Santa Claus comes around just once a year. In the meantime, there are Credit Cards.
  • Virtual Credit Card (VCC)

    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 card on their primary cards.

    Like physical credit cards, a virtual credit card has its own unique card number, validity date, the expiry date, and the 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 a very short validity.

    Benefits of Using Virtual Credit Card

    A virtual credit card comes with a good number of benefits and the most significant ones among them have been listed below:

    Convenience: Because the virtual credit card doesn’t have any physical form, its details can be saved on your mobile phone and the same can be used for carrying out transactions. Thus, the hassles of carrying physical cards are entirely eliminated.

    Security: Because you don’t have to swipe the virtual card to make payments, it’s nearly impossible for miscreants to carry out fraudulent activities with the card. Also, the governing body for virtual credit cards in the country is the Reserve Bank of India (RBI). To get a virtual credit card, you have to submit the KYC documents and the issuer needs to approve them.

    The option of setting the limit: You also get the chance to set the limit on your virtual credit card and the payments would be authenticated by one time passwords (OTPs) sent on your registered mobile number.

    Easy cancellation: If for any reason, you have to cancel the card, you can do it effortlessly through your smartphone.

    Difference between Debit Card, Credit Card and Virtual Credit Card (VCC)

    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

    Reasons to use a virtual credit card

    The primary reasons 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 frauds are nearly zero. Also, because there is no physical card involved, the associated hassles are grossly cut down.

    Virtual Credit Cards Offered by Different Banks

    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.

    Here are a few top Virtual Credit Cards offered by NBFCs.

    • Oxigen Wallet Virtual Card
    • FreeCharge Go MasterCard

    FAQs on Virtual Credit Cards

    1. Can I use my virtual credit card for offline transactions?

      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.

    2. How do I get a virtual credit card for myself?

      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.

    3. Can there be a virtual credit card for add-on cardholders as well?

      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.

    4. Can I use my virtual credit card for international transactions?

      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.

    5. Do I need to pay any amount if I apply for a virtual credit card?

      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.

      

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