VIRTUAL CREDIT CARDS: How it Works & Best 2023 Providers

Virtual credit cards are a relatively new and increasingly popular form of payment that offers a high degree of security and convenience to consumers. These cards are also known as disposable or temporary credit cards. They are similar to traditional credit cards in that they allow you to make purchases online or over the phone. However, virtual credit cards differ in several important ways. Therefore understanding how they work can help you decide whether they are the right choice for you. In this article, we’ll discuss free virtual credit cards, some Chase options, and instant cards.

What is Virtual Credit Cards

A virtual credit card is a unique credit card number that is generated specifically for a single transaction or a limited number of transactions. This number is linked to your existing credit card account, but it is separate from your physical credit card. It also does not contain any of your personal information, such as your name, address, or social security number.

When you use a virtual credit card to make a purchase, the transaction is processed in the same way as a traditional credit card transaction. However, because the virtual card number is only valid for a limited time, fraudsters or hackers cannot make unauthorized purchases.

How Does a Virtual Credit Card Work?

To use a virtual credit card, you must first sign up for a virtual credit card service. These services are typically offered by credit card companies and banks. Although there are also third-party providers that specialize in virtual credit cards.

Once you have signed up for a virtual credit card service, you can generate a virtual credit card number for each transaction or use a single virtual credit card number for multiple transactions. To generate a virtual credit card number, you will typically need to provide the following information:

The amount of the transaction
The expiration date of the virtual credit card number
The name of the merchant or vendor
Any other relevant details, such as the type of purchase or the shipping address

Once you have generated a virtual credit card number, you can use it to make a purchase online or over the phone, just like you would with a traditional credit card. The transaction will be processed in the same way, and the purchase will be charged to your existing credit card account.

Free Virtual Credit Cards

While some virtual credit card services may offer a free trial period, there are typically fees associated with using virtual credit cards. These fees may include transaction fees, monthly fees, or other charges, depending on the provider. Some credit card companies may offer virtual credit cards as a feature of their regular credit card products, and there may be no additional fees associated with using them. However, it’s important to read the terms and conditions carefully to understand any potential fees or limitations. Some of the best virtual credit card providers that offer free services include:

#1. Capital One Eno

Capital One Eno is a virtual credit card service that offers a free browser extension that generates virtual card numbers for online purchases. The service is available to Capital One credit card customers. It also offers advanced security features like transaction alerts and the ability to lock or unlock your virtual card.

#2. Privacy.com

Privacy.com is a virtual credit card provider that offers a free basic plan with access to virtual card numbers for online purchases. The service offers a range of security features, including the ability to set spending limits and block recurring payments.

#3. Ramp

Ramp offers unlimited free virtual and physical credit cards, automatic controls and approvals, and clever accounting linkages. The cards offer a flat 1.5% reward rate forever.

Ramp offers distinctive features like automatic HRIS sync, receipt capture, and bill payment that help you organize your finances. It has direct integrations with Sage Intacct, Xero, NetSuite, and QBO. You may manage your spending using Ramp before it happens.

#4. Citibank Virtual Account Numbers

Citibank offers a virtual credit card service that generates virtual account numbers for online purchases. The service is available to Citibank credit card customers and is free to use.

#5. US Unlocked

Using our virtual payment cards with U.S. billing and shipping addresses, US Unlocked will enable you to shop U.S. websites from anywhere in the globe. Anyone looking to acquire a US subscription, such as US Netflix, Hulu, Disney+, etc., will appreciate this payment option.

#6. Bank of America ShopSafe

Bank of America’s ShopSafe is a virtual credit card service that generates temporary card numbers for online purchases. The service is available to Bank of America credit card customers and is free to use.

#7. ePayService

A business called ePayService makes it possible for you to make a secure online payment. It is one of the leading providers of virtual credit cards that enables you to manage your card-based online purchases.

#8. Divvy

Divvy virtual card service is available for online purchases. Your transactions could be made using a 16-digit card number. With this online debit card provider, you can place a cap on each virtual card.

#9. Emburse

A startup called Emburse provides both digital and actual credit cards. It has authorization and approval based on role. By confirming the identity of each transaction’s party, this business protects itself from fraud.

#10. EntroPay

EntroPay is a virtual credit card service that offers a free account with no monthly or annual fees. Users can generate virtual credit card numbers for online purchases and can load their account with funds from their bank account or credit card.

#11. Revolut

Revolut is a digital banking service that offers a free virtual credit card as part of its standard account. Users can generate disposable virtual credit cards for online purchases. You can also use their virtual cards for contactless payments using their mobile devices.

#12. Payoneer

Payoneer is a global payment service that offers a free virtual Mastercard debit card. Users can use their virtual card to make purchases online or in person, and can also withdraw cash at ATMs.

Virtual Credit Cards Chase

Chase Bank offers a virtual credit card service called “Chase Secure Banking,” which generates virtual credit card numbers for online purchases. This service is only available to customers who have a Chase Secure Banking account.

Chase Secure Banking is designed for customers who have had trouble getting approved for traditional bank accounts or who have had issues with overdraft fees in the past. The account comes with a number of features designed to help customers manage their finances, including:

Virtual credit card numbers: Customers can generate temporary virtual credit card numbers for online purchases. This helps protect against fraud and identity theft.
No overdraft fees: Chase Secure Banking accounts don’t allow overdrafts, so customers don’t have to worry about unexpected fees or charges.
Mobile banking: Customers can manage their accounts and make deposits using the Chase Mobile app.
Bill pay: Customers can use the bill pay feature to pay bills online or set up automatic payments.
ATM access: Customers can withdraw cash from ATMs using their Chase Secure Banking debit card.

Instant Virtual Credit Cards

Instant virtual credit cards are virtual credit cards that can be generated and used immediately for online purchases. These types of virtual credit cards are designed to provide users with a quick and easy way to make online purchases without having to wait for a physical card to arrive in the mail.

Some credit card issuers offer instant virtual credit cards as part of their regular credit card products, while others may offer them as a separate service. Some popular credit card issuers that offer instant virtual credit cards include:

American Express: American Express offers instant virtual credit cards for all of its credit card products. Once approved, customers can generate a virtual credit card number and begin using it immediately for online purchases.
Citibank: Citibank offers virtual account numbers that can be used for online purchases. Customers can generate virtual account numbers through their online banking account and use them immediately.
Capital One: Capital One offers virtual credit card numbers that can be used for online purchases. Customers can generate a virtual credit card number through their online banking account and use it immediately.
Discover: Discover offers virtual credit card numbers that can be used for online purchases. Customers can generate a virtual credit card number through their online banking account and use it immediately.

Can you get a virtual credit card?

Yes, it is possible to get a virtual credit card. Many banks, financial institutions, and credit card issuers offer virtual credit cards as a service to their customers. In addition, there are also third-party companies that specialize in providing virtual credit cards.

To get a virtual credit card, you typically need to have a valid credit card account with the issuer or provider. You may also need to provide some additional information, such as your name, billing address, and contact information, to set up the virtual card.

Once your virtual credit card is set up, you can use it to make online purchases just like you would with a physical credit card. The virtual card will typically have a different card number, expiration date, and security code than your physical card to help protect against fraud and identity theft.

While virtual credit cards can be a convenient and secure way to make online purchases, they may have limitations or fees associated with certain transactions or account features. It’s always a good idea to read the terms and conditions carefully before signing up for any virtual credit card service.

Can I create virtual credit card free?

There are some providers that offer free virtual credit cards. But it’s important to note that many of these services may have limitations or restrictions compared to paid services.

Some credit cards issuers, such as Capital One, Discover, and Citibank, offer virtual credit card numbers that can be generated for free by their customers through their online banking accounts. However, these virtual credit cards may only be available for use with a specific credit card account. It may also have restrictions on the types of transactions that can be made with them.

Additionally, there are also third-party companies that offer free virtual credit cards, such as Entropay, but these services may have fees or transaction limits. It’s important to carefully read the terms and conditions of any free virtual credit card service to understand any limitations or fees that may apply.

In summary, it is possible to create a virtual credit card for free through certain providers or services, but it’s important to carefully review the terms and conditions to understand any limitations or restrictions that may apply.

How do I use a virtual credit card?

Using a virtual credit card is similar to using a physical credit card for online purchases. Here are the general steps to use a virtual credit card:

Set up your virtual credit card: This usually involves creating a virtual credit card account with a provider or credit card issuer and generating a virtual credit card number, expiration date, and security code.
Use your virtual credit card details: When you are making an online purchase, enter the virtual credit card number, expiration date, and security code into the payment information fields on the checkout page, just as you would with a physical credit card.
Complete the transaction: Once you have entered the virtual credit card details and confirmed the payment information, submit the payment to complete the transaction.

Some virtual credit card services may also allow you to set spending limits or expiration dates for your virtual credit card, which can help you manage your online spending and protect against fraud.

How do I get cash from my virtual credit card?

It is not possible to get cash directly from a virtual credit card because virtual credit cards are designed for online transactions only. Virtual credit cards do not have a physical presence, such as a plastic card or a magnetic strip, which is required to withdraw cash from an ATM or to make cash advances.

If you need cash, you can consider using a physical credit card, a debit card, or an ATM card to withdraw cash from an ATM machine. However, you should note that cash advances may come with high-interest rates and fees, so it’s important to carefully review the terms and conditions of your credit or debit card before using it for cash withdrawals.

If you have a balance on your virtual credit card that you want to transfer to your bank account, you may be able to use a service such as PayPal or Venmo to transfer the funds. However, these services may also have fees and limitations, so it’s important to carefully review the terms and conditions before using them.

How do fraudsters get credit card details?

There are several ways that fraudsters can obtain credit card details, including:

Phishing: Fraudsters may use phishing emails or text messages to trick victims into providing their credit card information. These messages may look like they come from a legitimate company, such as a bank or retailer, and may ask the victim to provide their credit card number, expiration date, and security code.
Skimming: Fraudsters may use skimming devices to capture credit card information from physical cards. Skimming devices can be attached to ATMs, gas pumps, or other payment terminals, and can read the magnetic stripe on the card when it is swiped.
Hacking: Fraudsters may use hacking techniques to steal credit card information from databases or payment systems. This can include exploiting vulnerabilities in software or using malware to steal data from computer systems.
Social engineering: Fraudsters may use social engineering techniques to trick victims into providing their credit card information. For example, they may pose as a customer service representative and ask the victim to provide their credit card details to “verify” their account.
Physical theft: Fraudsters may physically steal credit cards from wallets, purses, or mailboxes to obtain the card information.

Conclusion

To protect against credit card fraud, it’s important to be cautious when providing credit card information online, to monitor credit card transactions regularly, and to report any suspicious activity to te credit card issuer immediately. It’s also a good idea to use strong and unique passwords for online accounts and to avoid using public Wi-Fi networks for sensitive transactions.