What is a Virtual Credit Card and how to apply for it?

We love when we have money to spend. A credit card is often seen as an extended line of credit. Many people use credit cards often. There is a good reason for it. Credit cards offer rewards and cashback. They are safe to use and also help improve a person’s credit score.

However, there is always a fear of losing the physical card. This is why virtual credit cards have become an upcoming trend.

This article will help you understand virtual credit cards and how you can apply for them.

What is a virtual credit card?

As the name suggests, a virtual credit card is not a physical card that you can hold. In fact, it is safer than the traditional credit card. A virtual card is available online. Its uniqueness lies in the fact that its number is generated randomly online. This means that every time you use your virtual credit card to make a transaction, its number will change.

How does a virtual credit card work?

A virtual credit card works like a chip credit card. On chip credit cards, the single-use number changes every time the card is used. Virtual credit cards work on the same principle.

Are Virtual credit cards actually safe?

Yes. As the number of a virtual credit card is randomly generated and changes every time you use it, a virtual credit card is quite safe. Let’s assume that a scammer got your account number from a chip card and attempted to duplicate it. But the scammer’s efforts would be useless because the unique number changes with every use.

Similarly, a virtual credit card uses temporary account numbers that scammers and hackers can’t trace. This makes virtual credit cards highly safe to use.

How can you use a virtual credit card?

A virtual credit card functions just like a traditional credit card. It has a unique card number, CVV, and date of validity. Virtual credit cards can be used for all sorts of transactions. The only difference is that a virtual credit card is on your smartphone. Therefore, to make the transaction, you’ll have to use your smartphone.

What is the validity of each virtual credit card use?

When a number is generated for a virtual credit card, it is only meant for one-time use. The number cannot be used for multiple transactions. It stays active for 48 hours only. You will need to send a new request to generate a new number if you want to make another transaction.

Who can apply for a virtual credit card?

A virtual credit card is only issued to the primary credit card holder. No other individual or secondary person can use the virtual credit card.

There are some institutions that provide virtual credit cards to those who do not have credit cards. However, the virtual credit card given to those people would be linked to their debit cards or bank accounts.

How can you use a virtual credit card?

A virtual credit card can only be used for online transactions, and there is no need to swipe the card physically. Here are the steps you need to follow while using a virtual credit card:

1. Add the card number.
2. Enter the validity of the card.
3. At this point, you will receive an OTP on your registered mobile number.
4. Enter the OTP and confirm.
5. Complete the transaction.

Assume you’ve decided to use virtual credit cards. However, you don’t have one yet. Let’s take a look at what you can do in this case.

What can you do if you want to apply for a virtual credit card?

Make sure that your credit card provider also provides virtual credit cards. If the card provider issues a virtual credit card to its users, only then will your credit card provider will issue you a virtual credit card.

But you must remember that virtual credit cards are only issued to those who hold a credit card, as the virtual credit card is linked to your pre-existing credit card service.

These days, many banks and NBFCs give virtual credit cards to their customers for free.

How do I apply for a virtual credit card?

Here are the steps you need to follow when you apply for a virtual credit card:

1. The first step is to check if your credit card provider has issued virtual credit cards.
2. If the bank, or whoever your credit card provider is, gives virtual credit cards to its users, you will be asked to submit your account and card details.
3. Once the request is processed, you will receive your virtual credit card.

But what if your credit card provider doesn’t issue virtual credit cards? Don’t worry. In that case, you can simply put in a request with any bank that offers virtual credit cards to its users.

Conclusion

A virtual credit card is a boon for many people. It is safe and easy to use. However, one must be aware of a challenge that can arise when using virtual credit cards. Returning items that you bought online can be a hassle. While you may get a gift card, you won’t receive cashback in your account.

But all in all, a virtual credit card has many benefits, with safety being its most salient feature. And the application process is equally simple. To learn more about virtual credit cards and where you can apply for one, visit the Piramal Finance website.