Although credit cards have made it convenient to make purchases, it is exposed to several risks because of online transactions. Therefore, it’s crucial to safeguard against cyber thefts or other misuses. In addition, to ensure that digital cards have acquired a special place.
As is clear from the term itself, a digital credit card is an add-on credit card, which acts as a virtual version of the physical one. Although the virtual cards have similarities with the traditional credit cards in that they too have a card number, dates of validity, and CVV, such details remain online only. Besides, you can also prescribe a limit on it with the help of your credit card account.
Besides, creating a virtual credit card does not affect your credit score. Although, if you approach a financial institution to get it, it depends on whether the institution chooses to keep it private or not.
As it is also known, a cloud credit card helps you carry out the payment by entering its number, validity, and one-time password. You receive these on your number. However, you can use the virtual version a limited number of times and places only to ward off any security breaches.
Although its benefits are many, some advantages have made its usage popular.
Security
As already discussed, virtual cards were created primarily for security reasons and can be used even once. Typically, you can use a digital card online within a day or two, which minimizes the probability of risk. Besides, its use is sanctioned and regulated by the Reserve Bank of India, making it safer.
Worldwide accessibility
According to your convenience, you can use a digital card to make payments easily within or outside the country.
Availability
Unlike a physical credit card, digital ones can be accessed online, making it easier to use anytime without requiring the need to carry a card.
Unvarying CVV
The CVV of a virtual card remains unchanged however many transactions you make using it. So for the period, you are using it, it is the same, unless, of course, you cancel it to get a new one.
Quick to procure
Another advantage of a digital card is getting it instantly if you already have a physical credit card. It is possible to block it too in a twinkling in case of a threat to its security.
Proper usage of credit
When the virtual credit card is canceled or outdated, its remaining credit money balance transfers to the physical one, thus ensuring its optimal utilization.
Credit limit
Like a physical credit card, digital ones also have a credit limit, making it possible to carry out more transactions while not exceeding it. Their credit limit is the same as the normal ones.
No extra charge
A virtual card doesn’t entail any extra charges and is free, thus making it an attractive security option.
Convenient
It’s convenient to use a virtual credit card rather than carrying a physical card with you all the time. You can save its details on a phone or any other way to use it while making a payment, which minimizes the risk of losing the card. In addition, a digital credit card is easy to cancel since you can use a smartphone.