Are you enthusiastic about online shopping? Or, are you tired of losing money to online scams? Either way, you must think about the safety of your finances when purchasing goods from the internet. With the development of technology over the years, it is easier than before to fall prey to online fraud. This is because of the different illegal activities like hacking, which are performed quickly and safely by specific individuals.
Other than cash fraud, identity fraud is also standard these days, especially if you are providing your bank account details to an online seller. Hence, it is vital to take all necessary precautions when shopping online. One way to reduce the risk of online frauds is by having a Virtual Credit Card (VCC). Are you unfamiliar with Virtual Credit Cards, or do you think that these cards do not provide the required safety when shopping online? Today, this article will try to answer all your questions regarding Virtual Credit Cards and why it is the best option!
What is Virtual Credit Card?
As the name suggests, Virtual Credits Cards are credit cards for online use except that your credit card company does not physically issue them. It consists of a non-permanent, randomly generated 16 digit number, which is used for online payments, etc. They are linked to your bank account, but they are created in such a way that it makes it difficult for online criminals to commit fraud.
Mostly, VCCsare used for one-time use. They expire after almost a month, and if you do not spend the money before expiration, it is transferred back to your bank account safely and quickly. In short, these cards protect your online identity as your original credit card is not used!
How Does Virtual Credit Cards Work?
You can easily generate Virtual Credit Cards by contacting your provider over the internet. They will provide you with all the details related to your Virtual Credit Cards. After that, it works just like a regular credit card. All you have to do is put the random number from your Virtual credit cards whenever making a purchase and, the amount will be deducted automatically! Moreover, this temporary credit card number cannot be used by online thieves to track your main account, making payments a safe medium.
Benefits Of A Virtual Credit Card For Consumers
There are many features concerned with Virtual Credit Cards that make it beneficial for people who shop online frequently:
1. HIGHER SECURITY
The primary benefit of VCCsis that they are safe. Using this type of credit card will protect all your personal details. In this way, you will never be exposed to online frauds, etc.
Furthermore, being physically non-existent, these credits cards can not be duplicated. Therefore, the chances of any sort of theft are significantly reduced.
2. BUDGET MANAGEMENT
When using these cards, you can specify the maximum amount you want to use. In this way, you can refrain from overspending.
Credit card information can easily be stored on your mobile device, making it extremely comfortable. There is no risk, like losing your credit card. Hence, it is also very safe.
4. EASY CANCELLATION PROCESS
There is no reason whatsoever to cancel your Virtual Credit Cards. But, in case you do want to cancel it, it can easily be done using your smartphone. Also, there is no need to visit your bank or submit a letter, etc. to finalize the cancellation of the card.
Most banks do not charge for this sort of credit card. However, it depends on the provider. It is strongly advised that you gather more information regarding this matter from your bank.
6. INVOICING AND TRACKING
Having piles of receipts is not convenient at all! With these virtual cards, you can save all your shopping records like slips in your email account. So, you do not have to worry about losing your bills at all.
7. MONEY AFTER EXPIRATION
If you did not spend the money from your VCC before its expiry, there is no need to worry! All your cash will be safely deposited back to your original bank account.
Benefits From A Seller’s Point Of View
There are many advantages ofusingVCCsfor online businesses as well:
1. BETTER SECURITY
Payment-related fraud is not only limited to consumers. Many sellers experience internal fraud when processing payments. The use of VCCs makes all the payments paperless, resulting in more secure payments.
2. MORE REACHABLE
This is one of the most key advantages of these impressive credit cards from a seller’s point of view. These cards allow customers from all over the world to purchase goods rather than just people from nearby areas. So, this pushes the boundaries of a business to a greater extent!
3. FASTER PAYMENT PROCESSING
It is challenging for online sellers or companies to process personal cheques from customers as it takes several days to clear a single check. This is where VCCs provide a significant advantage to online sellers or companies: they provide sellers with instant payments!
In the past, Virtual Payments came at a high price. However, now it is the most affordable way to accept payments from all over the world! So, regardless of the size of your business, VCCsare a very effective way of processing payments from all over the world!
DISADVANTAGES OF A VCC
Like every other service, these cards have some cons as well, including:
1. NO OFFLINE PAYMENTS
VCCscan only be utilized for online payments, which is not a big problem as the internet has become an integral part of our lives, and almost everyone around the world has access to it.
2. NO SECONDARY CARDHOLDERS
These credit cards can only be allotted to primary cardholders. Hence, secondary cardholders cannot get this service.
3. VCC RETURNS
If you own one of these credit cards, online returns can be problematic for you. This is because the card expires after a month, and you might not be able to use it for returns. However, if your bank allows it, you can extend the expiration date as per your liking.
4. LIMITED AVAILABILITY
These cards are a service offered by very few banks around the world. Some services like American Express and PayPal have discontinued this service due to unknown reasons.
5. VERIFICATION, ESPECIALLY ON TRAVEL-RELATED PURCHASES
This is not a significant issue in online shopping, but when you are using it for renting a hotel room or a car, you will be asked to verify it by physically swiping a credit card. However, these cards can be used for booking purposes.
6. NOT 100% EFFECTIVE
Nothing qualifies the barrier of perfect when it comes to technology. Any online seller can succeed in fraud if you do not specify an appropriate expiry date and budget for your VCC. So, this must be considered before getting one.
There is no doubt that these credit cards are an excellent way of payment for people who are frequent online shoppers. The main reason behind this is that these cards can be created from the comfort of your home, without even going to the bank! Like any other service, these cards are not the full-proof solution to online fraud. However, if used rightly, they are an excellent way to minimize the risk of it.