Virtual Credit Card: Discover the Benefits of Using It in Your Daily Life

Virtual credit cards are gaining more and more popularity in the digital world, especially in the United States, where online shopping security and convenience are crucial factors for consumers. 

Although it may still be a relatively new concept for some, virtual credit cards offer several advantages compared to traditional physical cards, particularly for those who shop frequently online. 

But what exactly is a virtual credit card, and how does it work? In this information-packed guide, we’ve gathered everything you need to know about its usage, benefits, and how to get one.

How does a virtual credit card work?

A virtual credit card is a temporary or exclusively digital version of your physical card, issued by your bank or financial institution. 

It has a unique number that can be used for online purchases without exposing the actual details of your physical card, such as the expiration date and security code. 

Typically, a virtual credit card has a different number, expiration date, and security code (CVV) that are specifically generated for each transaction or for a limited period. 

Even if the virtual card’s information is compromised during a transaction, your main account details remain protected. 

In this way, it’s as if you’ve created a digital “shield” that prevents hackers or malicious third parties from gaining direct access to your physical card information.

When is it advisable to use a virtual credit card?

Choosing to use a virtual credit card is highly recommended in several situations, especially when it comes to security. 

However, it goes beyond that, proving to be very useful in other day-to-day scenarios. Below, check out the types of purchases and service subscriptions that require an online credit card. 

If you regularly shop online, using a virtual credit card is a great way to protect your finances. This type of card can be ideal for:

• Shopping on new or less-known websites: When purchasing from online stores you’re not entirely confident in, the virtual card provides an extra layer of security. If something goes wrong, like a fraudulent site, your physical card details won’t be exposed.
• Service subscriptions: Streaming platforms, software subscriptions, or even product subscription clubs are some of the services where the virtual credit card is used. It allows for greater control, even if the subscription is temporary. If you no longer want to continue paying for the service, you can easily block or delete the card.
• International purchases: The use of virtual credit cards in international shopping is quite common. It offers protection against fraud, especially on foreign sites where privacy policies may differ from those in the United States.
• Promotions and one-time purchases: If you’re taking advantage of an online promotion or purchasing something you likely won’t buy again, the virtual card prevents your details from being saved on sites you don’t fully trust.

Benefits of using a virtual card

Now that we understand the ideal situations to use a virtual credit card, let’s examine its main benefits.

Increased security

The main reason consumers opt for virtual credit cards is security. It is designed to reduce the risk of fraud and identity theft since your real card information is not shared. How so? Let’s dive deeper! 

Even if someone obtains your virtual card details, they won’t be able to access your main account because the number is temporary or limited.

Day-to-day convenience

Another strong benefit is convenience. The virtual credit card is extremely easy to generate and use, usually through your bank’s app or the card issuer. 

In just a few seconds, you can create a new virtual card with a specific limit for an online purchase. 

In this sense, it can be used for subscriptions or recurring purchases, and many platforms allow users to control or cancel the card directly through the app.

Control over online purchases

The virtual credit card offers consumers greater control over their transactions, such as the ability to set spending limits, create specific cards for certain purchase categories, or limit the card’s validity. 

Therefore, having this control is especially useful for those who like to carefully manage their monthly expenses.

Main disadvantages of a virtual credit card

While the benefits of virtual credit cards are clear, it’s also important to consider some disadvantages that might arise when using them. Here are potential issues:

Cannot be used for in-person purchases 

One of the most obvious limitations of a virtual credit card is that it cannot be used in physical stores, as it’s strictly for online purchases. 

If you prefer making purchases in person, a virtual card won’t be of much help beyond the physical one.

Technical issues may occur

In some cases, using a virtual credit card can face technical problems, such as incompatibility with certain online payment systems. 

This can cause inconveniences if you’re trying to complete a purchase quickly. The virtual card might be rejected on platforms requiring more specific data validation.

Attention required for recurring purchases

If you use a virtual credit card for a monthly subscription or recurring online service, you need to be careful. 

Some virtual cards have very short expiration dates, which may disrupt your usage if the card expires before you can update it.

How to get a virtual card

Now that you know the benefits and possible limitations, how exactly can you get a virtual credit card in the United States?

Through the bank’s app

The most common way to get a virtual credit card is through your bank’s or card issuer’s app. Banks like Capital One, Citi, and Bank of America offer this service for free to their customers. 

The process is simple: you access the app, find the option to create a virtual card, and in just a few minutes, the number will be ready to use.

Specialized platforms and apps

There are also independent apps and platforms that offer virtual credit card services. A popular example is Privacy.com, which allows you to create unlimited virtual cards with advanced controls. 

These platforms are generally ideal for those seeking more customization and security options.

Through digital wallets

Some digital wallets, like PayPal, also offer the option to create a virtual credit card linked to your main account. 

Creating this card option adds another layer of security to your purchases and simplifies managing your expenses.

The virtual credit card is an excellent tool for those who want to increase security in online shopping, especially in the United States, where e-commerce is growing rapidly. 

With it, you can avoid major fraud, protect your personal data, and have more overall control over your expenses. 

However, it’s important to understand its limitations, such as the inability to use it for physical purchases and the necessary attention to prevent services and subscriptions from being interrupted. 

Stay alert! If you haven’t tried a virtual card yet, consider consulting your bank or a specialized platform to take advantage of all the benefits this technology offers. Also, check out our tips on the best ways to pay off credit card debt!