Virtual Card: Features, benefits, how they work – Here’s all you need to know

financialexpress.com:

A recent survey by security.org found that globally 65% of the debit and credit card holders have had a fraudulent charge on their account at least once. The option for a virtual card provides users with an additional layer of protection. It improves the security of account holders especially while making online purchases by means of preventing sensitive details from falling into the hands of criminals. Many major credit card issuers provide virtual cards.

Let us discuss in detail what is a virtual card, how do they work, how to request one, among others.

Virtual cards are a digital version of your physical card. It is a unique card number that is generated in a digital format and is associated to your account. They generate a unique credit card number for you to use in place of your physical card number, preventing the merchant from storing your card information and keeping your financial data more secure. They are generally intended for one-time use. So, even if a company with whom you have done business with falls victim to a data breach and your card number is retrieved, your actual account would not be compromised.

Also Read: Credit Scoring System: How credit bureaus make money off your financial issues and haunt your future

Many virtual cards permit the users to set a time limit, after which they expire. This can be helpful if the user wants to use a card only for a specified period of time. Many also offer spending limits, which can help the users to stick to a budget. Most card providers make it easy to access the virtual card so that one can check out quickly, without searching for the card through their physical wallet. Of course, virtual cards come with certain associated limitations.

For instance, if the