What is Virtual Credit Card and How does it work?

Virtual Credit Card

What is Virtual Credit Card (VCC)? How virtual credit card help cashless transaction? With demonetization of Rs 500 and Rs 1000 notes, we are moving towards a cashless economy. It is claimed that cashless transactions are increasing in India. An increase in cashless transactions means an increase in the cybercrime and hacking attempt. A virtual Credit card is a secure cashless option that can protect you largely against hacking attempts or frauds. So, what is Virtual Credit Card? What are its benefits? How does virtual credit card work? In this post, I will provide complete details of Virtual Credit Card.

What is Virtual Credit Card (VCC)?

A virtual credit card is a replica of the real credit card that the user can generate online anytime whenever he/she wants to transact on any specific websites. VCC is a prepaid card that can be used only for the online transactions. A virtual credit card can be used only once and it expires automatically after 24 hours if not used. A virtual credit card is also called as a debit card as it does not give you any credit facility. VCC is the safest way to pay money online even if card information is compromised, the hacker cannot use the card beyond balance limit. In most of the cases, you need internet banking along with physical credit card to generate VCC.

Features of Virtual Credit Card

  • It is a virtual card so you need not worry about theft or misuse.
  • It is a prepaid card where you can define your own limit.
  • A virtual credit card is one-time use card and it is self-destroying after 24 hours.
  • This card can be used only for online purchases.
  • No additional service charge applicable for using virtual credit cards.

Why should you use Virtual Credit Card?

The three compelling reasons for using a virtual credit card are given below.

Security

The biggest benefit of using a virtual credit card is security and peace of mind. You can simply avoid a credit card fraud by using VCC. This card can be used only once. Once CVV number of VCC is used it becomes invalid so, it eliminates the chance of misusing credit card information. This card is self-destroying and it expires automatically after 24 hours so usage period of this card is limited.

Flexibility

This card gives the flexibility to end user. It can be generated anytime using any amount starting from Rs.10 to Rs.50, 000.

Free

Virtual credit cards are free. In India bank don’t charge any money for making and usage of virtual cards.

Virtual Credit Cards provided by Banks

  • Kotak [email protected]

You can generate Kotak [email protected] by following the procedure given below.

Go to http://www.kotak.com/ and log on to Net Banking using your login ID (CRN) and password. Click on “[email protected]” tab post which you will receive an OTP at registered mobile number. Select the account from which you wish to draw funds for creating [email protected] and click OK to generate.

  • SBI Virtual Card

The process of generating SBI virtual card is given below.

Visit SBI Internet Banking https://www.onlinesbi.com/ and Login using internet banking user ID and password. Click on “e-card” tab and select “State Bank Virtual Card Option”. Select Account number and enter virtual card limit. After verification generate Virtual Card.

  • HDFC Bank Netsafe

The generation of HDFC Bank Netsafe virtual card is given below.

Visit Netsafe HDFC website. Accept terms and condition and enter your Credit card number and expiry date. On submission of detail, the system will ask you to generate a virtual card with a credit limit.

Virtual Credit Cards provided by Service Providers

  • FreeCharge Go MasterCard

Freecharge Go MasterCard is provided by freecharge. It is a free virtual card. It is powered by master card and Yes Bank. You can use this card across any online merchant.

  • Entropay Virtual Visa Card

Entropay is not based in India. Entropay offers free virtual visa cards. Entropay is open to anybody and is usable internationally. However, this product is not used in India.

Over to You –

From above discussion, it is clear that virtual credit card gives multiple benefits and it is best in terms of security, however, this card has certain limitations. You cannot use this card at a store or for telephonic purchase. This card cannot be used for the withdrawal of cash.

Looking at benefits I have decided to use a virtual credit card now onwards. What about you?

Article by Raviraj

Hi, I am Raviraj. I am passionate about money matters and finance. I have 10 years of rich experience in the field of financial planning, Investments & Insurance. I have written 850+ article on this blog. If you like my efforts kindly subscribe to this blog and also let your friends know about this website by sharing.

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1 Comment

  1. Manjit says:

    Thanks for sharing the info.

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