Santa Claus comes around just once a year. In the meantime, there are Credit Cards.
As the name suggests, a virtual credit card (VCC) is a new-age and a one-time use credit card that has no physical existence. And because it has no physical form, the card is used for carrying out online transactions only.
Today, virtual credit cards are provided by most major credit card issuers to their customers as an add-on credit card on their primary cards. Like physical credit cards, a virtual credit card has its own unique card number, validity date, expiry date, and CVV number which are visible online. You can also set your own spending limit on the virtual credit card. However, these cards may usually have very short validity.
Convenience:
Security:
The option of setting the limit:
Easy cancellation:
Provided to primary cardholder:
Instant access:
Instant blocking of cards:
Avail domestic and international transactions:
Remaining credit limit gets transferred to the primary card:
Virtual credit cards are issued for free:
Virtual credit cards in India are provided by banks as well as Non-Banking Financial Companies (NBFCs).
Here are a few top Virtual Credit Cards offered by major banks in the country.
| Bank Name | Card Name |
|---|---|
| HDFC Bank | HDFC NetSafe Virtual Credit Card |
| Axis Bank | Axis Bank FreeCharge Credit Card |
| Kotak Mahindra Bank | Kotak Mahindra Bank Netc@rd |
| HSBC Bank | HSBC Advantage Virtual Card |
| SBI | SBI Corporate Virtual Card |
| South Indian Bank | SIB OneCard Credit Card |
You can make transactions with your virtual credit card by following the steps mentioned below:
Step 1: Enter the card number and validity.
Step 2: An OTP will be sent to your registered mobile number.
Step 3: Enter the OTP and make the payment.
Before you apply for a virtual credit card, here are a few things you should remember:
| Terms | Debit Card | Credit Card | Virtual Credit Card (VCC) |
|---|---|---|---|
| Form | Physical (plastic) | Physical (plastic) | Digital (no plastic) |
| Credit | Not available | Extends credit | Extends credit |
| Usage | Can be used for both online and offline purchases | Can be used for both online and offline purchases | Can be used for online purchases only |
| Security | The card is safe to use and can be blocked by the user by raising a request | The card is safe to use and can be blocked by the user by raising a request | The card is safe to use and can be blocked by the user by raising a request |
| Transaction amount | The amount is debited from your current or savings bank account | The amount is debited from the credit limit on your credit card account | The amount is debited from the credit limit on your credit card account or your debit card balance |
| Validity | Usually valid for a few years | Usually valid for a few years | Usually valid for 1-2 days |
| Number of transactions | Unlimited | Unlimited | Can usually be used only for once |
| Associated fees and charges | Fees and charges involved | Fees and charges involved | Usually no fee or charge |
The primary reason to opt for a virtual credit card is to pay for your online transactions. It’s safe to use a virtual credit card and the chances of fraud are nearly zero. Also, because there is no physical card involved, the associated hassles are grossly cut down.
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 expiry of your virtual credit card, the unused credit limit will be transferred to the primary card.
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