The biggest problem of using a credit card online is the fear of getting scammed and losing the card information. When you shop online, you have to put in your credit card information on the check out page of an eCommerce site. If the website gets hacked, you’re in trouble of losing the card number and info to the hackers. They could use your card anywhere and steal your money before you know it.
However, Virtual Credit Cards (VCC) is the best solution to this uncertainty of getting exposed to hackers. You can use a VCC number to verify your PayPal account and shop online without using the real card number. In this article, I’ll get you through the tips you must know if you want to use a VCC or to use one.
What is a VCC
A VCC (Virtual Credit Card) is a non-physical card that has a similar number as a real credit card. You have to use a website or an app to generate a virtual number that you can use as a credit card number. The main difference between the real card and the virtual card is usability; the virtual credit card is a single usage number. Some virtual credit card issuers issue the number for a certain period, though. In that case, you can use the virtual card number until the expiry period is gone. After that, you have to generate a new credit number using your main credit card.
7 Tips for Using VCC
You can use a VCC the way you use your regular credit card for shopping or verify your PayPal account. Here are the tips you should know about VCCs that can help you get and use them properly:
VCCs are only Usable Online
The virtual credit cards are here because of credit card scams online when a store gets hacked. So, the primary perspective of a VCC is to protect your physical credit card from the scammers. For this reason, you can use a VCC only online while shopping or wherever you need a credit card. However, if you’re using it for your PayPal account verification, you should use a card with multipurpose usabilities.
You Need an Existing Account for VCC
The Virtual Credit Card isn’t your bank account or a real card that you can recharge and use. You have to link the VCC to an existing account that has the actual money in it. You can use the VCC for shopping online and making purchases, and it will draw the money from your account. If you’re using an extended VCC with multiple usabilities, you can check the monthly statements regularly.
You Have to Monitor Your Credit Statements
Although you’re using a VCC instead of your actual credit card, nothing is secure enough online. You should still keep your main credit card secure from the fraudulent by keeping an eye on it. The easiest way to do it is to keep your credit card under surveillance with monthly statements. The best thing about the VCCs is, you can pinpoint the location of the fraud if you ever get hacked. As the VCC is for a single vendor usage only, it’s easier to take the statements and keep it safe.
VCCs come With Software or Extension
As the VCCs are usable online only, you have to use dedicated software, a website, or an extension. With the dedicated interface, you can insert your physical credit card number in an input field and generate a new number. The new card number will be your next credit card number that you can use online, like your credit card. You can use the VCC number once or multiple times according to your free or paid subscription.
Setting Limits for Different Vendor
With a VCC number, you can set the maximum payment limit for a single vendor or merchant. When you have a single vendor for a single VCC number, no other vendor can use the number for payment. This way, the frauds cannot use it anywhere after hacking the VCC number. By setting the maximum limit for a particular vendor, they cannot even cost you more than that using the same vendor too. It’s the finest security measure of a VCC number that you cannot get from a real Credit card.
VCCs are Ideal for Recurring Payments
If you have a recurring payment to make every month, the chance of getting stoned is the highest here. If your vendor isn’t secure enough, hackers may get into the server and mess it up pretty badly. However, if you use a VCC and set the recurring payment with a payment limit of the amount, the risk isn’t there. Once the payment goes to the vendor at the end of the month, the recurring payment will automatically renew.
Only Selected Issuers Can Provide VCC
Generating a Virtual Credit Card number may seem a piece of cake once you get a subscription. But, getting the VCC isn’t an easy thing to process as it includes financial matters. Only some selected credit card issuers can issue VCCs, including Citibank, Bank of America. Some other banks also provide VCC numbers for their cardholder for a single-use or limited time up to a year. What if your bank doesn’t provide VCC? Well, in that case, there is some third-party app, such as Entropay, to generate a VCC number. You have to link your credit card to the service and generate a new VCC every time with them.
Often, we come across different news of credit card scam online, or a hacking where millions of credit card numbers get stolen. People use their credit card numbers and information to shop online, and the eCommerce sites store them. When a site gets hacked, the hackers can get those card numbers and use them for their bad intention.
You can use a VCC number to keep your real credit card number safe from anybody online. The VCC will contain the backend information of your real card and work as a placeholder. When you have to verify your PayPal account or make purchases online, the VCC will keep you safe from potential threats.