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What is a Virtual Credit Card, and What are its Advantages?

With almost every sector and business going digital, virtual cards have become the next go-to thing. While you can bring a credit card, a virtual credit card is available online. It doesn’t have a physical form. These virtual credit cards are more popular among financial service companies looking to gain industrial competitiveness. However, these cards can even benefit unrelated businesses.

Virtual credit cards have helped revolutionize how businesses make payments, saving excessive transaction fees. A virtual credit card contains a 16-digit number for single use between you and the bank.

If you are looking to apply for a virtual credit card, read further to know more.

The Advantages of a Virtual Credit Card

In layman’s language, credit cards that are virtually present and function online are known as virtual credit cards. They are an electronic version of your credit card and has various advantages such as:

●      Free of Cost

Most credit card issuers these days offer virtual cards without any extra cost. Therefore, you are not required to pay any additional fee to avail these virtual credit cards. The operating costs for the virtual banks get cut down since everything is run online, so you, as a customer, will be charged less.

●      Convenient

These electronic cards are hands-down more convenient than physical cards. How so? They enable quick and hassle-free payments without you physically searching for your cards. Shopping and other payment aspects become simple.

●      Control Your Spending

You can choose your spending limit with a virtual credit card, which will help you save money and control your spending. You can even choose to set the last payment date, beyond which you won’t be able to make any payments using the card.

●      The Remaining Balance is Easily Transferred.

If the credit limit on your card goes unused, it can be transferred to the primary card.

●      Improved security and Fraud Protection

With virtual credit cards, you can make payments and protect your PII, personally identifiable information, by not showing the amount shared while making a purchase. With virtual cards, it becomes almost impossible to infiltrate your account, as many cards require your face scan or PINs to gain access to your account.

●      Multi-Channel

Another great benefit of a virtual credit card is that it can be accessed on various devices or multiple channels, such as mobile phone apps, browsers, websites, etc. You don’t need to worry if the physical card gets misplaced.

●      Better Offers

There are some virtual credit cards that offer rewards and better deals than physical cards.

●      Managing Subscriptions

All your online subscriptions can be managed easily through virtual credit cards. Whenever a merchant overcharges you, you can easily cancel the card, and the payment information will be deleted without you having to do it.

●      Track Cash Flow

With virtual credit cards, you can keep track of all funds available in your account. It helps to make sure that there is better transparency when it comes to the payment process.


A virtual credit card has many advantages; it is a valuable and efficient way of making online transactions. Therefore, you must have at least one virtual credit card. However, before choosing a virtual credit card, it is important to research well and go through all the options available. Hence, choosing it should be done carefully.

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