This is a disposable payment card that’s used for a one-time purchase on the internet. It is also referred to as a temporary or a throwaway credit card. The credit card issuer generates a single-use credit card number. These numbers are only to be used once in most cases. They however will expire after a month if not used. This is a system that has been implemented to curb online credit card fraud. Anyone can get the cards from a consumer’s current credit card issuer. Here is all you need to know about virtual credit cards.
How do they Work?
There is no difference between these cards and the regular cards, only that they can be used once. The accounts associated with the card are funded online. If a consumer intends to shop online, he/she will use the number of the virtual card just like he would do in normal circumstance.
All you need to understand is that these are regular pre-cards only that they don’t have line of credit available on them. Before a user is able to use the card, he will need to first open an account and fund the same. There are issuers who will just fund the card with a regular credit or debit card while others will require a number of methods.
Signing up for a Virtual Card
Since there are different providers of the virtual card, the application process may be different. However, there are the basic requirements that remain the same. Apart from just downloading the security software to the PC, there is an online cvv store available on the card website. A fee will be debited in order to get the card and the account verified. But this only happens once funds are received for the first time. There are monthly maintenance charges that apply.
Merchants who accept Virtual Cards
The good thing about virtual credit cards is that there are absolutely no restrictions when it comes to merchants who will accept the card. However, unlike regular cards, these cards can only be used online and cannot be carried around. This makes it hard for the merchant to tell whether the consumer wants to use a virtual card or regular credit/debit card. In fact, the merchant will not have any access to your data apart from the temporary credit card number generated for a single transaction. But users no longer have to worry about identity theft anymore.