A guide to virtual credit cards
Quick insights
- Virtual credit cards are issued by some banks and credit card issuers.
- They provide a randomly generated card number, expiration date and security code for online transactions.
- Virtual cards may be used for online shopping, subscription services and in digital wallets.
Virtual credit cards can help make your next online transaction more secure. In this article, we’ll walk through what virtual credit cards are, how they work and how you may be able to get one through select credit card issuers.
Understanding virtual credit cards
A virtual credit card is a digital version of a traditional, physical credit card rather than a separate card or account. The virtual credit card is tied to the same account as the physical credit card.
The difference is in the way the cards are used for transactions. Virtual credit cards provide a randomly generated card number for online transactions. This card number can be used for a singular transaction, or it may be used repeatedly (depending on the credit card issuer and its terms and conditions).
Some issuers offer virtual card numbers. Chase credit cards can be added to digital wallets for contactless payments, but Chase doesn’t offer issuer-generated virtual card numbers.
Virtual credit cards can add a useful layer of security for digital payment methods by masking your actual card details and limiting exposure if a merchant is breached.
How virtual credit cards work
Virtual credit cards work much like traditional credit cards. They are issued by your bank or credit card issuer and provide a randomly generated card number, expiration date and security code for online transactions.
You can typically use a virtual credit card for several types of purchases:
- Online shopping: When you're ready to check out, enter your virtual credit card number, expiration date and security code, just as you would with a physical card.
- Subscription services: You may be able to use your virtual credit card to pay for subscription services or any other online service that requires a recurring payment. Note that the ability to pay for recurring payments may depend on your bank or card issuer.
- In-app purchases: Virtual credit cards may be able to be used for in-app purchases on platforms like the Apple App Store, Google Play and other app stores.
- Digital wallets: Some virtual credit cards can be added to digital wallets for contactless payments at physical stores that accept these payment methods.
Remember, while a virtual credit card can be used for most online transactions, not all merchants may accept them—especially for transactions that require a physical card.
How to get a virtual credit card
Keep in mind that not all credit card issuers offer virtual versions of their cards. The first step of getting a virtual credit card may be to determine your eligibility.
If your card issuer provides a virtual credit card option, you can typically request one through your online bank account or mobile banking app. Once the bank approves your request, you can usually begin using it right away since you won’t need to wait for a physical version. Depending on your bank or card issuer, you may also have the option to choose how long you want the number to be valid.
If your card issuer does not provide virtual credit cards, you likely can still use your card as a contactless payment method through your phone’s digital wallet.
Benefits of using a virtual credit card
It can be easy and convenient to use a virtual credit card, especially when you consider their potential compatibility with online shopping and digital wallets.
Some benefits of virtual credit cards may include:
- Security: Virtual credit cards can help provide added peace of mind when shopping online.
- International use: Virtual credit cards can be used for international transactions where card-not-present transactions are possible, making them an option for shopping on foreign websites or when traveling.
- Rewards: Your virtual credit card may help you earn rewards points. Purchases made with a virtual card can earn points or cash back the same as a traditional card, depending on your issuer and card account.
- Cost: There may be no costs associated with getting a virtual credit card, depending on your card issuer.
In summary
A virtual credit card is a digital version of a traditional credit card. It allows you to make purchases without sharing your card details. Your card issuer will provide you with a digital card number, expiration date and security code. Not all issuers offer virtual credit cards, so check with your financial institution.
