What is Virtual Card and Why is it used?

Cards like Credit cards, Debit cards, and ATM cards have a serious impact on the way we purchase things now. They somehow incremented the cashless economy in a certain way.

But have you ever wondered What does a virtual card mean? or why is it used?. Well, here in this article we have provided you with everything you need to know about the Virtual card.

What is a Virtual Card?

Definition – A Virtual card is basically an online card that is not physically issued by the card provider. It’s usually a free service provided by the original card issuer to their customers, who want to perform an online payment with the help of their cards.

Explanation – The Virtual card is the invisible version of debit/credit cards. Unlike plastic cards, it doesn’t require any Physical Representation. It usually has this one-time use card number created by the respective card provider.

How does it work?

The card issuers generally provide a software to be set up on the customer’s laptop or computer.

This software helps the customer to generate a temporary card number, linked with their permanent one. Then the customers can obviously use this temporarily generated number to make online purchases.

Benefits of Using Virtual Card

  • Secure – This temporary number cannot be traced back to get card details and hence make this virtual card more secure than the physical ones.
  • Fast – It has been observed that the use of virtual cards is much faster as compared with others.
  • Reliable – Due to its online processing the customer is free from the worry of its damage and lost.

Major Disadvantages of Using Virtual Card

  • Everyday Limit – Customers are allotted with a minimum and maximum limit per transaction each day.
  • Valid for Specific time – Virtual credit cards are valid for only a specific time period, specified by the card issuer only.
  • Only one transaction at a time – Customers can usually perform only one transaction using one virtual card.
  • Issued to primary cardholder only – The Virtual card is issued to the primary cardholder only and not to the secondary cardholders.


So this was all regarding What is a Virtual card and why is it used?. If you find it useful then do let us know in the comment section below.

Stay tuned for more.

Subscribe to our newsletter

To be updated with all the latest news

Anchit Sharma
Anchit Sharma
Anchit Sharma covers evergreen explainers, how-to, tips-tricks, and lists, for Techworm. He previously wrote for GadgetsToUse and TheHackerNews.


Please enter your comment!
Please enter your name here

Subscribe to our newsletter

To be updated with all the latest news

Read More

Suggested Post