Introducing Virtual Credit Cards-A Smarter Way to Pay Online

Have you ever had the sickening realization that there is an unauthorized charge on your credit card?

What follows is the lengthy process of canceling the card, waiting for the new one, and spending tons of time updating all the places you use your credit card online.

Unless…you used a virtual credit card.

Why I have been unaware of the existence of virtual credit cards is a mystery to me.

My Story

Last week, while enjoying a girl friends beach getaway, Isaac called to tell me that his credit card had been hacked once again.

He is a gamer and uses his credit card online, so his card gets hacked way more often than the norm.

The process of canceling the card, waiting for the new one, and updating all his online subscriptions is a time-consuming hassle.

While telling me about the latest episode I homed in on the fact that he mentioned having immediate access to a virtual credit card.

Having never heard of the term, I immediately did an internet search to see what he was talking about.

Mind blown here!

How is it possible that I have never even heard of this?

Introducing the virtual credit card!

What is a Virtual Credit Card?

A virtual credit card acts like a mask for your real credit card.

It looks like a real credit card, and it does the job of a real credit card.

However, it’s not real and it never puts your real card at risk.

Here’s How It Works

Assuming your credit card company offers them, requesting a virtual credit card is a simple as clicking a request button on the site or in the app of your credit card company.

Immediately a digitally created credit card is generated, complete with its own unique card number, expiration date, and CVV.

It’s linked to your actual card, so any charges made using the virtual card show up as charges to your real card.

You can request one card or multiple cards. If you choose multiple cards, each card will have its own identifying information.

Write this information down. Remember, there is no physical card to use as a reference,

Note: With Capital One, the number can be viewed but you have to be texted a code as a security precaution.

Using A Virtual Credit Card

These cards are meant for digital use only-they won’t replace your physical card when a store where it needs to be scanned.

With Capital One, the card I use, you can create one virtual card for all your online purchases and subscriptions or generate separate cards for each individual vendor.

You can even mix and match.

For example, if most of your usual online shops have never given you trouble, you might link a single virtual card to those trusted sites.

But if there’s one retailer you suspect is behind security issues, or you want to make a purchase through a retailer with whom you’re not familiar, you can generate a vendor-specific virtual card and use it only there.

If that card takes a hit, you will only need to shut down the one card, and it’s so easy to do!

Can a Virtual Credit Card Get Hacked?

Yes, it can.

But the beauty is in how easy it is to recover.

There’s no reason to shut down your entire account.

You won’t need to wait for a new card to arrive.

It’s a simple process of locking or deleting the virtual card and requesting a new one.

You will need to report unauthorized charges in whatever way you are used to doing that.

Imagine being on vacation and needing to shut your card clear down. Ouch!

The Disadvantages

While small, there are a couple of disadvantages associated with virtual credit cards.

There’s no physical card so it’s still necessary to carry a physical card for in person purchases.

No refunds can be applied to a virtual card that has been locked or deleted. (For this reason, I would opt to lock a card for a period of time instead of deleting it.)

Not all credit card companies offer virtual cards.