What is Virtual Credit Card and how does it work?

What is a Virtual Credit Card (VCC)? How does the virtual credit card help the transaction without cash? With the demonetization of Rs 500 and Rs 1000 notes, we tend to be moving towards an economy with no cash. Cashless transactions are said to be increasing in India. An increase in cashless transactions means an increase in cybercrime and attempted hacking.

A virtual credit card can be a safe option without cash that will protect you greatly against hacking or fraud attempts. So what is the virtual credit card? What are its benefits? How will the virtual credit card work? During this post, I will give full details of the virtual credit card.

What is Virtual Credit Card and how does it work?

What is Virtual Credit Card and how does it work?

 

What is Virtual Credit Card (VCC)?

A virtual credit card is a replica of the actual credit card that the user will generate online at any time when he / she wants to perform transactions on specific websites. VCC could be a prepaid card that can be used only for online transactions. A virtual credit card will be used only once and will expire automatically after 24 hours if it is not used.

A virtual credit card is also known as a debit card because it does not give you any credit facility. VCC is the safest way to pay money online, even if the information on the card is compromised, the hacker can not use the card beyond the balance limit. In most cases, you want Internet banking along with physical credit card to generate VCC.

 

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Virtual Credit Card Features

It is a virtual card so you do not need to worry about theft or misuse.
It is a prepaid card where you can define your own limit.
A virtual credit card is a one-time use card and self-destructs after 24 hours.
This card can be used only for online purchases.
No additional service charge applicable to the use of virtual credit cards.

Why should you use the virtual credit card?

The three compelling reasons for using a virtual credit card are given below.

Security

The greatest benefit of using a virtual credit card is security and tranquility. You can simply avoid credit card fraud by using VCC. This card can only be used once. Once the VCC CVV number is used, it becomes invalid, thereby eliminating the possibility of misuse of credit card information. This card is self-destructive and expires automatically after 24 hours so that the period of use of this card is limited.

Flexibility

This card gives flexibility to the end user. It can be generated at any time using any amount that starts from Rs.10 to Rs.50, 000.

 

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Free

Virtual credit cards are free. In the Indian bank do not charge any money for the manufacture and use of virtual cards.

Virtual credit cards provided by Banks

 

Kotak Netc @ rd



You can generate Kotak Netc @ rd by following the procedure below.

Go to http://www.kotak.com/ and sign in to Net Banking using your Login ID (CRN) and your password. Click on the “netc @ rd” tab that will receive an OTP on the registered mobile phone number. Select the account from which you want to create funds to create netc @ rd and click OK to generate.

SBI Virtual Card

The process of generating the SBI virtual card is shown below.

Visit SBI Internet Banking https://www.onlinesbi.com/ and enter using the Internet banking user ID and password. Click on the “e-card” tab and select “State Bank Virtual Card Option”. Select Account Number and enter the limit of the virtual card. After verification, generate Virtual Card.

HDFC Bank Netsafe

The following is the generation of the HDFC Bank Netsafe virtual card.

Visit the Netsafe HDFC website. Accept the terms and conditions and enter your credit card number and expiration date. In the presentation of the details, the system will ask you to generate a virtual card with a credit limit.

Virtual credit cards provided by service providers

 

FreeCharge Go MasterCard

Freecharge Go MasterCard is provided by freecharge. It is a free virtual card. It is powered by the main board and the bank itself. You can use this card at any online merchant.

Entropay Virtual Visa Card

Entropay is not based in India. Entropay offers free virtual visa cards. Entropay is open to anyone and is usable internationally. However, this product is not used in India.

About you –

From the above discussion, it is clear that virtual credit card gives multiple benefits and is better in terms of security, however, this card has certain limitations. You can not use this card in a store or for the telephone purchase. This card can not be used for cash withdrawal.

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