Technology has become a part of our lives instead of something luxurious. The advancement can be seen and felt everywhere, including the finance sector. A virtual credit card is one such example.
What is a Virtual Credit Card
Virtual credit cards are the digital version of physical credit cards. They are available on the mobile phone, which helps in easy access. These cards save the user from the trouble of carrying physical cards everywhere, improving the customer experience.
Pros of Virtual Credit Cards
- Easily accessible
- No inconvenience of carrying a physical card
- Environmentally friendly
- Enhanced user experience
Cons of Virtual Credit Cards
- Requirement of a good internet connection
- Cannot be used in ATMs and in-person transactions
- Exposure to online fraud
- Limited to a few merchants
Physical vs. Virtual Credit Card
| Feature | Physical Credit Card | Virtual Credit Card |
| Form | Plastic card issued and delivered physically | Digital card issued instantly via app or net banking |
| Usage | Can be used online, at stores, and at ATMs | Mostly limited to online and app-based transactions |
| Availability | Takes 5–10 days for delivery | Available instantly after approval |
| Security | Prone to theft, skimming, and loss | Safer with limited exposure; easily lockable |
| Card Number & CVV | Printed on the card | Shown only in the app or banking portal |
| ATM Withdrawals | Yes (if enabled) | Not allowed |
| Replacement Process | Requires reissue and physical delivery | Can be regenerated or blocked online instantly |
| Best Use Case | Daily offline & online purchases | Secure online shopping, subscriptions, and trials |
| Examples | HDFC Regalia, SBI SimplySAVE | OneCard, HDFC NetSafe, Slice, Paytm, SBI Virtual Card |
Also read: Shocking Truth: Can a Family Loan Destroy Your CIBIL Score?
How To Get Instant Virtual Credit Cards
1. Choose a bank: The first step is to decide whether the user wants a virtual credit card associated with which bank. Several banks offer this service, like HDFC, ICICI, Axis Bank, SBI, etc., or the user wants “OneCard,” which is a co-product of multiple banks.
2. Download the Fintech apps associated with the bank chosen: Fintech is the platform that banks provide to facilitate the process of issuing virtual credit cards.
3. Complete KYC Verification: KYC (know your customer) is a precautionary measure taken by every bank against fraud. It requires documents like a PAN card, an Aadhar card, along with video call verification in some cases.
4. You can receive the card instantly: After completing the KYC verification, the card will be issued instantly. All the details like card number, CVV, and expiry date, similar to the physical plastic card.
Following this easy and simple card, one can get a credit card instantly and use it for purposes like shopping, bill payment, subscribing to online platforms like Netflix, etc. The wait time is eliminated as the card is issued instantly.
Eligibility Criteria for Instant Virtual Credit Cards
- Age: The applicant must be above 18 years if going through banks. Some platforms offer underage services as well, but it is recommended to read the terms and conditions carefully.
- Residency: The applicant must be a resident of India
- Credit Score: Some banks have a strict policy of reviewing the credit score. Applicants with good credit scores are preferred by banks.
- Documents: Documents such as PAN card, Aadhar card, etc. However, it can be subjective depending on bank to bank.
Virtual Credit Card in India
| Provider | Associated Bank | Key Features |
| OneCard | SBM Bank, Federal, BoB, SIB | Lifetime free, instant app-based card |
| Slice | Previously SBM, now a fintech | Instant approval, credit line-based, youth-friendly |
| Paytm SBI Card | State Bank of India (SBI Card) | Instant virtual card on Paytm before a physical card |
| HDFC NetSafe | HDFC Bank | One-time-use virtual cards linked to an HDFC account |
| ICICI Bank | ICICI Bank | Virtual card via iMobile Pay app |
Bottomline
The conclusion can be drawn that a virtual credit card is a digitally available card with its pros and cons, along with the difference between a physical and a virtual card. The process of availing this service is very easy and requires simple steps that are to be followed. However, it is advised to exercise some caution while using the card to avoid any fraud or scam.
Written by Tanya Kumari
