A Credit Card refers to a kind of credit facility that various banks offer. It works as a financial tool that provides a predetermined credit limit to individuals and lets them make purchases and payments up to that amount. Each payment you make using your Credit Card essentially means you are borrowing funds from the card issuer.
Credit Cards offer users the financial flexibility to shop, pay their bills, and fulfil their urgent need for funds. However, individuals should ensure they pay their Credit Card dues on time. Today, you can conveniently even utilise an Online Payments App that functions as a Credit Card bill payment app to pay your Credit Card bill on time.
Several Credit Card issuers also offer individuals the benefit of a Virtual Credit Card. This could boost security and make customer transactions easy. Let us check out its various features.
Overview of a Virtual Credit Card
A Virtual Credit Card refers to a kind of Credit Card that exists online. Issuers of Credit Cards usually offer Virtual Credit Cards as an add-on card feature along with your primary Credit Card. These digital cards do not have a physical form. Instead, all the information available on your physical card, i.e., CVV, card number, expiration date, etc., is displayed online.
Hence, a Virtual Credit card is like your conventional Credit Card. However, you can use it for online transactions, and all the details are available online. A Virtual Credit Card works as a virtual extension of your physical Credit Card, and you can only utilise it for online transactions.
Nowadays, your bank may also let you link your Credit Card to an Online Payments app that functions like a Credit Card app. This way, you need not wait for OTPs. Instead, pay with a single swipe.
Features of Virtual Credit Cards
The various essential features of a Virtual Credit Card include:
- Available immediately
Issuers of Credit Cards offer Virtual Credit Cards online. Hence, you can access the card immediately using Mobile apps or Bank websites when you need it for transactions.
- Issued only to primary cardholders
A Virtual Credit Card is usually issued only to the primary cardholder. It is not offered to the add-on holder of a primary card.
- Unused amount transferred conveniently
You do not have to worry about losing the remaining amount if you are left with an unutilised credit limit on your Virtual Credit Card when the card expires. Instead, the remaining credit limit is conveniently transferred to your primary Credit Card.
- Provides increased security
When you opt for a Virtual Credit Card, you do not have to store or link your card-related data online. This could safeguard your sensitive information against data breaches.
Conclusion
Now that you know about a Virtual Credit Card, you can conveniently opt for one and enjoy its advantages.