Everything you should know about virtual credit cards

Summary: Virtual credit card comes with enhanced security features to be used for online transactions. Learn the benefits of virtual credit card

04 May 2023 by Team FinFIRST

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Unlike conventional credit cards, virtual credit cards don’t have a physical existence. They are mostly used for online transactions and are easy to use. Let’s understand them in detail.

In general, banks and financial institutions offer credit cards as a method of accessing short-term quick loans. Usually, these cards are metal or plastic pieces with an embossed credit card number, holder's name and CVV. In addition to physical credit cards, most banks nowadays offer virtual credit cards that have their own card number, cardholder's name, and other details similar to a physical card but without any physical existence. This article discusses all the features and benefits of a virtual credit card.

What details does a Credit Card statement provide?

Know how a Credit Card works in India

What are virtual credit cards?

As the name suggests, a virtual credit card does not have any physical form and comes with enhanced security features to be used for online transactions. They have their unique credit card number and CVV details without any physical existence.

Just like a physical credit card, you can perform online transactions using the credit card number and the CVV. Moreover, you can manage them using your credit card account and even set transaction limits without hassles.

VCC or virtual credit cards provide security and easy access to funds. Moreover, you won’t face the hassle of blocking your misplaced card if you are a virtual credit card holder. If you are looking for credit cards with exciting rewards and privileges, IDFC FIRST Bank offers a range of credit cards suiting your requirement, and comes with advanced security and attractive interest rates. For instance, the FIRST EA₹N Credit Card is a virtual secured credit card that offers exciting cashback offers and is backed by a minimum fixed deposit amount of ₹5,000.

Features and benefits of virtual credit cards

Along with safety and security, virtual credit cards offer several benefits and features to enhance your shopping experience. Following are some important features offered by a virtual credit card.

• Convenient to use

Since virtual credit cards have no physical existence, these cards are easy to carry as the details can be stored on your mobile phone. It eliminates card loss, theft, and fraud. Virtual cards with NFC features don’t even require you to enter card details manually.

• Enhanced security

Virtual credit cards aim to provide enhanced security for your transactions. Since you don’t need to swipe the card physically, it is nearly impossible to steal the card details and use them for fraudulent activities. In addition, VCCs are available for a one-time transaction or for up to 48 hours, which enhances card security.

• Easy card management

You can conveniently manage your online virtual credit card using your credit card account. Along with setting a transaction limit, you can also freeze and unfreeze your VCC with just one tap. Moreover, you can acquire an instant virtual credit card for an online transaction using your online savings account.

• Instant application and blocking facility

Credit cardholders can apply for a virtual credit card instantly through an online application using the mobile app or net banking. In addition, they can block or deactivate virtual cards after use and transfer the remaining credit limit to the physical card.

• Issued to primary cardholders

Virtual credit cards are only available to primary cardholders for security reasons. Additional card users and add-on users cannot use the virtual credit card.

• CVV remains the same

The CVV number of a virtual credit card remains the same irrespective of the number of transactions. However, it changes if the customer deactivates the current VCC and applies for a new one.

How to use a virtual credit card?

Virtual credit cards in India can only be used for online transactions. Some NFC-enabled POS machines can also perform transactions using virtual credit cards. Here are the steps to use a virtual credit card.

• Enter the credit card number and validity.

• Proceed with OTP verification.

• Enter the OTP received on your registered mobile number.

• Complete the transaction.

Should you opt for a virtual credit card?

Instant virtual credit cards are easily available in India and, considering the security and convenience they offer, they are preferred for online transactions. However, there are some limitations too. Since these cards cannot be used at ATMs, withdrawing funds is impossible using a virtual credit card. But considering the advantages and features VCCs offer, you should opt for a virtual card at your convenience.

Disclaimer

The contents of this article/infographic/picture/video are meant solely for information purposes. The contents are generic in nature and for informational purposes only. It is not a substitute for specific advice in your own circumstances. The information is subject to updation, completion, revision, verification and amendment and the same may change materially. The information is not intended for distribution or use by any person in any jurisdiction where such distribution or use would be contrary to law or regulation or would subject IDFC FIRST Bank or its affiliates to any licensing or registration requirements. IDFC FIRST Bank shall not be responsible for any direct/indirect loss or liability incurred by the reader for taking any financial decisions based on the contents and information mentioned. Please consult your financial advisor before making any financial decision.

The features, benefits and offers mentioned in the article are applicable as on the day of publication of this blog and is subject to change without notice. The contents herein are also subject to other product specific terms and conditions and any third party terms and conditions, as applicable. Please refer our website www.idfcfirst.bank.in for latest updates.