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Virtual Credit Cards

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Making your first purchase online can be a little daunting. You may even question yourself again and again. Is it safe? Can I trust the business? Will my credit card details be stolen? On the other side of the coin however is the excitement, the convenience. How simple is this?

Thankfully banks and card issuers have a number of measures in place to help protect you and one of those is the Virtual Credit Card. Designed exclusively for use on the Internet, these Virtual Cards are used in place of your regular credit card to ensure its details and credit line are not compromised.

The Virtual Card is similar in a way to a supplementary or companion card, however it has a completely different card number. It also has its own credit limit that you set personally. It serves only one purpose and that is to make purchases where you do not present the card for viewing, such as the internet. It can not be used to make purchases in regular stores as it lacks all the basic characteristics of a credit card such as a magnetic stripe.

The credit limit you assign to a virtual card should be relative to the amount you choose to spend in online purchases. For example, if your main cards credit limit is P150,000, but you plan on never spending more than P20,000 online, you may set your virtual cards credit limit at P20,000. That way no more than P20,000 can be used with your Virtual Credit Cards number and details. You can request to have your credit limit changed, however check each bank for their terms as you may be limited as to the size of the change and the number of times you can make changes.

Many Banks will provide you with a Virtual Credit Card free from annual fees for life. Be sure to check though with your issuer to see if the finance charges are different and whether you will still be earning rewards.

So in essence, a virtual card is credit card with a lower limit designed to protect your main credit cards credit line and details. If you enjoy your online shopping or have always wanted to give it a go, a virtual credit card just may be the ticket.



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