Virtual Credit Card: Its Significance And Banks Offering These Digital Cards

A Virtual credit card works in a similar fashion to the physical form. It has its own card number, CVV, and expiry date. However, it does not come in a physical form. It only exists online and is typically accessed through a smartphone or bank app. These cards are safeguarded by a passcode or biometric login, making them harder to misuse. Most importantly, the card details are generated uniquely for each transaction or for a limited time, which helps reduce the chances of fraud. If any suspicious activity occurs, the card can be instantly blocked without affecting the main credit card account.

They are usually suitable for one-time purchases and recurring payments alike. These digital cards can be generated through banking apps or websites and used just like a regular credit card for online purchases.

Significance of Virtual Credit Cards

Virtual credit cards are particularly useful for businesses and institutions. Companies can issue single-use or multi-use VCCs to manage vendor payments, travel expenses, employee reimbursements, or subscriptions without sharing actual credit card details. They are quite popular among sectors like healthcare, entertainment, and travel, where they help maintain secure and seamless transactions.

VCCs are usually issued at a relatively quicker timeline, their validity is temporary, and they can be easily blocked online. 

Here are some banks that offer virtual credit cards:

HDFC Bank

HDFC Bank offers the NetSafe Virtual Card, which generates a unique, single-use card number linked to an existing debit or credit card. It's valid for 24 to 48 hours and ideal for secure online transactions where users don’t want to expose their actual card details. 

ICICI Bank

With the iMobile Pay app, ICICI Bank offers a virtual credit card. The app allows users to manage their cards instantly, including regenerating or blocking them, as well as shopping online securely.

Kotak Mahindra Bank

With the Netc@rd, Kotak Mahindra Bank offers a free virtual debit card that is linked to a customer's debit card. With this card, users can generate it through internet banking, use it for online purchases, and delete it immediately afterward, ensuring a high level of control and security. 

Axis Bank

Axis Bank provides an E-Card, a virtual version of its credit card that is typically issued at the time of account opening. It allows new cardholders to make online transactions before their physical card arrives.

State Bank of India

While State Bank of India (SBI) previously offered a virtual card service linked to debit and credit cards, it is currently unavailable, though it may return in the future.

Yes Bank 

Yes Bank also provides a virtual card tied to users’ savings or current accounts. Managed via mobile or net banking, it is designed for secure online payments and protected with OTP-based authentication.