A recent RBI report revealed that from April 2009 to September 2019 over 1 lakh cases of payment card frauds have occurred, resulting in total loss of around Rs.615 crore. These fraudulent practices have become exceedingly commonplace in the past few years. Even though financial institutions cover the losses of such frauds in a handful of cases, the process of reimbursement is time-consuming and complicated.
In this regard, a virtual credit card can be a great alternative. These payment cards are like the traditional ones, but they are only available online. Similar to their physical counterpart, these credit cards have a card number, CVV, and an expiry date.
Security features of virtual credit cards
Credit card issuers provide virtual credit cards as an extension of a physical one. Here are some prominent features of such payment cards –
- Advanced protection
Perhaps the most brilliant feature of online payment cards is the step-up in security they offer. Since these cards are entirely online, they are not exposed to physical devices like skimmers. As a result, it is impossible to clone these payment cards. Hence, the chances of unauthorised transactions are also lower with virtual cards.
- Unique transaction codes
These credit cards generate a unique number for every transaction. One needs to enter this number to complete any transaction. After its usage, this exclusive transaction code becomes invalid. This process enhances its security and helps protect the credit cards from being hacked.
- Short life span
Unlike the physical credit cards, the virtual ones have a comparatively short life span. Typically, they have a lifecycle of 48 hours, which may change as per the norms of a particular issuer. Thus, these credit cards are not easy to hack.
Additional features of online credit cards
- Easy availability – Another important aspect of online credit card is their ease of availability. Customers can apply for a credit card online in 3 easy steps and avail them without much hassle. Additionally, users can cancel them any time they want.
- Credit limit – Similar to its physical equivalent, these payment cards also have a credit limit. Users can make transactions multiple times within this limit.
- Issued only to primary customers – A point to remember here is that virtual credit cards are only available to primary cardholders, and not to additional ones.
- Credit limit transfer – When an online credit card expires, the remaining credit limit of that particular one is transferred to the physical one. It offers more utility of funds and a convenient user experience for customers since the feature simplifies credit card settlement.
- Requires no charges – Availing an online credit card like this does not incur any additional charges. Credit card issuers provide them without any extra fee.
How to use a virtual credit card?
Using an online payment card is not a hassle at all. Here is a guide to help users complete a transaction –
- Provide the card number and other details, i.e. expiry date and CVV
- Verify the transaction with an OTP
- Conclude the transaction
Since credit card frauds are on the rise, payment card like these are an excellent alternative. Moreover, cards such as the Bajaj Finserv RBL Bank Super Card offer leading security features along with benefits like interest-free ATM withdrawal, loan against credit cards, etc.
Furthermore, the company also provides pre-approved offers to streamline the application process. It is available on financial products like credit cards, business loans, etc. Applicants can check their pre-approved offers by submitting their contact details.
Virtual credit cards have their limitations; like, they are not ideal for offline transactions, and they do not facilitate ATM withdrawal. Nevertheless, the benefits of these cards outweigh its limitations by a fair margin. However, despite what card an individual uses, it’s vital to know about the types of credit card frauds, and ways to avoid them to safeguard one’s financial interests.