Virtual Credit Card
Definition - What does Virtual Credit Card mean?
Typically, virtual credit card numbers can be used only once, and may expire within a month if not used. This helps protect the customer from becoming a victim of online credit card fraud.
Techopedia explains Virtual Credit Card
A few crucial factors on virtual credit cards that makes them useful and safe, if used properly:
- Customers are allowed a minimum and maximum credit limit per transaction each day.
- Virtual credit cards are valid for only a specific time period, specified by the card issuer.
- Customers can usually perform only one transaction using one virtual card where they are able to use all the credited balance or a portion of it.
- If there is any balance amount remaining on the virtual credit card, the amount is credited back to the original account of the customer.
- Virtual credit cards are issued only to the primary card holder, not to any secondary card holders.
- If there is a transaction where the customer has to show the original credit card in which the payment was done, virtual cards are unusable.
- Given that virtual credit cards are non-physical, it is almost impossible to clone them, which makes it highly safe for all online transactions.