What is Virtual Credit card and how does it work?

What is Virtual Credit card and how does it workWhat is Virtual Credit card and how does it work?

If you are frequent user of credit card for online transactions, you should be little cautious as there are several credit card frauds happening all over the world. The alternative for this is using a virtual credit card. In this article I would discuss about what is virtual credit card and who should be using them.

What is virtual credit card?

Virtual credit card is an e-card which is like any other credit card where you can use to make payment for online transactions. These cards are issued by all major banks in India. Just login to your website and see the option to create a virtual credit card. Provide the specific amount you want to use  and submit the request. You would get a virtual credit card online which contains the card number, Validity from and Valid to dates/Expiry date and CVV number. You can use this virtual credit card for any amount of your choice.

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How to use Virtual Credit card?

There is no difference between the usage of virtual credit card or plastic credit card. Virtual credit card has an expiry date of 24 hours to 48 hours depending on the bank. Means, you should use this virtual credit card within this timeframe, else it would get expired. When you make payment for online transactions, you need to have credit card number, validity period, CVV number etc. All these details are available in Virtual Credit card.

What are the benefits of Virtual Credit card?

  • You can reduce miss-use of credit card.
  • Even in case of miss-use, the amount of fraud would be limited to the amount of virtual credit card you have created thereby limiting the risk.
  • The details such as customer name, address etc. would not be shared with merchant.
  • The card can be used only once. Means, if you make transaction online with virtual credit card, you nor any other person can make second transaction.
  • You can create a virtual credit card only after you login to bank website and a OTP password is entered. Hence it would be almost low risk of creating and using virtual credit cards for online transactions.

What happens for any unutilized or unused amounts on Virtual credit card?

If you have taken a virtual credit card for a specific limit and used for a lesser amount, the unutilized amount would be immediately available once the transaction is done or once the card is expired whichever is earlier.

Also Read: Interview with a Crorepathi: Daily wage earner turned Crorepathi

Conclusion remarks: With growing internet frauds, in case you are a regular user of credit card for online transactions, you should try these virtual credit cards so that your plastic credit card is not miss-used.

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What is Virtual Credit card and how does it work

Suresh KP


  1. Hi , thanks for the sharing. May i know do i need to have a physical credit card to generate my virtual card or just a online bank account will do ?

  2. Very valuable information about the virtual credit card.

    Do they have any prepaid credit cards which can be refilled and used online.


    1. Mukesh, As per my knowledge there are no additional charges for using Virtual credit card. The rules which apply for credit card applies for vcc too

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