Online shopping offers us the convenience to browse through hundreds of catalogs to find products that match our budget, color or size; compare prices and checkout and pay with ease; making shopping a breeze without the long queues at checkout. This same facet of convenience is also applicable now to grocery shopping, booking and payment of flight bookings and movie tickets.
Just stop and think for a moment now! Thousands of transactions happen every day over the internet across various digital marketplaces. Online shoppers input their personal information; credit card or debit card details including our full name, card number, CVV (Card Verification Value) number; sharing sensitive information online mindless to the possibility of data theft, forgery or identity theft. Although safety measures are in place, like One Time Passwords, there is a need for extra security from the card user’s end. To address such situations, banks in India came up with Virtual Credit Cards.
Firstly, what are Virtual Credit Cards (VCC)?
Virtual Credit Cards are a digital payment option offered free by banks to their credit card customers. It is a randomly generated number associated with your actual credit card. Each bank sets a maximum amount limit to the virtual credit card with each bank setting up the card expiry date as per their respective policy.
Just like a regular card, the VCC has a 16-digit number with an expiry date and CVV number. It can be topped up to any limit with the requisite amount credited from the card holder’s bank account. To an online merchant, it looks like any other credit card number. And yet, you do not share your actual credit card details online.
Secondly, Points to Note
- The minimum credit limit can vary between Rs.100 to Rs.50,000 per transaction per day.
- Each 16 digit code is for one time use only, and the entire balance can be used for a single transaction.
- If there is any balance pending, it gets credited back to the card holder’s bank account.
- The Virtual Credit Card is usually valid for 24 to 48 hours.
- As Virtual Credit Cards do not have a physical existence, they cannot be cloned making it highly secure for all transaction purposes.
Thirdly, what to do in case you don’t own a regular Credit Card?
For bank account holders who do not own a credit card, a good option would be to own an eWallet.
Set up against the customer’s savings bank account, the difference between a eWallet and Virtual Credit Card is that unlike the Virtual Credit Card, your spends on the eWallet are directly credited from the savings bank account.
Some examples of Virtual Credit Cards are:
- PayZapp by HDFC Bank
- DigiPurse by Union Bank
- PayApt by IDBI Bank
- M-Clip by Bank of Baroda
- Slonkit by DCB Bank
- Digibank by DBS Bank India
- Yes Pay by Yes Bank
- Zeta by RBL Bank