The Complete Guide of Virtual Credit Cards & Their Benefits for 2024

Posted by  Fintra , updated 2023-12-06

The Complete Guide of Virtual Credit Cards & Their Benefits for 2024

Fintra here walks you through the world of virtual credit cards and their benefits. A complete guide for beginners to advance.

The list of topics we will be focusing on are as follows:

  1. What is a Virtual Credit Card (VCC)?
  2. How Virtual Credit Cards Work?
  3. Virtual Credit Card: How to utilize it?
  4. Free Virtual Credit Card Given by Banks
  5. Benefits of Utilizing Virtual Cards for Online Installment

What is a Virtual Credit Card (VCC)?

                         Virtual Credit Card

The virtual credit cards (VCC) is pre-loaded, and one of the best-secured choices for making instalments on the web. VCC is an online help connected to your net financial record, and when you are utilizing it, your security isn't undermined. Virtual credit cards are utilized once; within 24 hours if they are not utilized, they will naturally get terminated. Since the card has a prepaid cutoff, dealers cannot cheat you when making an instalment. Past the full parity and day by day utilization limit, you cannot utilize reserves.

How Virtual Credit Cards Work?

                        How Virtual Cards Work

Most online retailers, like Amazon and Flipkart, focus on storing their clients' instalment data. Virtual cards, unlike your typical credit card, utilizes an application to produce another credit card number, or "token," for every exchange. That token is communicated between the bank and the retailer to affirm that it's alright to get the exchange through. However, dissimilar to a typical static token dependent on the data imprinted on your card, these tokens can't be utilized once more, making its stockpiling and potential burglary pointless to would-be fraudsters.

Virtual Credit Card: How to utilize it?

                        How to Utilize Virtual Cards

Making a Virtual Credit Card is very easy. In India, there are banks and non-bank elements that offer Virtual Credit Cards against the essential charge card or the credit card of the clients. You have to make the virtual credit card online at some point before you begin purchasing from sites.

The process goes as follows:

The Legitimacy of Virtual Credit Card:

A Virtual Credit Card is made progressively and it naturally terminates within 24 to 48 hours regardless of whether it's not utilized. If the cash in the Virtual Credit Card isn't completely used, it will be credited to the principal card inside a timeframe as determined in the T&C.

The Discount of Installment Made through Virtual Credit Card:

If the shipper needs to discount the sum, it will be credited to the source record or essential card also.

Free Virtual Credit Card Given by Banks

                    Banks Giving Virtual Cards

Currently, five banks in India are offering Virtual Cards to their clients.

State Bank of India-SBI Virtual Card

Kotak Mahindra-Kotak Netc@rd

HDFC Bank-HDFC NetSafe Card

Hub Bank-Pivot eShop Card

For instance, right now the VCC offered by Hub Bank is just accessible for their VISA credit card variations, and it very well may be utilized at shipper sites that acknowledge VISA cards.

Benefits of Utilizing Virtual Cards for Online Installment

                        Benefits of Virtual Cards

Upgraded Security:

The greatest and the preeminent favourable position of utilizing Virtual Credit Cards (VCC) for online exchange is the security it offers to your essential cards. With VCC you don't need to uncover your genuine card subtleties; henceforth the danger of extortion is significantly less.

Liberated from Cost:

There is no extra charge on making Virtual Credit Cards by banks. You simply need to sign in to the net banking and create it.

Empowered for Worldwide Installment:

The greater part of the Virtual Cards can be utilized at worldwide vendor sites. Nonetheless, you need to affirm this with the bank whose credit card or charge card you are utilizing. Concerning worldwide instalments, VCC is a lot more secure because of its restricted parity and legitimacy. 

No Dread of Robbery or Misfortune:

Virtual Credit Cards don't have a physical presence. So you don't need to stress over it being taken. 


A virtual card has no physical presence and can be utilized uniquely for online exchanges or instalments. The card number is never used in an online transaction. In this manner, there is no danger of the number getting uncovered during an online transaction on the dealer site

Virtual credit cards give considerably more security than physical credit cards. The 16-digit card number is one of a kind for every instalment and is for single utilize as it were. Hence, virtual credit cards are better and safe in the digital world.