Frauds related to online transactions have become extremely rampant, so much so that customers hesitate to purchase anything online unless the seller is of some repute. However, online transactions cannot be completely stopped as shopping in other countries is mainly possible due to online transactions. This is why most customers, especially the ones who are foraying into online shopping are quite daunted by the process of providing all the details pertaining to their credit card to online merchants. This is because, the details provided online are enough for fraudsters to procure as much money as they desire from the customer’s account. Although customers cannot be held responsible for such charges, it would take a certain amount of time before the amount is reversed back into their account and this would result in the loss of time and money. However, customers need not fret as there is a solution that they can avail of so as to protect themselves from unscrupulous online merchants. The solution is Virtual credit cards.
What are Virtual Credit Cards?
Virtual credit cards are designed primarily for online usage and contain a randomly generated number corresponding to the original credit card. Through the usage of the virtual card, customers can ensure that their card details are not available and misused while shopping with online merchants. It is quite similar to a companion or supplementary credit card. The number on the virtual credit card can be a one time usage as well as multiple times and these numbers are completely different from the one on the original credit card, thereby preventing the scenario where online fraudsters can procure credit card details and misuse it.
This disposable method of payment is very safe and can also be customised. Customers have the option of assigning limits to their virtual card. For example, if their credit card limit is P40,000 then they can assign any limit below this amount to their virtual credit card and thereby regulate their spending. In addition to this, customers may also be allowed to designate an expiry date on their virtual card.
Features of Virtual Credit Cards
- Safety is the most important benefit of a virtual credit card. It is safe for customers to use during online transactions and they will not have to worry about online theft as the number on their virtual credit card differs from the one in their credit card.
- Customers can use it multiple times or one time based on the bank that issues it. Customers also have the option of designating the credit limit and expiry on their virtual card so that they can manage their spends and purchases.
- Not every bank provides virtual credit cards. Although many lenders in the past provided virtual credit cards, it is not so currently, therefore customers will have to make enquiries with their banks to find out if they issue these types of cards or not.
- As the name suggests, these cards are virtual and hence can only be used online. These cards cannot be used in all places that a normal credit card can be used such as in supermarkets or phone orders as there are no magnetic strips or anything as such. However, certain catalog stores may agree to use a virtual credit card, but this is dependent solely on the merchant. Hence, if customers plan to utilise their virtual card details elsewhere then they will have to check with the merchants and shops if it is possible for them to do so.
- Returning items that are purchased through online merchants can be hard if a virtual credit card is used to make the purchase. This is because the card number may not be valid at the time of returns although it was at the time of the purchase. This is why customers need to be careful about their purchases. One way to prevent complications regarding this, is to maintain all receipts carefully.
Customers within the Philippines can procure virtual credit cards from various banks. Two of the top banks that provide virtual credit cards are BDO Unibank and BPI or Bank of the Philippine Islands. BDO Unibank provides virtual credit cards that are easy to procure and are linked to the customers BDO credit card account. Customers can also earn loyalty points on transactions made to their BDO virtual credit cards. BPI also provides virtual credit cards without any additional cost on request while customers procure regular credit cards from BPI. A set limit can be assigned to these virtual cards and thereby customers can manage their spending.
Also Checkout: Prepaid Credit Cards
Customers can avail virtual credit cards from various banks within the Philippines and use it for safe online transactions. These cards protect customers from fraudulent online behavior and customers can also assign limits to them. Although the general features of the card remain the same, customers can procure additional information regarding additional features from various banks.