Today, we can do most of our daily activities using the internet in fractions of a second and from the comfort of our own homes from shopping, eating, book trips, banking, etc. Earlier, we used to pay cash-only, but in the late 1990s, people started using debit cards, credit cards, and prepaid card, and now we have begun using electronic cards.
The phenomenon of cards makes buying easier as with just one swipe, and the money gets shifted from your account to another’s. Moreover, credit cards made it easier to buy things that we cannot afford at once with it buy now pay later concept, and today digital credit cards are creating a new wave in the financial sector.
The banks and other payment gateways secure online transactions at their end, so your transactions are secure. However, your sensitive information is exposed when you use your credit card or internet banking details for online transactions, leading to fraud. To combat such risks, most banks and Non-Banking Financial Companies (NBFCs) have launched Digital Credit cards to secure the customers’ information.
Digital credit cards, unlike traditional physical credit cards, are available only online. However, you can carry out online transactions using them. These cards are just an expanded version of your plastic cards that can use for online transactions. A digital credit card contains the same information as a physical credit card: a credit card number, CVV, expiration date, and validity date you can only view online.
You can apply online for a virtual credit card, set a credit limit online, use it for online transactions, and pay your bills online. Today, many established credit card companies offer digital credit cards (VCCs) to improve security throughout a customer’s credit card use. In most cases, however, these cards are only valid for a short time.
Features of Online Credit Card
- Since the card is available only for online transactions for a limited period, there is a reduced risk of loss due to theft.
- Virtual credit cards come with a default transaction limit, which you can customize online according to your needs.
- All the transactions are made secure with One-Time-Password (OTP) that you must provide when using the card; it offers additional security. When performing the transaction, you will receive the OTP on your registered mobile number and email.
- The digital credit card is only to the primary cardholder and not anyone else to safeguard customers’ details.
- You can get a digital credit card with zero joining fees and hidden charges.
- You can request the card instantly and block the card immediately if there is a threat.
Points to remember
- You must have a physical credit card to issue a credit card. If you are thinking of getting a virtual credit card, first obtain a physical credit card.
- As digital credit cards are for online payments, you cannot use them on physical stores and only qualifying stores.
- You cannot use a digital credit card for cash withdrawals.