What are virtual credit cards?
Heard about virtual credit cards but not really sure what they are or how they work? Read our guide and we'll walk you everything you need to know.
Key takeaways
Virtual credit cards offer an added layer of security and convenience
Available through an app on your phone and is added to your Apple Pay, Google Pay or Samsung Pay wallet
You can set spending limits and usage periods to help with budgeting
Personal information isn’t directly entered into online stores
What is a virtual credit card?
A virtual credit card acts as a digital alternative to the credit card in your wallet.
Using a randomised credit card number instead of the long one on the front of your card, it can be used as an added layer of security - ideal if you don’t want companies storing your card details.
This can help protect you from data breaches, as the virtual card number is usually only used once or over a limited period, with a new one usually generated each time you make a purchase or when you choose to change it.
How do virtual credit cards work?
A virtual credit card can be generated via your bank or credit provider, usually then being made available via an app on your phone.
By adding it to your Apple Pay, Google Pay or Samsung Pay Wallet, you can then make purchases in shops using the card.
When you use the virtual card, it creates a new 16-digit number rather than giving shops or online stores your actual card number.
It might even give a new card verification value (CVV), the three-digit code you find on the back of your card.
This way if details get stolen in a data breach, your actual card number won’t have been shared.
You may have noticed the option to use a virtual card when a form auto-fills in Google Chrome or when using Safari on an iPhone.
By doing so, you’re adding an extra layer of security.
Some virtual cards let you set spending limits, use different card numbers for each transaction or choose to have one number for a set period, for example 24 hours.
Check directly with your provider to see if you can get a virtual credit card.
What are the advantages and disadvantages of virtual credit cards?
Advantages:
Stronger security: By randomly generating a new card number each time you make a transaction, your details will not be stored on any servers, lowering the chances of your information being exposed in a data breach
Phone control: By controlling your virtual credit card via an app on your phone, you can set spending limits and only use the card for a period of your choosing, helping you to budget better
Auto fill: The fact that forms auto fill on the likes of Chrome and Safari make it easy to use virtual cards
Disadvantages:
Don’t always work in high street shops: You’ll need Apple or Google Pay or Samsung Wallet on your phone and for the shop to accept these payment methods
Not every bank is on board: You can’t get virtual credit cards from all banks, so you should check to see if they’re available
Reliance on your phone: If you solely rely on a virtual wallet and your phone battery dies, for example, you won’t have another payment method
Are virtual credit cards safe?
Yes. Virtual credit cards are safe. In fact, they are generally seen as safer than regular credit cards as they do not require you to enter your personal information, such as the long card number, into any online store.
Where is my online card kept?
Your online card is kept on your bank’s app and in your Google, Apple or Samsung, if you have one.
These can usually only be accessed via numerous security layers, such as through Face ID on an iPhone.
Your card details will change as the number generated for each purchase is almost always a one-off. So your details will be secure.
Can I get a virtual debit card?
Yes, you can get a virtual debit card. With auto fill, the process is the same as using a virtual credit card.
If you want a virtual debit card, you should contact your bank to see if you are eligible.
What's the difference between virtual cards and digital cards?
Virtual cards offer added security by being independent of your physical card, often with unique and temporary numbers.
Digital credit cards are digital representations of your physical card. For the purposes of tap to pay, you use the cards in the same way.
Virtual card | Digital credit card | |
|---|---|---|
Definition | A stand-alone, temporary card number generated online, not tied to a physical card | A digital version of a physical credit card stored in a digital wallet |
Purpose | Designed for secure online transactions, often for single-use or specific merchants | Provides convenience and contactless payments for both in-store and online use |
Feature | - No physical counterpart - Customisable limits or single-use numbers - Can be regenerated or deleted as needed | - Tied to a physical card - Shares the same card number as the physical version - Used for recurring payments or tap-to-pay transactions |
Example | Generated by apps like Monza or Revolut for secure shopping | Physical cards from banks like Visa or Mastercard added to Apple Pay or Google Pay |
Personal Finance Expert
Our expert says
“You only need to look at the tills the next time you shop to see that virtual wallets are increasingly becoming part of our culture.
"The main benefits include ease of use and added security, but – while other wearables can also be used – it often leads to more reliance on our handsets. That’s not a problem as long as you have a back-up method of payment, just in case.”
Other useful guides
Looking for a more efficient way to pay? We’ve lots of supporting guides to help out, including:
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