- A virtual credit card replaces your regular credit card number when making a purchase.
- Using a virtual credit card can protect your financial information from fraudsters.
- A downside for merchants is that virtual credit cards can make it harder to identify customers.
What is a virtual credit card number?
A virtual credit card number is a unique but temporary digital card number linked to your primary credit card account.
How virtual credit card numbers work
Virtual how to report and dispute fraudulent transactions, is also crucial for effective use.
Limitations and drawbacks of virtual credit card numbers
While virtual credit card numbers can protect you against fraud, there are some challenges you might face when using a virtual card.
Where virtual cards may not be accepted
Only some businesses accept virtual credit card numbers. Smaller merchants that only do in-person transactions could struggle to process them since they don't have a physical card to swipe. That's especially true if the merchant doesn't accept mobile wallet payments.
Challenges with recurring payments and refunds
When you're using virtual credit card numbers for recurring payments like subscriptions, issues can arise because the payments are often linked to your original card number. This can be a problem if the virtual card number expires or the limit is reached. Additionally, refunds can sometimes be more difficult to process if the virtual card numbers have expired or don't match the original payment method on record.
Expiration dates and card management
Virtual cards can be harder to manage than physical cards because they often have shorter expiration dates. If you have more than one virtual card, keeping track of each card's validity can be more challenging. Having a system in place to help you manage multiple cards — whether physical or virtual — is the key to avoiding issues.
FAQs about virtual credit cards
Can I use a virtual credit card for in-store purchases?
You may be able to use a virtual credit card for in-store purchases. Virtual cards are primarily designed for online use, but some providers might offer options for in-store purchases through mobile wallets.
How do I cancel a virtual credit card?
You can usually cancel or delete a virtual credit card through your credit card issuer's website or app, instantly stopping any further transactions with that number.
What happens if I need to return an item purchased with a virtual credit card?
If you need to return an item purchased with a virtual credit card, the process should be the same as with a physical card, with refunds issued to your virtual card number and then credited to your main account.
Can I earn rewards with a virtual credit card?
Yes, transactions made with a virtual credit card typically earn rewards just like those made with your physical card, depending on your card issuer's policies.
