More than 230 million people made online purchases last year.
If you are one of these 230 million people, I bet you have been shopping online for several reasons, but the most important one?
Convenience.
Well, convenience doesn’t always mean safety. This is why we have all used the same passwords for all of our accounts for years.
If you want to make your online shopping experience as easy and secure as possible, virtual credit cards may be the answer you’ve been looking for.
What are virtual credit cards?
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A Virtual Credit Card (VCC) is the online version of your debit or credit card. This is not a physical map, but a randomly generated unique 16-digit number. (with its own expiration date and security code) tied to your real card. These numbers are temporary, so you can use more than one.
The main reason for using VCC – which you may have guessed by now – is to hide your real credit card numbers. This helps protect you from data leakage, credit card fraud, and identity theft.
How do virtual credit cards work?
Your virtual credit card generates a new number (sometimes called a “token”) for every transaction you make. This number is not saved and cannot be used again.
In most cases, you create a virtual version of an existing credit card.which means no credit check or app required.
You can request as many virtual card numbers as you like (they are stored securely so you don’t need to memorize them).
Each service card has a slightly different system, but usually you get one of two types of VCC:
- Disposable VCC, or numbers that will expire after one transaction.
- Reusable VCC, or numbers that you can store and use more than once (this can be useful if you use them, for example, to pay for a subscription). Duplicate VCCs are just as safe as they are still not associated with your real credit card details.
Some card issuers allow you to select VCC expiration dates up to one year after the date of creation; others choose the expiration date for you. In addition, your card issuer may allow you to define maximum spending limits for each VCC.
Where can I get a virtual credit card?
Many major banks and credit card companies offer virtual credit cards as a free service. If you’re not sure if your card issuer offers virtual cards, just call them and ask. Below are some of the simplest VCC options:
- Capital one – Capital One’s virtual assistant, Eno, has a browser extension that you can download. An extension connected to your personal Capital One card will automatically generate your virtual card number when you shop online.
- Citi – With some Citi credit cards, you can register for the Citi VCC program. Just log into your account and you will be able to see if your card has a virtual account number option.
- Apple – Apple Card offers a virtual credit card number through the Apple Wallet app. This card number is different from your physical card number, making it more secure.
Benefits of virtual credit cards
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Additional security
If a hacker or identity thief obtains a VCC number, they will not be able to make purchases with it. or connect it to other identity-related data that you store online. Even if your VCC number ends up in the wrong hands, canceling a VCC is much easier than closing or canceling a debit from a real credit card.
As a bonus, VCCs make it harder for advertisers to track your buying habits.
Auto payments management
How many times have you forgot to cancel your subscription? (I look at all of you Planet Fitness members).
Using a virtual card to try out services that you know you may forget to cancel in the future is ideal. Since your VCC number will eventually expire, automatic payments will not be able to go through, effectively canceling your subscription for you.
I would not recommend this for those payments you know you want to make each month – your bills, your Netflix account, etc. You could be hooked on a declined payment if your VCC expires. and you didn’t forget to reset it.
Accounts are easy to close
If your data is indeed going to be compromised when using VCC, setting up a temporary number will make your life much easier. You can cancel VCC without trying to get a new credit card.
Cards work with multiple vendors
VCCs work on almost any online platform that allows you to pay with a real card.
Cards can be shared
If you have joint credit card account Together with a partner or family member, VCC can help organize who spends what. A VCC with built-in spending limits can also be a good safety tool for parents whose kids are old enough to make some purchases on their own.
More details: Are Joint Credit Card Accounts a Good Idea?
How do I shop with a virtual credit card?
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Shopping using VCC is a little more difficult than buying using regular numbers, but it is not very difficult.
Since they are not physical or scrollable, VCC can only be used for online purchases or phone transactions.… But they should be accepted wherever you can pay with your regular card online.
- When you’re ready to purchase, you log into the account configured for your VCC… Some credit card companies have browser extensions, apps or VCC sites for this purpose.
- Next, the account generates a unique card number and a security code that you will be charged with.
- If you have a recurring VCC, you can save this data to pay automatically next time on the same seller’s website.
- The fees will appear on your credit or debit card statement as normal transactions.as with the physical card.
Where I can not do you use virtual credit cards?
Personal Shops
Like many financial products, VCCs work best when they match your spending habits. Virtual cards are great if you’re a purely online shopper, but if you shop most of the time at brick-and-mortar stores, VCCs may not be as useful.
Personal welcome and return
If you shop online and pick it up later in person, sellers may want to verify your identity by looking at your physical credit card, which will of course not match your VCC number.
The same can happen if you personally return an online purchase. Depending on the merchant, you may need to pay the store credit instead of a cash refund.
Reservation
If you are booking a flight or hotel, renting a car, or buying tickets for events online, you will likely need to provide the actual card that was used for booking when you arrive in person. Card numbers will not match if you used VCC.
For events, you can get around this requirement by printing tickets or opening the online confirmation page on your phone. But it’s usually best to use your real card and be safe.
Summary
Shopping is becoming more digital by the minute, and virtual credit cards can dramatically improve the security of your online financial information. They don’t replace basic security measures like monitoring your credit card statement, but they are great for online transactions.
So, pair your virtual credit card with one of the most useful physical maps (and of course paying both in full each month) and your information will be a little safer.