Hyderabad, May 21, 2013 -Are you scared of using your credit card online on some website because you feel there might be fraud or a security threat? If that’s the case, then welcome to the world of Virtual credit cards, which I will explain in today’s article and also how it can be useful for you.
A virtual credit card (VCC) is a disposable credir card or a soft copy or plastic credir card with which can make online purchases(payment) most time just once because its expiration period is one or two months maximum. Virtual Credit Card is a one-time usable card which comes with a preloaded amount that is valid only for a specified time period. Virtual Credit Cards can’t felt or touched as their number, expiry date and CVV are only visible online.
The key details of the virtual credit cards like the card number, expiry date, CVV number etc. are used when using the card online, but the user's primary card details are never shared with the merchant online. So, while using the virtual credit card online, users need not worry about losing their card or carrying their card safely in their wallet.
There are many banks which offers virtual cards instantly these days. Some of the major banks are:
HDFC Bank - HDFC NetSafe
Kotak Mahindra Bank- Kotak netc@rd
State Bank of India- SBI Virtual Card
Axis Bank - Axis e-wallet card
Why Virtual Credit Cards ?
Virtual Credit Cards have one great adavantage and that is it ensures the money is secured because identity and the original details of our Original Credit Card are not revealed online thus protecting the buyer from hackers and or / fraudulent individuals and coupled with the fact that Virtual Credit Cards are only valid for one or two month, there is gurantee of a safe and secure online shopping experience.
VCC help protect the user from identity theft, because the card cannot be used to provide proof of the thief's false identity. Virtual cards do not carry any of the owner's personal information, and only carry the temporary number provided by the company.
Another benefit of a virtual credit card is its convenience. These cards allow the user to make online purchases without having to search for his physical credit card information first. All that the user needs to remember is the virtual card number itself.
Virtual credit cards do come with certain disadvantages, however. They are usually limited to use on the Internet and cannot be used for offline transactions. Furthermore, their online use is restricted to certain types of purchases, as some merchants require real credit cards and personal information.
The short expiry time for virtual cards, while providing security for the user, can also be an inconvenience. Failure to use the card before its expiry date means having to get a new one. The credit card user may specifically request a different duration for his virtual credit card, as well as the ability to reuse a virtual card number for a certainmerchant for the sake of convenience. Doing so may, however, raise the risks associated with using credit cards online. The processing time for virtual credit cards tends to be longer than that of physical credit cards as well.
Once you complete the transaction or if the card is cancelled. In case card is not used for 48 hours after creation, whichever is earlier.
How is Virtual Card safer?
How is Virtual Card safer?
The customer details (your bank account No., mobile No. , email address, etc) are not shared with Merchant / Vendor. The Card is a single usage card, i.e once used successfully it cannot be reused. The available window for Card usage is limited to a maximum period of 48 hrs. Card is created using secure Internet Banking website and Card limit is decided at the time of creation. Both Card creation and usage during online transaction are authorised only after successful validation of OTP, making it more secure. Refund/Cancellation.
Refund/Cancellation ?
In case of SBI card, once card is cancelled or expired, the lien marked shall be lifted and the unspent / unutilised amount will automatically be available to the customer for use. Validity Once you complete the transaction or if the card is cancelled. In case card is not used for 48 hours after creation, whichever is earlier.
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