What is virtual credit card and should you get one?

What is virtual credit card and should you get one?

Online shopping became very popular these days. A virtual credit card is the best solution for your online purchases because it will help you make safe online transactions.

A virtual credit card is a card that you can use to buy things online. We only call it a credit card, but this is a prepaid card because you choose the money limit. This card is actually 16 randomly assigned numbers that usually expires after use. Your real credit card information is safe from fraud. There is no need to link real credit card details to the virtual credit card number.

Benefits of a free virtual card:

  • With this card, you won’t pay extra fees.
  • Your bank account details are secure.
  • You can choose the limit for the card.
  • If someone wants to steal the number, he can steal only money that you loaded onto the card. Check your card balance regularly.
  • Exchange rates are fixed for a prepaid virtual credit card.
  • It is accepted globally.

You can choose, for example, Neteller, Entropay, Payooner, Netspend, American Express, or Bank Freedom card for your next online purchase.

Things you should know about a prepaid virtual credit card:

  • You can usually get this card for free.
  • You can’t use a free virtual card for purchases in person.
  • Some companies will charge you a monthly fee or foreign transaction fees.
  • Some of the cards have an expiration date. Don’t forget to check it.
  • When you go travelling prepaid virtual card is not suitable for making booking and reservations. For that purpose you need a real credit card.
  • You can send money to your free virtual credit card from your debit card, credit card or bank account.

Do you know which free virtual credit card you should use? Here are some of them:

  • Capital one virtual credit card – a prepaid virtual credit card. Online shoppers can get a virtual number from Eno (smart assistant from Capital One). This number will be linked to your actual credit card, and it will function like a real card number. You can get several virtual cards for different online stores that you visit.
  • Citibank virtual credit card – a credit card that you can use for a single merchant. With Citibank, you will get temporary virtual card numbers. Your real account number will be protected.
    • You can get a Citibank virtual credit card on the Citibank website. Visit this site, and find out which City cards can give you virtual numbers because some of them don’t offer this feature.
  • PayPal virtual credit card. One of the payment options is PayPal credit that you can use for online purchases. Its lender is Comenity Capital Bank.
    • You should be aware of the fees: a late payment fee of £12, and a return payment fee of £12. You won’t pay any annual fee for a PayPal virtual credit card.
    • The great news is that PayPal offers you a special promotion – 0% interest rate for 4 months on single purchases that cost up to £150. After this period, the interest rate on online purchases is about 17.9%.

If you are addicted to online purchases, you should get a virtual credit card. Your money is safer with this card because you load money only as you need and when you need. You only risk limited amount of money. You should avoid exposing real credit card details online.

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