Virtual credit card: From benefits to uses; all you need to know | Mint

In our rapidly evolving financial landscape, virtual credit cards have emerged as a convenient and secure payment option. They aim to simplify credit transactions while reducing the risks of theft and loss compared to traditional physical credit cards.

What is a virtual credit card?

A virtual credit card is the digital form of a physical credit card. It contains all the essential details of a physical card, including a 16-digit card number, CVV, and expiry date. Typically, a virtual credit card is a short-term card that serves as an add-on to your existing credit card, allowing for a limited number of transactions.

How does it work?

Functioning similarly to a physical credit card, a virtual credit card offers enhanced security features. When you make a payment using a virtual card, a one-time password (OTP) is generated, which remains valid for only a few minutes. This ensures that the same password cannot be reused for future transactions, significantly reducing the risk of fraud.

How to use a virtual credit card

Using a virtual credit card is straightforward and does not require swiping a physical card. Follow these steps to make a payment:

Conclusion

Virtual credit cards represent a significant advancement over physical credit cards, offering enhanced security and convenience. They minimize the risks of fraud while streamlining online transactions, making them an appealing option for modern consumers.