Benefits of Using Virtual Cards
Enhanced Security
Virtual card numbers mask your real credit card information, reducing the risk of fraud or identity theft.
Convenience
Shop online without your physical card, and often use your virtual card immediately after account approval.
Control
Set spending limits, expiration dates, or even lock individual cards without affecting your main account.
How Do Virtual Credit Cards Work?
Virtual credit cards are temporary or alternate card numbers linked to your main credit card account. They let you shop online without revealing your actual card number. This added layer of security helps protect against fraud and unauthorized charges.
- Log in to your credit card provider’s app or website.
- Generate a virtual card number.
- Use that number at online checkout.
- Track the charge on your usual credit card statement.
Types of Virtual Credit Cards
General-Purpose Virtual Cards
Can be used across most online merchants and usually stay active until you cancel them manually.
Merchant-Specific Virtual Cards
Created for one store or service only, these cards offer extra privacy and control by restricting usage to a specific merchant.
Limitations of Virtual Cards
While ideal for online use, virtual cards may not work well in situations requiring physical verification, such as:
- Hotel check-ins
- Event will-call pickups
- In-store returns
Virtual Cards vs. Digital Wallets
| Feature | Virtual Cards | Digital Wallets |
|---|---|---|
| Main Use | Secure online payments | Online and in-store purchases |
| Technology | Temporary or masked card numbers | App storing multiple cards |
| Security | Protects actual card info | Uses device-level security |
| Flexibility | One-time or merchant-specific use | Multiple cards, contactless payment |
Frequently Asked Questions
Yes, most providers include them at no additional cost.
Yes, transactions are treated the same as regular credit card purchases.
Some expire after a period or a single use. Others can be customized with specific end dates.
Key Things to Think About
- Great for secure online shopping.
- Enhanced privacy and fraud protection.
- Easy to use, manage, and monitor.
- Earn rewards and benefits from your main credit card account.