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.
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.
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.
|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 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 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.
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.
Display of any trademarks, tradenames, logos and other subject matters of intellectual property belong to their respective intellectual property owners. Display of such IP along with the related product information does not imply BankBazaar's partnership with the owner of the Intellectual Property or issuer/manufacturer of such products.