What is a Virtual Credit Card?

Posted on Monday, December 16th, 2024 | By IndusInd Bank

As digital banking and transactions become the norm, many tools are also becoming virtual. If you have a credit card or are planning to apply for one, you may have come across the term ‘virtual credit card’. While the term is self-explanatory, there are many aspects to a virtual credit card you should know about as a potential credit cardholder.

So, what is a virtual credit card and how does it differ from its physical counterpart? Let us learn more about the same.

Understanding Virtual Credit Cards

• The meaning of a virtual credit card is simple: it is a temporary, digital credit card created specifically for online transactions. 

• It is a digital version of a traditional credit card that allows you to make online payments without the physical card. 

• Unlike traditional credit cards, virtual cards are not tangible. Instead, they come with a unique card number, CVV, and expiration date. These details are usually auto-generated by your bank. A significant benefit of this is that your actual credit card details remain private and secure.

• When you apply for a credit card, the bank will share a virtual credit card with you before the physical credit card is delivered. You can use this card for online purchases by entering the card details. 

• Virtual credit cards are safer since they reduce the chances of the card information being stolen. This is because these cards are often set to expire after a certain number of uses or days. 

Now that you know what a virtual credit card is, let’s explore what sets it apart from a traditional card. 

How is a Virtual Credit Card Different from A Physical Credit Card?

The major difference between these two cards lies in their usage and format:

Benefits of Using a Virtual Credit Card

A virtual credit card will come with the following benefits:

1. Better Security

The temporary nature of virtual card details ensures a layer of protection against fraud, especially for online transactions.

2. Control Over Spending

With a virtual credit card, you can set transaction limits or expiration dates. This makes it easier to manage and monitor your expenses.

3. Convenience

Virtual cards are easy to generate, and one can use them immediately for online shopping.

4. Instant Blocking

In case of any security concern, you can block your virtual debit card online right away.

5. Ideal for Single-use Purposes

These cards are ideal for one-time or recurring payments, as they reduce the risk of long-term misuse if the details are compromised.

How to Use a Virtual Credit Card?

Now that you know the meaning of a virtual credit card and its benefits, let’s see how you can use one:

1. Generate a Virtual Card

Log into your bank’s mobile app or website and generate your virtual credit card (if you do not already have one). 

2. Note Details

You will receive a unique card number, CVV, and expiration date. Note these for further transactions. 

3. Use for Online Transactions

Enter the card details at the checkout page for your online transaction, like you would with a physical credit card. The amount will be included in your credit card balance. 

At IndusInd Bank, we offer virtual credit cards to our customers even before their physical credit card is delivered. So, if you have applied for a RuPay Credit Card, you will get its virtual version right after your application approval. You can start using your virtual credit card for online shopping, bill payments, and other digital transactions without a physical card. 

Conclusion

To sum up, a virtual credit card is an ideal tool if you are looking for a secure, convenient way to make online purchases. Thanks to its temporary nature, you can shop online without exposing your main credit card details. If you love shopping online, a virtual credit card can help reduce the risk of fraud and give you more control over your spending.

If you are looking to explore the benefits of a virtual credit card, apply for one with IndusInd Bank right away. Our application process is 100% digital, so there is no need to visit a branch or wait for a delivery! Apply now! 

Disclaimer: The information provided in this article is generic and for informational purposes only. It is not a substitute for specific advice in your circumstances. Hence, you are advised to consult your financial advisor before making any financial decision. IndusInd Bank Limited (IBL) does not influence the views of the author in any way. IBL and the author shall not be responsible for any direct/indirect loss or liability incurred by the reader for making any financial decisions based on the contents and information.