Apply for a Virtual Credit Card

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What is a Virtual Credit Card

A Virtual Credit Card, or VCC, is a new-age credit card with no physical form. It is an online credit card you can usually use to carry out a single transaction. Since it exists online, you can only use it to carry out online transactions. Like conventional credit cards, it also has a card number, CVV number, validity, and expiry date. All of these details are available online. Most credit card issuers or financial companies these days provide their customers with virtual credit cards as an add-on service, if they already own a primary credit card. In this article, we will help you understand everything about VCCs and why you should use them.

How To Apply For A Virtual Credit Card

If you want to apply for a virtual credit card, here is what you need to do:

 

  • You should first check if your credit card issuer provides a VCC.

  • If your card issuer provides one, then you need to submit your account and card details to them.

  • After processing the information, your credit card issuer will issue a virtual credit card to you.

However, this only works if you have a pre-existing credit card and your issuer provides the service of linking it to an online service. Another way to get a virtual credit card is to place a request with any bank that provides this service to their customers. Some banks and NBFCs even provide virtual credit cards for free to their existing customers.

Features And Benefits Of A Virtual Credit Card

Check out the features and benefits of a Virtual Credit Card mentioned below:

1. Security

Virtual Credit Cards are instantly generated and can be used only once. The validity of the card ranges from 24 hours to 48 hours. Since it is available only online, there are minimal chances of theft or misuse. You can also cancel the card at any time. Since the Reserve Bank of India is the governing body for VCCs, you must submit a KYC and other documents before getting one. The card cannot be stolen or messed with during swiping as it does not have a physical form.

2. Credit Limit

Similar to physical credit cards, Virtual Credit Cards, too, have a credit card limit. It is similar to that of the physical card, and you can make multiple online transactions within this limit. Usually, the cardholder can change the limit on their Virtual Credit Card online. When you do so, you will receive an OTP on your registered mobile number, and you can change the transaction limit on your card.

3. Immediate Access

Customers can get Virtual Credit Cards instantly. The Virtual Credit Card providers issue them online, and you can access them immediately.

4. For Primary Customers

The issuing of a Virtual Credit Card is free for primary cardholders. You can apply for a Virtual Credit Card only if you are a primary customer.

5. Online Application and Blocking

You can apply for a Virtual Credit Card and block your card online easily in case of suspected fraudulent activities.

6. Same CVV

The CVV of the Virtual Credit Card remains the same once it is issued. It changes only when you cancel it and issue a new one online.

7. Highly Convenient

As there is no physical card to carry, you can conveniently store the details of the virtual credit card on your smartphone. This practically enables you to make virtual payments and carry out transactions securely. No more inconvenience of carrying and keeping a physical card safe.

8. Seamless Global Payments

Whether you want to make a domestic payment or an international one, you don’t have to think twice about the virtual credit card. It seamlessly allows you to make payments globally.

9. Utilise Unused Credit Limit

If there is an unused credit limit and your virtual credit card expires, you can easily transfer the same to your primary card. 

10. Available for Free

Typically, there is no fee involved in the issuance of virtual credit cards. You can get one without incurring any cost if you are an existing customer of the bank with a primary credit card.

How to Use a Virtual Credit Card (VCC)

Using a virtual credit card is exactly like using a physical credit card for online transactions. All you have to do is follow these simple steps.

 

  • Step 1: Enter the 16-digit number of your credit card.

  • Step 2: Enter the expiry date of your card.

  • Step 3: Verify by entering the OTP received on your registered number.

That’s all. You will be notified with a message after the transaction is successfully completed.

Important Things to Consider before Applying for Virtual Credit Card

There are key things to take note of before applying for a virtual credit card. They are:

 

  • Having a primary credit card is a prerequisite to getting yourself a virtual one. Without a primary card, VCC cannot be availed.

  • Virtual credit cards offer numerous benefits but cash withdrawal is not one of them. These cards are essentially designed to meet your online needs.

  • Due to their non-physical form, virtual credit cards are not useful while you shop at stores and malls where cards are required to be swiped to make transactions.

Virtual Credit Cards Offered by Different Banks

Here are the different online Virtual Credit Cards available free of cost to a primary customer.

Offered by Banks

  • HDFC NetSafe

  • Federal Bank One Credit Card

  • SIB OneCard Credit Card

  • SBM OneCard Lite Credit Card

Offered by NBFCs

  • FreeCharge Go MasterCard

  • Oxigen Wallet Virtual Card

Difference Between Credit Card, Virtual Credit Card, and Debit Card

Check out the difference between VCC and other cards before creating a Virtual Credit Card online.

Features

Credit Card

Debit Card

Virtual Credit Card

Form

Physical

Physical

Virtual/Digital

Credit

Extends credit

Not available

Extends credit

Usage

For both online and offline transactions

For both online and offline transactions

For only online transactions

Transaction amount

Debited from the credit limit on your credit card account

Debited from your current or savings bank account

Debited from the credit limit on your credit card account or your debit card balance

Validity

For a few years

For a few years

1-2 days

Fees and charges

Fees and charges involved

Fees and charges involved

No fee or charge

Why You Need to Use a Virtual Credit Card

There’s not one but plenty of reasons why you should be using a virtual credit card.

 

  • Enables easy online transactions.

  • Minimises the risk of fraud.

  • Fully eliminates the possibility of theft.

  • Cuts off the hassles of carrying a physical card.

FAQs about Virtual Credit Card

  • ✔️Can I use my virtual credit card for offline transactions?

     No, you cannot use them for offline or POS transactions since virtual credit cards are online and not available in physical form.

  • ✔️Can I use my virtual credit card for international transactions?

     International transactions on all cards depend on the issuer of the card. So you have to contact the card issuer to know whether you are eligible to use virtual credit cards for international transactions.

  • ✔️How does a virtual credit card work?

     A virtual credit card can be used only for online transactions and thus, cannot be swiped. Given below are the simple steps in which a VCC works.

    - Enter your VCC number

    - Type in the validity of the card

    - Verify the OTP sent to your registered mobile number

    - Complete your transaction online using virtual credit card

  • ✔️Are virtual credit cards safe?

     Yes, virtual credit cards are safe to use for a multitude of reasons. Since the card does not have a physical form and only exists online, it cannot be stolen. It also usually only exists for 1-2 days and can be used for only one transaction, thereby making it safer to use than normal credit cards.

  • ✔️What are the reasons to apply for a virtual credit card?

     You should get a virtual credit card for the following reasons:

    - They are incredibly safe as they can only be used online, and a single time.

    - If the VCC expires, the remaining credit limit is transferred to the primary card.

    - Both national and international online transactions are possible with these cards..

  • ✔️Can I withdraw cash using my virtual credit card?

     No. A virtual credit card can only be used for online transactions.

  • ✔️What limit do I get for my virtual credit card?

     If you already own a credit card and connect it online through your provider, you will have the same limit in your virtual credit card as your primary one. You can also set a limit to the VCC if you choose to do so.

  • ✔️What happens to my credit limit after my virtual credit card expires?

     f your virtual credit card expires, usually the available credit limit is transferred to your primary credit card.

  • ✔️ How long does it take to get my virtual card generated?

    Since a virtual credit card is linked with an existing primary card, it is usually generated instantly. As soon as you get the 16-digit VCC number and its validity, you can start using it for online transactions.

  • ✔️ Who can apply for a virtual credit card?

    A person with a primary credit card can apply for a virtual one. You must find out whether or not the issuer bank offers the service of VCC. If not, you can contact the bank or other financial institutions that offer virtual credit card services.

  • ✔️ What are the limitations of a virtual credit card?

    Since the VCCs are not available in physical form, you cannot use them for POS transactions at offline stores and malls. Also, the virtual credit card does not allow you to withdraw any cash.

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

    No. Usually, banking companies do not charge anything for issuing virtual credit cards to their existing customers. However, some banks or financial institutions may charge you a nominal fee which is typically waived off upon spending over a certain limit.

  • ✔️ Can there be a virtual credit card for add-on cardholders as well?

    No. Generally in India, virtual credit cards are issued to the primary cardholders only.