How a virtual credit card works

A virtual credit card is a digital version of a physical credit card. It works in a similar way, allowing you to make online and in-app purchases, but without the need for a physical plastic card. Here’s how a virtual credit card works:

1. Virtual Card Issuance:

Generally, virtual credit cards are issued by the banks or financial institutions that issue your physical credit cards. They are available through the bank’s mobile app or online platform.

2. Assignment of Virtual Numbers:

A virtual credit card has a unique set of numbers, which include a unique card number, expiration date, and security code (CVV). These numbers are generated electronically and are different from the numbers on your physical card.

3. Online Use:

You can use your virtual credit card to make online purchases in the same way you would use a physical credit card. When making a purchase, enter your virtual card numbers in the appropriate fields on the website or purchasing application.

4. Enhanced Security:

One of the main advantages of a virtual credit card is security. Because card numbers are unique and not physically present on a physical card, they are more difficult to steal or clone. Additionally, many virtual cards allow you to set spending limits or establish a temporary validity for the card, which adds additional layers of security.

5. Expense Control:

Virtual credit cards can also be useful for controlling your online spending. Since they are linked to your main account, you can load them with a specific amount for a specific purchase, avoiding spending more than planned.

6. Limitations and Validity:

Virtual credit cards usually have an expiration limit, after which they can no longer be used. This is done to ensure that if someone gains access to your virtual card numbers, they will have a limited period of time to use it.

7. Not Physical:

It is important to note that virtual credit cards are not physical and cannot be used for purchases in physical stores, as they do not have a physical form to swipe through a card machine.

8. Ease of Cancellation:

If you suspect your virtual card has been compromised or want to end use of it, you can usually easily cancel it and generate a new virtual card.

In short, a virtual credit card is a convenient and secure tool for shopping online and controlling your spending. They are especially useful for protecting your financial information and provide an additional layer of security for internet transactions. Be sure to check with your bank or credit card provider for specific details on how to create and use a virtual credit card.