of transactions. It is mostly provided by credit card issuers as an add-on card on the primary credit card.
While shopping with a virtual credit card can be a little tricky as opposed to using a normal credit card, since it protects you from identity theft and fraud, the excess effort makes it all the more worth it.
Here are a few ways that could make your VCC a lot more useful.
1: You can make a transaction using a virtual credit card by opening a virtual credit card website.
2: Banks that support virtual credit cards have integrated browser extensions, while others require you to log in to your account on their website.
3: Once you've signed in with a username and password, you can generate a one-time token. It will encompass a unique credit card number and security code. You may be offered to set an expiration date for your virtual credit card, depending on the service provider.
4: Additionally, you can set a spending limit, which can be helpful if you're sharing the card with someone else.
5: Now, you're all set to make an online transaction using the details of a virtual credit card. Transactions will show up on your statements of a 'normal' credit card.
A virtual credit card keeps a physical credit card’s information safe when the cardholder shops online by creating a temporary card number to replace the 16-digit number printed on a plastic card. In technical terms, an operational number is randomly generated with a computer algorithm, quite similar to how modern EMV chip cards work for card-present purchases.
Once the number is generated, it can be used to make online purchases in a similar way, just as any regular credit card. Here, instead of entering the actual credit card number in the payment box while shopping online, the customer mimics the EMV technology in the chip card by using a random number that is specific to that merchant or transaction. The only difference is that the majority of virtual credit cards have limitations on when and where they can be used to prevent them from being used by data thieves.
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Unlike physical credit cards, virtual credit cards offer numerous benefits for safer and more convenient transactions. Some of the important features and benefits of virtual credit cards are as follows:
Improved Security: Virtual credit cards provide much more security than physical credit cards. Most virtual credit cards come with a one-time usage option and are valid for a specific period of time as these cards can only be used online, the chances of theft or fraud become minimal. The added benefit of limited use adds to its security.
Flexibility: You can make payments through a virtual credit card using your existing internet banking-enabled account. The card can be created for any amount and be used at any online merchant site accepting credit cards, which makes it much more flexible than physical credit cards.
Convenience: Virtual credit card has no physical form, and all the important details, including CVV, card number, expiration date, and more, are available online, which you can easily access through a mobile phone. Hence, the hassle of carrying the physical card is completely out of the way.
Easy Cancellation: Virtual credit card provides a facility for easy cancellation to its users. In any case, if you want to cancel the card, you can do it effortlessly and easily through your smartphone.
No doubt, virtual credit cards offer many privileges, but as every coin has two sides, virtual credit cards also come with several limitations. Some of the limitations are listed below:
1: You cannot use a virtual credit card at a merchant swipe machine as it is purely digital
2: Returning the items from an online order to a physical location becomes challenging
3: The ones with the short expiration date can cause issues with subscriptions
4: You cannot withdraw cash using the virtual credit card
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A virtual credit card allows you to perform all the functions that a physical credit card does. You can do everything online, from adding money to making transactions in a few taps. However, the virtual credit card is more secure as it comes with a 16-digit number, which is specifically designed for a single use. Before opting for a virtual credit card,d one should know about all the terms related to it and how it differs from a physical credit card. Here are some of the differences that you should know about before applying for a virtual credit card:
Virtual Credit Card: Account numbers are generated only for a single use which ensures security Physical Credit Card: Fixed account numbers from the time of account opening
Virtual Credit Card: Cardholders can select spending limits Physical Credit Card: Spending limit settings are available only for selected issuers
Virtual Credit Card: The card can be used on multi-channels, including mobile apps, phones, or website Physical Credit Card: The card can be used in person, and selected functions can be done online
Virtual Credit Card: Provides fraud protection as all the relevant details are saved online Physical Credit Card: Does not provide fraud protection and is more prone to card information theft
Virtual Credit Card: Comes in a digital form and is valid only for a limited period Physical Credit Card: Comes in a physical form and is valid for a few years
Virtual Credit Card: Usually comes with no annual charges Physical Credit Card: Usually comes with annual charges but can be levied after certain conditions.
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Virtual credit cards are available in two ways- either directly from the bank's side if the customer has a credit card issued by one of the banks that provides this facility or by linking a pre-existing card from another bank to an online service. Given below is the list of different banks in India that provide virtual credit cards:
Other virtual cards that banks offer
Bank Name: HDFC Bank Card Name: HDFC NetSafe Key Features:
1: Set credit limit for the NetSafe cards 2: NetSafe card is a one-time use card
Bank Name: SBI Card Name: SBI Corporate Virtual Credit Card Key Features:
1: Accelerate payments to the suppliers 2: Configurable controls for each transaction
Bank Name: Kotak Mahindra Bank Card Name: Kotak Mahindra Bank Netc@rd Key Features:
1: No fees for the creation or use of Netc@rd 2: Automatically expires after 24-48 hours
Bank Name: ICICI Bank Card Name: ICICI Bank Virtual Credit Card Key Features:
1: 1 reward point for every Rs. 200 spent 2: The initial credit limit of the card is set to Re. 1
Bank Name: Axis Bank Card Name: Axis Bank FreeCharge Plus Credit Card Key Features:
1:Vouchers worth Rs. 700 on the activation 2: Cashback on every transaction
Bank Name: HSBC Card Name: HSBC Advantage Virtual Card Key Features:
1: Can only be used for online shopping 2: You can set the card's limit based on your purchase
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HDFC Bank provides a free virtual credit card solution called Netsafe to its customers. This virtual payment service can be enabled for online shopping transactions made using your credit cards.
1: Can be generated for free without any hassle
2: Keeps your actual credit card information safe
3: The monthly statement reflects in your original credit card statement
make your HDFC credit card payment on CRED to earn exclusive rewards and cashback.
Axis Bank provides a free virtual credit card called Shop to its users. You can generate a shop credit card after registering your credit card details with the Axis Bank official website.
1: Shop card is visa-based, and no Mastercard option is available
2: The validity period is 48 hours
3: The monthly statement will be reflected in your original credit card statement
make your Axis Bank credit card payment on CRED to earn exclusive rewards and cashback.
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ICICI bank issues a virtual credit card as an add-on card on the cardholder's primary card. The credit card limit on the ICICI virtual card is set by the user himself, depending on the limit on his primary card.
1: Zero-cost card, which means the bank does not charge any amount on the issuance of the card
2: like any other credit card. ICICI virtual card is an international visa card and can be used for all kinds of international transactions as well
as make your ICICI credit card payment on CRED to earn exclusive rewards and cashback.
SBI also provides a virtual credit card to its customers, which can be generated from their official website.
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1: The maximum spending limit is ₹5,00,000.
2: It is not enabled for international transactions
3: Only SBI corporate credit card users can make free-of-cost international transactions using a visa-based credit card
make your SBI credit card payment on CRED to earn exclusive rewards and cashback.
Kotak netc@rd is not technically a virtual credit card, but it works in a similar way as a virtual credit card. You can generate a unique card number for domestic and international transactions.
1: All the features are the same as a virtual credit card
2: The virtual credit card is visa-based, and no Mastercard option is available
3: You can make use of Kotak netc@rd for a Netflix subscription, too
4: Make your Kotak credit card payment on CRED to earn exclusive rewards and cashback.
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the future of virtual credit cards seems quite robust because of how well they lend themselves to an automated purchasing process. Should your virtual credit card get compromised, you can always delete it or lock it with a simple click using your main credit card. Virtual credit cards' built-in security features make them much safer to use in an expense process rather than using a normal credit card.
Additionally, virtual credit cards protect you from fraud, can be closed down on request, and do not affect your recurring payments, making them safe and easy to use.
So the next time you're thinking of a potential security threat to using credit cards, consider a virtual credit card could prove to be a viable solution.
Real-time transaction alerts: Get notified the moment your card is used. These real-time alerts help you track spending and quickly spot any suspicious activity.
No hidden fees: Grey is upfront with its charges. There are no surprise fees or hidden charges, so you always know how much you're spending and how your funds are being used.
Secure international payments: Grey supports payments on trusted global platforms like Netflix, Spotify, Canva, Upwork, and PayPal while using encrypted systems to protect your data and transactions.
Multi-currency accounts: Supports US, UK, and EU bank accounts, allowing you to receive money like a local from clients and platforms
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No, since virtual credit cards do not have any physical existence, you cannot use them for offline or POS transactions. They can only be used to transact online.
If you have decided to apply for any particular virtual credit card, contact the bank or the NBFC that is offering the card and ask them to guide you on the application process.
No, at present, virtual credit cards are issued only to primary cardholders and not to add-on cardholders. However, to know the exact status, check with the card issuer once.
Whether you can use your virtual credit card for international transactions or not depends on the issuer of the card. So contact the card issuer and inquire about the same.
Usually, most virtual card issuers don’t charge their customers for issuing a virtual credit card. However, contact the card issuer and inquire about the same.
No, you cannot withdraw cash with a virtual credit card.
On the expiry of your virtual credit card, the unused credit limit will be transferred to the primary card.
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