Virtual Credit Cards: 8 Tips for Using Temporary Cards

virtual credit card
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People are getting more into online shopping and credit card fraud; breaches also often make front-page news. Using virtual credit cards are the best at keeping your actual credit card safe while shopping online or sharing your card number in general. You can hide the actual credit card number using the one-time VCC number every time you make a new purchase. 

 

This way, you can avoid credit card fraud, use PayPal VCC for verification, and hide your card number while sharing. Hence, if you’re planning on using a VCC or already have one, you must know some tips that can help you operate it properly. Stick to the article to know the best tips for using any temporary VCC cards to keep your money safe and secure:

8 Tips for Using Temporary Cards

Using a VCC can come with a whole lot of advantages, especially at securing your actual credit card information. Here are the 8 best tips you should know for using your VCC number with its best potential:

     1.You need an existing credit card first 

A Virtual credit card is not an actual credit card at all; rather, it’s a credit card number representing your physical card. It will have a 16-digit card number as you have on your physical card, and you can use it the same way. You can generate and use a new number every time you purchase, share your credit card information, or do something else. So, it needs you to have an existing, physical credit card and hopefully from a bank that provides VCCs themselves. If your bank doesn’t have the service, you can still obtain VCCs from several online VCC providers. 

      2. Understand how it works

When you put your payment information on the checkout while shopping online, you’ll use the VCC instead of the actual card. It will draw the balance from your real credit card and pay the vendor you’re paying. The best thing about it is when the e-commerce site gets compromised; the hackers are getting a one-time card number. They cannot use the card number anymore as it’s expired right after the purchase you made with it. You can now stay worry-free with that convenience after sharing your credit card information with any vendor online.

     3. Recurring payments are available

As you can see, VCC numbers expire when you use it once, but what about recurring payments online like Netflix subscriptions or monthly bills? Well, a VCC also has versatile usabilities like the physical credit cards, especially recurring payments. If you have a recurring payment to make each month, you can set a custom expiry date for the VCC while you generate it. For example, if you set the card to expire in 12 months, you can pay with it for recurring bill payment of 12 months.

     4.Setting limits for different merchants 

When you generate a new virtual credit card number, you can set a maximum limit for the card or a particular merchant. If you’re concerned with a merchant, you can use this feature of virtual credit cards and secure your money. It’s especially applicable for VCC numbers with longer expiration dates that you’re using for recurring payments. If the vendor gets compromised, the hackers cannot exceed the amount preset for the vendor.

    5. Not every card issuer offers VCC

Getting a virtual credit card can be easy, but not every credit card issuer has the VCC service for their cardholders. If you’re a credit card holder from the bank of America, you can use their ShopSafe service to obtain a VCC. There are other VCC providers, such as Citi Bank, Payoneer, Neteller, Walmart MoneyCard, etc. Whether you’re using a Visa or Mastercard, you can link your VCC to either of them and use all the services. Contact the credit card issuer company you use and ask if they’re offering VCC service.

    6.Third-party VCCs are available

If you’re using a credit card from an issuer that doesn’t provide VCC service, you can still obtain a VCC card from third-party issuers. Many renowned VCC providers are doing pretty well, such as Netspend, Entropay, etc. The third-party VCC provider will connect your credit card as a billing card and bill you like a vendor. However, there is a drawback in using third-party services that you’ll get a bill from the provider, not your bank. It makes tracking the money a bit difficult, and a little security concern still remains there. 

    7. You should monitor statements and scores

Virtual credit cards surely get you the security and privacy you need for online shopping and while sharing your credit card info. However, that doesn’t set upi free from monitoring your spendings and the credit scores. Nothing can get you 100% security or make it foolproof for you, and that’s true for VCCs as well. Hackers won’t cut a huge chunk of money from your card; rather, they start with small amounts and increase it slowly. If you keep track of where even a cent goes without your knowledge, you can take immediate action. 

    8.Virtual credit cards are only for online use

Virtual credit cards enable you to hide the actuarial credit card number and use a temporary one instead, and that’s great for security. However, the biggest drawback of virtual credit cards is, you cannot use the VCC in physical stores. You have to use the physical credit card instead of the VCC number while shopping offline. The VCC service provider doesn’t get you a physical card; they get you a web interface, an app, or a browser extension to generate the number.

Final thoughts

Secure VCC

Security has become a major concern with the higher security breaches rate, especially for credit card fraud online. Virtual credit cards get you the security you need for your credit card and help you shop without getting compromised. If you’re still using a physical credit card number for shopping online, it’s high time to obtain a VCC service. With the VCC, you can now replace the actual card information with a temporary one and stay worry-free. You’re not ruining your peace of mind after the purchase because the merchant or vendor may get hacked. 

 

Pritika Kalani

Pritika is the Chief Content Officer at Raletta. She enjoys writing about food, fitness, finance and everything in between.

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