Virtual credit cards are becoming popular for some users who want to reserve the cards for exclusive online use. Others seek to control their personal purchases by opting for a special kind of virtual credit card – reloadable. In either case, virtual credit cards are attracting more attention around the world and interested parties have many questions about this new financial tool.
What Is A Virtual Credit Card?
A virtual credit card works like a “real” card. The only difference is that users never get to hold an actual card in their hands. Instead, they receive a card number and authentication code. This information, used with the traditional name, address, and so forth, is really all the user needs to complete a purchase with the virtual card.
There are two basic types of virtual credit cards: a virtual prepaid credit card and an instant virtual credit card. prepaid cards come in a fixed denomination. Most can be purchased online at their face value plus the service fee or transaction fee charged by the issuing financial institution. Because prepaid virtual credit cards are issued in a set, usable amount, the user will not be facing future bills, a fact many find attractive.
Applying for instant virtual credit cards, on the other hand, follows a more traditional procedure. The applicant supplies a billing address to the issuing bank, which, in turn, verifies that data and other necessary information. When the cards is granted and used for purchases, the card holder will receive a statement of account listing all transactions and showing the total amount due.
How Do Users Apply for Virtual Credit Cards?
Acquiring a virtual credit card is little different than applying for a physical card. Applicants fill out an account application, providing the car issuer with the required information. Depending on the nature of the virtual credit card, an approval process of varying duration will be carried out. For prepaid virtual credit cards however, there is no extended approval process since the user is essentially purchasing the card.
Once the card is approved or purchased, the cardholder receives the necessary virtual credit card numbers which can be used for purchases that are both domestic and international. Virtual credit card “shops” or issuing institutions are easily found online with a simply search for the phrase “virtual credit card.” (Be sure to carefully read all aspects of the user agreement before applying for any type of credit card.)