What You Need To Know About Virtual Credit Cards (2024)

FAQs

What You Need To Know About Virtual Credit Cards? ›

Virtual credit cards are digital credit cards that function like physical credit cards—but without the plastic. Rather than providing the same card number to multiple vendors, companies can limit their exposure to potential fraud by generating different 16-digit card numbers and expiration dates for each transaction.

A virtual credit card helps protect you against fraud, since the information generated by the card issuer usually expires after one transaction. And even when that's not the case, you can easily change, lock or delete your virtual credit card anytime you want without it affecting your ability to use your account.

Virtual credit cards aren't entirely fraud-proof. It is still important that users remain vigilant with their credit accounts, checking their statements regularly for any unauthorized transactions. Virtual credit cards are also designed specifically for online and card-not-present transactions.

The Cons of Using Virtual Credit Cards

One of the main drawbacks of virtual credit cards is that they are less widely accepted than traditional credit cards. This can be frustrating if you are trying to make a purchase and must switch between your virtual credit card and a traditional one.

Virtual credit cards can't prevent fraud from happening, but someone does try to steal your information, they provide peace of mind in two important ways: the virtual card cannot be traced back to your original credit card number and you have the ability to cancel the virtual card immediately without closing your ...

Are there spending limits on virtual cards? In general, you can spend up to your full Spend Power with virtual cards. However, for new accounts, virtual cards have a max spending limit of $100 which gets removed once the physical card arrives and is activated.

Buying from a website you've not used before, or making a payment over the phone? Use a virtual card - the details are only linked to the money in your Space, and not your main balance. Just in case. You can also delete or lock your virtual card once it's been used - even more reassurance your money is safe.

Virtual credit cards are completely legal and available for mainstream use. In addition to virtual credit card numbers issued by the major card companies, there are also VCC generators. This option is legal to be used for card verification purposes that do not involve financial transactions, such as free trials.

Because debit cards withdraw money from your checking account, a criminal who gets your account information or PIN could empty your account. For this reason, credit cards are considered safer to use online because funds aren't directly taken out of your accounts.

A virtual credit card works with your card account, and account numbers are randomly generated so that your actual card information is kept private when you engage in online or phone transactions. Virtual cards can help protect against fraud and prevent tracking by advertisers.

How many times can a virtual card be used? ›

It's meant to be used one-time only - at a merchant of your choice - either online or in-store (most merchants who accept Visa cards will accept an Affirm Visa virtual card as a form of payment).

Some virtual card providers charge fees for every card you create or a monthly fee to use their service. Other virtual card providers may also charge fees for each purchase made with the cards. In contrast, Privacy's Personal plan is completely free to use on all domestic* purchases.

A virtual card is usually prepaid, like a gift card, with a specific sum of money loaded onto it in advance. These cards only exist online, but carry the same information as a physical bank card: card number, expiration date, and CVV code.

Virtual cards are linked to an existing credit card account. The card numbers are generated randomly to ensure your bank account details aren't shared online. These numbers would appear as any other credit card number for a merchant.

As such, refunding a VCN transaction must be done through the card processor used to register it as well. When Processing refunds on VCN loan, please note that: Refunds are issued back to the original method of payment as they would to any other credit card.

A virtual credit card exists only in digital format, without a physical presence. This makes it more secure in some ways, since it can't be stolen from your wallet. Another difference is that with a virtual credit card, your financial data isn't disclosed to the merchant.

Virtual card numbers and online security

Not only are they convenient, but virtual cards are one way you can help protect yourself from credit card fraud. And they also can help limit how much information is accessible to fraudsters if your information is compromised in a phishing scam or a data breach.

Beware the latest trend that many payers are adopting, a kind of virtual credit card that actually incurs a fee to the practice of between 1% and 5%.