How virtual credit card numbers protect your information
Quick insights
- Virtual credit cards are an issuer-provided card with alternate details tied to the same account.
- Virtual credit cards generate a new card, expiration date and security code may be used for a single purchase, for a specific merchant, or reused until rotated—depending on issuer.
- Chase does not offer virtual credit cards.
Many customers prioritize safety when making payments online. Virtual credit cards are generally considered safer for online payments because they use a different, temporary card number instead of exposing your real card information to the merchant.
In this article, we’ll discuss how virtual credit cards work and how they can help protect your credit card information while making payments online.
Understanding virtual credit cards
Virtual credit cards are digital versions of your physical card. They use an alternate card number, expiration date, and CVV that link to your existing account—so they’re not a separate account. Because the virtual card details don’t reveal your actual card information, they can help protect you online. You still receive the same card benefits, such as earning rewards on eligible purchases.
Virtual cards can be generated for single-use or multi-use. Also, not all card issuers offer virtual cards.
The specific features and usage rules of virtual credit cards vary between different card issuers, so it's important to check the terms and conditions of your specific card.
Using virtual cards to make purchases
Virtual credit cards mask your card information and securely transmit it to merchants. When making a purchase, the merchant may not receive the underlying card number associated with your account. However, the card issuer can still associate the virtual number to your account for billing and support.
Some merchants—notably those in travel and hospitality services—may not allow virtual card transactions, as they sometimes require the original card details for incidentals and verification.
Your virtual credit card could also help you earn rewards points. Purchases made with a virtual credit card usually earn rewards or points the same as traditional credit cards, but this is subject to issuer terms.
Virtual credit card protections
Virtual credit cards may include the following:
- Protection: When you use a virtual card, merchants receive a virtual number rather than your card’s real number.
- Set restrictions: Some virtual cards allow you to set spending limits and custom expiration dates, meaning they can’t be used after a certain date or for more than their allotted amount.
- Controls: Depending on your card issuer, you may be able to lock, change or delete your virtual card at any time without impacting your ability to use your actual credit card.
Tracing virtual credit cards
A notable feature of virtual credit cards is that they mask your real card number from merchants. The virtual details are usually linked to your underlying account, but if intercepted, they generally do not reveal your actual card information.
The fact that your card numbers may not be easily traceable could pose challenges in certain situations. If you use a virtual card to purchase something and then want to return it, you may not have the card’s numbers to verify the purchase.
Similarly, if you’re checking into a hotel or renting a car and need to produce the card to verify the purchase, you may not be able to. When making purchases with a virtual credit card, there may not be a need to present a physical card as part of the transaction.
How to use virtual credit card
Virtual cards typically can be used for online transactions where your physical card is not present. You also may be able to add your virtual card to your phone’s digital wallet as a contactless payment option, but this is dependent on the issuer.
Virtual credit cards are similar to digital wallets in that they both often use tokenization to protect your credit card information, but they are not the same thing. Two key distinctions include:
- Virtual credit cards can be used outside of a digital wallet and use alternate details for card transactions
- Your digital wallet uses a device token for contactless and in-app purchases
Common uses for virtual credit cards include online shopping with unfamiliar merchants, managing subscriptions and free trials and limiting exposure when saving your card on file at an online merchant.
One potential drawback to using a virtual credit card is that it can be difficult to return items bought with a one-time virtual credit card token. It can also potentially cause confusion when you make a reservation online and need to verify it with your card number.
In summary
Virtual credit cards can help provide a safe and secure way to make transactions online. They may be able to be locked or deleted without affecting your ability to use your card. Virtual card features are dependent on the card issuer and product.
Virtual credit cards create card numbers, expiration dates and CVV codes to help reduce the sharing of your account and card information with merchants. Not all credit card issuers offer virtual credit cards (Chase included), so check with yours if you’re interested in getting one. Digital wallets may be an alternative to virtual cards in card-not-present transactions.
