Virtual Credit Card: Four big private banks, largest public sector banks and two NBFCs are offering these credit cards to their customers.
Virtual Credit Card: Most of us use debit and credit cards. But have you heard of virtual credit cards? As the name suggests, Virtual Credit Card is a new age credit card, which you cannot feel by touching in your hands and it is for one time use only. Virtual Credit Cards Most of the major credit card issuers offer their customers as an add-on card to their primary card. But like a normal credit or debit card, the virtual card has its own unique card number, expiry date and CVV number which is visible online. You can also set your own spending limit on the virtual credit card.
le for fraudsters to defraud this card, as there is end-to-end encrypted messaging between the bank and its customers. Everything is shared. Furthermore, these cards are generally one-time use, so the chances of it being used by fraudsters are very low.
The governing body of virtual credit cards in the country is the Reserve Bank of India (RBI). To get a virtual credit card, KYC documents have to be submitted and the issuer needs to approve them.
setting a limit
You can also set your virtual card limit and the payment will be authenticated every time by a One-Time Password (OTP) sent to your registered mobile number.
There is no physical form of virtual credit card. Its details can be saved on your mail and can be used to make transactions. In this way, the hassle of carrying the physical card anywhere is eliminated.
A virtual credit card is a short term credit card. Generally, these cards are valid for a maximum period of three days. Some virtual credit cards are also valid for one day only. Usually, these credit cards can be used for one transaction after which it becomes inactive. The amount is generally debited from the credit limit of one’s credit card or from the balance of the debit card, that is, the account balance.
Not many banks offer these virtual credit cards to their customers. State Bank of India is the only public sector bank to offer Virtual Credit Card. Private sector banks offering this include HDFC, Axis, ICICI and Kotak Mahindra Bank. Also, Oxygen Wallet Virtual Card and FreeCharge Go MasterCard are two virtual credit cards offered by non-banking financial companies.
how to apply
If you have decided to apply for a particular virtual credit card, contact the specific bank or NBFC that is offering the card and ask them to guide you through the application process. It usually takes three-four days to issue a virtual credit card. Most of the issuers do not charge their customers for issuance of virtual credit cards.