Have you ever felt the shivers when entering your credit card information when shopping at a new online website?
We have all been there. But the good news is that you don’t have to worry anymore. As the name suggests, a virtual credit card in India (VCC) is a novel single-use credit card having no physical presence. Since it has no physical form, the card is only used for online transactions. With the advancement of technology, people are switching from offline to online shopping.
Similarly, credit card issuers have started offering virtual credit cards equal to real credit cards. Therefore, you can start using your virtual credit card in India immediately, even before you receive your physical card and password.
Eventually, banks offer virtual credit cards in India to customers as add-on credit cards to their main cards. Like a physical credit card, a virtual credit card in India has its unique card number, expiry date, and CVV number displayed online. Additionally, you can also set your spending limits for your virtual credit card. However, these cards usually have a short expiration date.
In this article, we will present you with a list of virtual credit cards in India, how they work, their pros and cons, and banks that offer virtual credit cards.
What is Virtual Credit Card in India?
A Virtual Credit Card in India is the electronic equal of a physical credit card. It is available in digital form rather than physical form. However, all details, such as card number, CVV, and expiration date, are most often available online at the credit card issuer’s website.
Virtual credit cards in India are not only easy to use but also offer security to users. As Virtual credit cards do not exist in a physical form, they prevent your credit card information from all online thefts. However, VCC is a short-term credit card that allows a limited number of transactions. Credit card issuer offers a virtual credit card in India as an add-on to your primary credit card.
How does Virtual Credit Card Work?
Most online retailers, from Amazon to eBay, store customer payment information. It’s convenient for everyone because you don’t have to enter your details every time. At the same time, however, if your data is not encrypted, hackers can access it, putting you at risk of identity theft and fraud. A virtual credit card in India keeps a physical credit card’s information safe when the cardholder shops online.
VCC creates a temporary card number to replace the 16-digit number printed on a plastic card. Moreover, from a technical point of view, the companies generate these numbers using a computer algorithm. The technology is very like how the latest EMV chip card works when buying with the card.
Unlike regular credit cards, virtual credit cards in India use an app to generate a unique credit card number (known as a token) for each transaction. When we shop online, we send these tokens to merchants and banks to confirm transactions. You can not use these tokens multiple times for transactions, minimizing the possibility of theft or fraud.
After the generation of a number, you can use them for online purchases like a regular credit card. Instead of entering the actual credit card number into the payment field when shopping online, the customer mimics innovative EMV technology on their card using random numbers. The only difference is that most virtual credit cards in India have restrictions on when and where to use them to prevent data thieves from using them.
Read more: 10 Best Cashback Credit Cards in India
10 Best Virtual Credit Cards in India
You can redeem Virtual Credit Card in India in two ways. If a customer has a credit card issued by one of the banks that offer this feature, they can do so from their bank or by linking their existing card from another bank to their online card. Below is a list of the best virtual credit cards in India.
|Bank Name||Card Name||Key Features|
|HDFC Bank||HDFC NetSafe||You can set a credit limit for the NetSafe cards
NetSafe card is a one-time use card
|SBI||SBI Corporate Virtual Credit Card||Accelerate payments to the supplier’s
Configurable controls for each transaction
|Kotak Mahindra Bank||Netc@rd||No fees for the creation or use
Automatically expires after 24-48 hours
|ICICI Bank||ICICI Bank Virtual Credit Card||1 reward point for every Rs. 200 spent
Comes initial credit limit
|Axis Bank||FreeCharge Plus Credit Card||Vouchers worth Rs. 700 on the activation
Cashback on every transaction
|HSBC||HSBC Advantage Virtual Card||You can use it for online shopping
You can set the card’s limit based on your purchase
|ICICI Bank||Pockets by ICICI||Electronic wallets allow you to send money to bank accounts and mobile numbers.|
|Union Bank||Union Bank Digipurse Wallet||Bank of the Union DigiPurse is a “facility” for customers to pay bills, top up, shop, and even send money using the DigiPurse application.|
|Oxigen Wallet||Oxigen Virtual Prepaid Visa Card||Enables customers without debit or credit cards to conduct secure transactions on any e-commerce site.|
|Axis Bank||Axis PAYGO||PAYGO is an Indian company providing payment solutions for businesses, educational institutions, and gated communities.|
As you know now, there are many options to choose from. Below are the best 10 virtual credit cards in India available in the market. You can opt for these options and avail yourself of the benefits of these virtual credit cards in India.
1. HDFC Bank NetSafe Virtual Credit Card
HDFC Bank offers its customers a free instant virtual credit card India solution called Netsafe. You can enable this virtual payment service for online shopping transactions made with credit cards.
- NetSafe is hassle-free to generate
- NetSafe protects your actual credit card information. Hence, it’s safer.
- NetSafe monthly statement reflects on your original credit card statement
HDFC credit card Process payments with CRED to receive exclusive rewards and cashback.
2. Axis Bank FreeCharge Plus Credit Card
Axis Bank offers its users a free instant virtual credit card India called FreeCharge Plus Credit Card in India. You can generate an eShop credit card by registering your credit card details on the Axis Bank official website.
- Eshop card is Visa based, no Mastercard option is available
- The validity period is 48 hours
- Monthly charges will reflect on the original credit card statement
Axis Bank FreeCharge Plus Credit Card payments with CRED to earn exclusive rewards and cashback.
3. ICICI Bank Virtual Credit Card
ICICI Bank issues an instant virtual credit card in India as an add-on card to the cardholder’s main card. Therefore, the user sets the credit card limit of the virtual ICICI card according to the limit of the main card.
- Zero-cost card, Hence, the bank does not charge any amount on the issuance of the card
- Card like they do for other credit cards, Therefore, a virtual ICICI Card is an international Visa card that you can use for all kinds of international transactions
You can get exclusive rewards and cashback when you make ICICI credit card payments with CRED.
4. SBI Corporate Virtual Credit Card
SBI also provides customers with a virtual credit card in India. You can generate these on its official website.
- The maximum usage limit is ₹5,00,000.
- Not compatible with international transactions.
- Only SBI corporate credit card users can make free international transactions with Visa-based credit cards.
You can receive exclusive rewards and cashback when you make SBI credit card payments with CRED.
5. Kotak Mahindra Bank Netc@rd
Technically, Kotak Netc@rd is not a virtual credit card in India but works like a virtual credit card. Additionally, it allows you to generate unique card numbers for domestic and international transactions.
- All features are the same as a Virtual Credit Card
- Instant virtual credit card India is Visa based, with no Mastercard option
- You can also use Kotak Netc@rd for Netflix subscriptions
Kotak credit with CRED Creates a card payment. Receive exclusive offers and cashback.
6. Axis Bank PAYGO
Axis PAYGO allows customers to make cashless transactions using their Axis PayGO wallet at any merchant terminal. Simultaneously, Customers can check their cash balances via the Axis mobile app or SMS.
- You can make uninterrupted cashless transactions on the go.
- PAYGO Wallet allows you to pay the amount you need to withdraw. You can enter the amount before trading. You can conveniently pay from your wallet by simply topping up the amount.
7. HSBC Advantage Virtual Credit Card
HSBC has introduced a virtual credit card in India called the HSBC Advantage Virtual Card. Cards do not exist in physical form, and you can use them for online purchases. With this card, you can set your preferred card restrictions and shop safely online. Hence, instant virtual credit cards in India are a secure payment method for goods and services. The card has a limited lifespan and can be topped up only once for a fixed amount.
- You enjoy more control with improved visibility over your purchases.
- Cards are easier to use and more convenient.
- You can use a credit card to facilitate online transactions.
- You can limit your cards based on what you want to buy.
- You also have the option to reset limits.
8. ICICI Bank Pockets Virtual Credit Card
Pocket is a mobile app launched by ICICI Bank that allows users to send money to any email id, phone number, Facebook user, or bank account. Moreover, The app uses a customer’s girlfriend’s Facebook credentials to log in, making banking fun and social.
- It is a VISA-based e-wallet that customers of any bank can use to top up mobile phones, transfer money, shop anywhere, pay bills, and more.
- Pockets Wallet also comes with a physical shopping card that you can use for website and retail purchases.
9. Union Bank Digipurse Wallet
Union Bank of India Credit Card offers benefits that suit your taste and lifestyle and is accepted worldwide. The virtual credit card in India is EMV chip and PIN enabled with highly secure embedded chip technology carefully designed for added security. IC card processes data with unparalleled safety in a high-security environment, protecting you from forgery and skimming and giving you peace of mind and freedom to use.
- You will get an Instant virtual credit card in India against a proven minimum income of Rs 1.80 lacs.
- Credit card authorizations and card limits are at the bank’s discretion.
- You will get a cash advance facility at 20% to 40% as per the card variant on the Card Limit, subject to ATM daily cash withdrawal.
10. Oxigen Wallet Virtual Prepaid Visa Card
Oxigen prepaid cards can be instantly activated and managed via the dashboard and app. This debit card is 100% accepted by Indian merchants both online and offline. Also, You can also add money to the “General” category to withdraw cash from ATMs.
- You get easy integration with existing HRIS and ERP systems.
- On-the-fly card issuance and activation with a simple KYC method.
- You can manage and schedule payments independently of banks.
Benefits of Virtual Credit Cards in India
One of the main advantages of instant virtual credit card India is that you can close your VCC account without closing your main credit card account. It will protect you from any theft of your personal information. If you’re using a regular credit card and there’s a data breach, you’ll need to reissue your card. It can be a problem with recurring supplier payments.
Even if you close your virtual card, it reduces the risk of exposing your original credit card. Additionally, it saves you the hassle of tracking and updating recurring payments that weren’t affected by a data breach.
Unlike physical credit cards, virtual credit cards in India have many advantages. Here are some key features and virtual credit cards in India:
1. Increased security
A virtual credit card in India offers much more security than physical credit cards. Most virtual credit cards in India have a one-time use option and are valid for a specific period. You can use these cards online, which minimizes the chances of theft or fraud. The added benefit of restricted use makes it more secure.
You can use your existing internet banking-enabled account to pay with a virtual credit card in India. This card is, Indeed, much more flexible than a physical credit card, as you can create them for any amount. You can use them at any online merchant site that accepts credit cards.
A virtual credit card in India has no physical format and all essential details such as CVV, card number, and expiration date. These are available online and easily accessible from your mobile phone. It saves you the hassle of carrying a physical card.
4. Easy cancellation
A virtual credit card in India offers users easy cancellation options. If you want to cancel the card, you can do so from your smartphone.
No need to swipe your virtual card to pay, making it almost impossible for criminals to use your card to cheat. Also, virtual credit cards in India come under the Reserve Bank of India (RBI). To obtain a virtual credit card in India, you must submit KYC documents, and the issuer must approve them.
6. Instant access
You can issue a virtual credit card in India online. It allows you to get instant access and carry out transactions.
7. Instant blocking of cards
You can anytime block the virtual credit card if there is any suspicious activity noted.
8. Domestic and Global transactions
The virtual credit card in India allows you to perform domestic and Global purchases.
9. Transfer the remaining credit limit to the primary card
When your instant virtual credit card in India expires, It enables you to transfer your remaining fund to your primary card.
10. A free virtual credit card in India
There is no fee to issue a virtual credit card in India.
What are the Limitations of Virtual Credit Cards in India?
Returning products ordered online is one of the biggest challenges for a virtual credit card in India. You may need to tap or swipe your card to allow your redemption request, which is not always possible with instant virtual credit card India. It may require you to receive a gift card instead of receiving cashback for your transaction.
Undoubtedly, virtual credit cards in India offer many perks, but they also have some limitations. Some restrictions are
- You can use virtual credit cards in India at merchant swipe machines as they are purely digital.
- It is difficult to return an item ordered online to a physical location.
- Short expiry dates can cause problems with subscriptions.
- You cannot withdraw cash with a virtual credit card in India.
Read more: How to Create A Virtual Credit Card
How should I use a Virtual Credit Card in India?
Shopping with an instant virtual credit card in India is trickier than using a regular credit card. Additionally, It protects you against identity theft and fraud but is worth the extra effort.
Here are some ways to make VCC more useful:
- VCC allows you to open a virtual credit card website and conduct virtual credit card transactions. Banks that support virtual credit cards in India have built-in browser extensions.
- You can generate a one-time token by logging in with your username and password. It contains a unique credit card number and security code.
Your service provider may provide the option to set an expiration date for your instant virtual credit card in India.
- You can also set a spending limit. It is helpful if you share your card with others.
- You can make online transactions using your virtual credit card India details.
● The transaction appears on your “regular” credit card statement.
Virtual Credit Cards in India – FAQs
Q1. Are virtual credit cards in India more secure than physical cards?
Ans. Virtual credit card India enable secure online transactions by reducing the risk of the underlying card details being disclosed to merchants.
Q2. What is the Virtual Credit Card limit?
Ans. The initial credit limit for the virtual credit card in India is Re. 1. However, you can change the VCC maximum limit within the primary card limit.
Q3. Can a separate virtual credit card in India be issued for additional cardholders?
Ans. No, a virtual credit card in India can only be issued to the primary cardholder.
Q4. Is it safer than the credit card in your wallet?
Ans. You can view your important VCC details, such as card number, expiration date, etc. You can use these details to facilitate all your online transactions and never have to worry about losing your card or keeping it safely in your wallet.
Q5. Can Virtual Credit Cards be used for international transactions?
Ans. A virtual credit card in India for international transactions depends on the card issuer. So please contact your card issuer and inquire about it.
Q6. Do I have to pay any amount to apply for a Virtual Credit Card in India?
Ans. Generally, most virtual credit card India issuers do not charge their customers for issuing Virtual Credit Cards. However, contact your card issuer and inquire about it.