What is a virtual credit card (VCC) or debit card?
A Virtual Credit Card (VCC) or Virtual Debit Card is a digital version of a traditional credit or debit card. Unlike physical cards, VCCs exist only in electronic form and are typically used for online transactions. Here are some key characteristics of virtual credit and debit cards:
1. Online Transactions: VCCs are primarily designed for use in online transactions. They are often issued by financial institutions or payment service providers to enable secure and convenient online shopping.
2. Temporary or Disposable: Some VCCs are temporary or disposable, meaning they have a limited validity period or are designed for one-time use. This adds an extra layer of security, especially when making purchases on unfamiliar websites.
3. Linked to a Physical Card or Account: In many cases, a VCC is linked to an existing physical credit or debit card or a bank account. Funds are deducted from the linked account when the virtual card is used.
4. Security Features: VCCs often come with security features like one-time passwords (OTPs) or two-factor authentication to enhance the security of online transactions.
5. Prepaid Nature: Some virtual cards are prepaid, meaning you need to load funds onto the card before using it. This can be a useful feature for budgeting or for individuals who want to control their spending.
6. Global Acceptance: Like physical credit and debit cards, virtual cards are generally accepted globally, allowing users to make online purchases from vendors around the world.
7. Privacy and Anonymity: VCCs can provide an additional layer of privacy for users who may not want to disclose their primary card information during online transactions.
It’s important to note that the availability and features of virtual credit and debit cards may vary depending on the financial institution or payment service provider issuing them. Users should be cautious and ensure they are using reputable and secure platforms when obtaining or using virtual cards.