What is a Virtual Credit Card, and Why Should You Get One?

April 26, 2022
3 min. read

Online shopping is now better and more convenient than before, thanks to the rise of digital payments. Digital payment is a convenient way to settle transactions, especially with people preferring to shop online.

Another reason online shopping has become so popular is that many stores have started offering bigger deals and discounts to online buyers while also providing a new range of products. And, with a virtual credit card for online shopping, you can access exclusive perks from your favorite brands.

If you're unfamiliar with virtual credit cards, read on below to find out how they work, how to use them, and how you can get one.

What is a Virtual Credit Card?

Much like a normal credit card, you can use a virtual credit card to make payments online or perform any other type of online transaction. A virtual credit card also has a card number, CVV number, expiry date, and PIN code provided by the bank or e-wallet. The only difference is that you won't need a physical card when you use it.

How Does a Virtual Credit Card Work?

Virtual credit cards work exactly the same as any other physical cards in terms of how you use them and the security. They’re accepted by any online merchant that accepts credit card payments. Your virtual credit card also comes with limits on withdrawals, transfers, and deposits.

What are the Advantages of Virtual Credit Cards?

Online shopping is already convenient enough since you won't need to go out and physically grab an item and pay for it. But with a virtual credit card, there are even more benefits that can enhance your online shopping experience. Here are some of its most notable advantages:

1. Secure online payments

Even as a digital card you can save on your phone, virtual credit cards are as safe as any other. Since they only work online, card providers use strong and updated encryption to keep your transactions safe and secure at all times. This makes it harder for criminals to use your card for fraud or get a hold of your account and other important details.

2. Easy-to-track transactions

The payments or transfers you make with your virtual credit card reflect in your account history. You can also get instant alerts either through SMS or email every time you make a transaction. These two features make it easier for you to stay on track with your expenses while looking out for any problems or inaccuracies with your billing statement.

3. Fast application

While a virtual credit card essentially works the same way as a physical one, you won't need to go through the trouble of going to a physical bank to get one. You only need to fill out a form online and verify your registration with a few simple clicks.

4. Controlled spending

Like any other bank card, you can set transaction limits on your account. With a virtual credit card, you can set limitations on several factors, such as the number of transactions you can make in a month or the specific merchants you allow and block transactions from.

How to Get a Virtual Credit Card

The application process differs per card issuer. Some banks may require you to first own a physical credit card before applying for a virtual one. The virtual credit card will then serve as the digital version of the physical card but with a different card number. This allows you to make transactions with your primary card without exposing your account number to data breaches.

For other issuers like e-wallets, you can just send your application online and confirm the process via email or SMS.

Modern Payment Solutions in the Age of Technology

Thanks to its convenience and many benefits, online shopping has become a big hit. With the ever-evolving payment technology, there will also be new and more secure ways to settle your transactions online. One of these is a virtual credit card.

Having a virtual credit card can make a big difference for frequent online shoppers and anyone who wants an easy way to handle payments digitally. If you want to get one for yourself, check out RCBC’s ZALORA Credit Card. Approved cardholders automatically receive a virtual card so you can start shopping online and earning rewards before your physical card arrives.

Apply now to enjoy the perks of having an exclusive credit card for online shopping!

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