Virtual credit card | How to use a Virtual Credit card

Virtual credit card | How to use a Virtual Credit card

Have you lost a credit card or a debit card in the past? I you have not, maybe you have a broken credit card or rather had one damage or the other. Then if you’d any of these challenges, You’ll appreciate a Virtual credit card.

virtual credit card

Virtual credit cards

With the Virtual credit card, you’re protected from the risk of carrying credit cards around. Buying items online with a virtual credit card number makes your purchases more safe even when you’re dealing with an unscrupulous dealer.

What is a Virtual Credit card?

A virtual credit card (VCC) is a non-tangible (non-physical) credit card with a randomly-generated card number that’s connected to an actual credit card. You can set a maximum charge for the virtual card number depending on the virtual card Issuer.

However, you can set it to expire anytime you want up to one year. Charges for usages can be the same as your physical credit card. The only difference is that your dealer can’t have access to the actual card.

How to use a Virtual credit card

Whenever you’re buying online with your virtual card, all you need is to provide the required information from the merchant. It comes with all the information that your physical credit card comes with. The only thing that it’s not tangible. It’s neither Plastic or in any form, it’s just your card numbers that you can use to pay for your items purchased online.

Your card issuer can set the limit of your credit access to the card and you can use it for any payment you can make with the tangible credit card.

Where can I get a Virtual credit card?

Most of the Big Banks like the Bank of America offer virtual credit card service known as ShopSafe.  Capital One offers its own known as ENO.  You can contact your credit card issuer to know if they offer virtual cards.

But in case your card issuer doesn’t offer virtual credit cards, you can use any of the available third-party services that can collaborate with your cards. One of these services is Entropay; this allows you to create virtual and disposable credit cards free of charge. Another one to try os Final, it’s other third-party services that can offer your virtual card services.

Most of these virtual cards come with nice customizable features that may not be in your Standard credit cards. Such features include Setting ‘’valid through’’ dates, automated bill pay and spending caps. Using any of these features ensures you get safer online transactions.

What are the Downsides of Using Virtual credit cards?

One of the very negative parts of the virtual credit cards is that they can only be useful in online purchase purposes. That’s to say that you can’t use it in situations where you’d want to swipe a credit card on a credit card machine. It’s difficult to make returns in case of the use of an expired virtual card.

In that situation, you’ll have to take store credit. If you’re dealing with a crooked dealer, he can take your money without shipping the products.

Why will you prefer Virtual Cards

Virtual cards payment is done with the unique information, so, if stolen, it won’t be of any importance for the thief. This is because the information entered by the merchant can only expire after a short period of time. It’s advisable to use when buying from a retailer for the first time.

Or you can use it if you’re not sure of the security of the purchase. Since the cards are not physical, you can‘t clone them.

Use of virtual Cards for Corporate Purposes

Virtual cards have grown from Private to corporate clients. Corporate bodies can take advantage of their flexibility and make payments faster. It’s more secure than carrying cash and having a physical credit card that can be cloned or stolen.

It contains a 16 digit number together with a special CVV code with an expiry date which is gotten each time a company wants a virtual card. You can set up different kinds of restrictions on the card for more safety.

Companies can use the virtual card to pay for products, delivery, travel and other running expenses of the company.

There’s no doubt that virtual cards would become the safest payment mode in the nearest future, both for companies and individuals.

Key Benefits of Virtual credit cards

  • Valid for just a specific period of time
  • Ensures Transaction limits.
  • States the minimum and maximum credit limit  in any transaction per day
  • It’s very flexible (Depending on the issuer)

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