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 can be used for online shopping, subscription services and in digital wallets.
If you're running out of available card slots in your wallet, you may benefit from the convenience of a virtual credit card. They provide the spending power of a credit card without taking up any room in your wallet. 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).
Virtual credit cards are gaining popularity, especially with the rise of online shopping and the increased desire for additional digital payment methods. Virtual credit cards could potentially enhance security by limiting the exposure of your actual card details. They can also be managed through your bank's app or website.
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 like Apple Pay, Google Wallet or Samsung Pay. This allows you to use your virtual card 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 if you’re able to get one.
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.
Note that Chase does not offer virtual credit card options. If your card issuer does not provide virtual credit cards, you likely can still use your card as a contactless payment 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 provide added peace of mind when shopping online.
- Tracking: Transactions made with a virtual credit card may be listed separately in your account statement, which could make it easier to track your spending.
- Global acceptance: Virtual credit cards can usually be used for international transactions, making them a convenient 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 credit card could earn points the same as traditional credit cards (depending on your specific card account and issuer).
There are typically no costs associated with getting a virtual credit card if your card issuer offers them.
In summary
A virtual credit card is a digital version of a traditional credit card. It allows you to make purchases without exposing your actual credit card details. Your card issuer will provide you digitally with the card number, expiration date and security code. Not all issuers may offer virtual credit cards, so check with your financial institution.
