Virtual Credit Card

In this article, we discuss about the Virtual Credit Card. Virtual credit card is an ordinary credit card which has the same features as actual credit card.

However, it does not exist within a physical form. It is a one time use credit card, which means, you can use this card for only one purpose within a limited time period. In online transactions, buyers don’t have to worry about their actual credit card because virtual credit card is made only for one time payment. After using this credit card, your credit card will expire immediately.

We can use this credit card only for online purpose. Virtual credit card is not plastic, therefore, the holders are required to give details of their virtual credit cards such as Name, CVV (Card Verification Value code) number, Expiry date and CC (Credit Card) number. When a holder applies for virtual credit card, the bank gives these important details for their online transactions.

On the other hand, virtual credit card service is not available in all banks of India. Only few major banks of India provide these Virtual Credit Cardfacilities to their customers, such as Axis bank, ICICI Bank, SBI, HDFC bank, Kotak Mahindra bank and others.

Well, after knowing about their meaning, we discuss about their merits and demerits for getting an answer to my question that how much it has proved to be successful among credit card holders. Therefore, here are the following advantages of virtual credit card:

1. First advantage of virtual credit card is their validity. It implies that, virtual credit card has only one time validity, which is used for only one purpose. Once holder gives their online payment and their payment is successful then, thereafter, credit card number gets expired.

2. Virtual credit card helps the holder to stay in their financial budget but the question is HOW? When a holder want to carry this card then he can set a credit limit for themselves and when they set their credit limit, their merchant cannot charge more than that specified amount for his online transaction. Therefore, virtual credit card helps in controlling their finances.

3. Virtual credit card provides the facility of using their card in any place/time all over the world. Therefore, if any merchant does not accept their virtual credit card then holders do not worry because they have a lots of choices of merchants.

4.  One of the major advantages of virtual credit card are that holders don’t need to worry about their security. This means that in an actual credit card, the possibility of getting stolen or lost always exists. However, on the other hand, in case of virtual credit cards, there is no such possibility  as they work on online payment system.

Well, after discussing about VCC (virtual credit card) advantages, here are their disadvantages:

1. First of all, VCC has a limited time period. It means, VCC is normally used for only 24 hours, which is too short for a huge transactions.

2. Second and last disadvantage is that, virtual credit card is not accepted by all merchants of India. They accept only actual / physical credit card instead of Virtual credit card.

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