What virtual credit cards are and how they work

A virtual credit card is an electronic card which can be created using the bank’s net banking facility, by providing one’s credit or debit card details. No charges have to be paid for the same. As the name suggests, they need not be physically issued by card providers.

Each virtual card comes with its own card number, CVV number and validity details. It can be used for online transactions just like regular credit cards. You can just use your smartphone to transact.

A virtual card allows secure online transactions as it reduces the risk of exposing the underlying credit/debit card details to the vendor. Since they are only visible to you, any chance of cloning or fraud is negligible.

Every virtual credit card is meant for one time use. It is created for a single online transaction and is valid for a maximum of 48 hours. The credit limit and validity period may vary from bank to bank.

Virtual credit cards are issued only to the primary card holder, not to any secondary holder. A virtual card may be available to non-credit card holders too. In their case, the virtual credit card will be linked to their debit card or the account.