A virtual credit card: how does it work?

Secure payment, virtual payment card, virtual credit card “Safety first” is a well-known saying. This golden rule applies to all aspects of our daily lives, including the internet. If you consider that six in ten people are already shopping online, then you understand that online safety is crucial. Protection ensures that our data is secure, so you have less chance of fraud. This security also partly explains the rise of the virtual credit card, but how does this card work?


1. What is a virtual credit card?

virtual credit card?

With a virtual bank card you can pay securely online. As the name suggests, the transactions are completely virtual. The virtual credit card compliments your current payment card. An amount is transferred from your credit card to a temporary digital credit card.

The virtual credit card works exactly the same as a normal credit card and therefore shares the same characteristics:

  • There is a safety code (CVC)
  • Cardholder’s Name
  • Expiration date
  • Card number

In the case of a virtual credit card you obviously have no real front or back, since it is only a digital product.

The big difference with the traditional credit card is that you receive a credit card number, expiration date and a security code for every purchase with the virtual credit card. The system is simple. You receive the virtual data from your bank, or from an application or website that provides you with new card details with every visit.


2. What benefits can you enjoy?

credit cards

The virtual credit card number that you receive replaces the number of your physical card so that the seller does not see this. This makes the transaction protected against hackers, because the virtual card exists only temporarily and your real card is not part of the transaction.

The big disadvantage is that the virtual credit card is only valid for a specific transaction and amount. This means that you must enter the correct amount for the virtual credit card for each purchase.

If you use this system, you can shop online more securely. It becomes practically impossible to become a victim of fraud. Prevention is better than cure and it is therefore always good to be protected as well as possible. Use our comparison tool to find the best credit card with these and other benefits.