Virtual credit cards as the term describes, are online cards. This means that that are not issued physically by any financial organization. It is a free service offered by banks to its customers who wish to make an online payment using their debit/credit cards. Some examples are SBI-Virtual Card, ICICI VCC, Axis Bank e-wallet card, HDFC NetSafe.
It can be created using the Internet banking facility by providing one’s credit/debit card details. It does not require extra charges.
After you have a virtual card, there is no need to type any card number, expiry date or CVV while doing transaction, thus making your purchase completely secured.
Some important points to know about Virtual cards:
- A Virtual Card is a one-time use online card (no physical existence) that can be used only for online transactions or payments.
- Anyone with Internet banking facility with transaction rights or a valid debit or credit card can create a Virtual Card.
- Virtual Cards are valid for a maximum of 48 hours or till the transaction is completed, whichever is earlier.
- Customer can make only one payment with the virtual card in which they can use all the credited balance or a part of it.
- The amount is debited only when the purchase is completed successfully.
- In any case if there is any balance amount left on the virtual card after its use, it will be credited back to the customer’s account.
- The virtual card facility is available to the primary cardholder only and not the secondary cardholder.
- It protects the user from card related frauds as the primary card or account details are not communicated to the merchant.
- Since virtual credit card does not have a physical existence, it cannot be cloned, making it highly secure for all transaction purposes.