Just think for a moment, online shoppers from all around the world enter the credit card or debit card details like Name, card number, CVV, and other sensitive information on the payment gateway mindless to the possibility of data theft or identity theft. This is why Virtual Credit Cards were designed. Let’s explore everything about Virtual Credit Card and its features.
What Are Virtual Credit Cards? Here’s Everything You Need To Know
If you look closely, we will find that the number of online shopping purchases is on the rise. Now, Online shopping has become mainstream, and you can get almost everything delivered at your doorstep. In fact, Online Shopping can help you to save a few bucks because we get multiple discounts, offers, and amazing deals.
But, all these comforts invites lots of security threats too. In fact, the payment gateway of some popular online shopping sites is now the prime target of cybercriminals. Credit card holders are often the victim of formjacking activity because credit cards offer hefty credit limits.
Just think for a moment, online shoppers from all around the world enter the credit card or debit card details like Name, card number, CVV, and other sensitive information on the payment gateway mindless to the possibility of data theft or identity theft.
So, to address such issue and to keep users on the safe side, banks have come up with Virtual Credit Cards.
What Is a Virtual Credit Card?
Well, Virtual Credit card is not the physical card that you can hold. It’s randomly generated to protect your traditional credit card information safe. In short, Virtual Credit card is a randomly generated 16-digit temporary number that can be used to make online purchases.
But, Virtual Credit Card comes with a twist. On Virtual Credit Card (VCC) you need to set the minimum and maximum charge amount. So, with that only the set amount will be used for online purchases. Not just that, but Virtual Credit Cardholders can also set the expiry date. So, Virtual Credit card reduces the risk of credit card and identity theft.
What are the benefits of Virtual Credit Cards?
- They Can’t be Cloned – Unlike Physical credit cards, virtual credit cards are tough to clone.
- Safe – The great thing about VCC is that it provides a random 16-digit number which is temporary. Not just that, but the Virtual cards don’t have any affiliation with the physical credit card number.
- Spending Limits – Well, as we all know, Virtual Credit cards allow users to set a maximum spending limit. This thing can help you if anyone does get a hold of the virtual credit card.
Negatives of Virtual Credit Cards
- Limited To Online Purchases – Unlike Physical credit cards, Virtual credit cards are only limited to online purchases only.
- Online Accounts – Well, you need to sign up for the Netbanking in order to generate Virtual Credit card.
- Limitation – Customers are allocated with a minimum and maximum transaction limit.
So, this is all about the positives and the negatives of Virtual Cards. Virtual Cards are designed to reduce theft, but, it’s not entirely safe. However, the offer an extra layer of security. Even if you hold a virtual card, it’s recommended to check your credit card and bank statement regularly to be on the safe side. So, what do you think about this? Share your views in the comments.