Virtual credit cards: How they work, their pros and cons and how to get one

If you're a frequent online shopper, you've likely heard of virtual credit cards before and may be curious about how they work.

If you’re a frequent online shopper, you’ve likely heard of virtual credit cards before and may be curious about how they work. In short, virtual credit cards let you shop for purchases without revealing your actual credit card account number. They can be either temporary or permanent. No surprise: They are intended mostly for online purchases.

However, virtual card numbers have some downsides. Keep reading to learn how virtual credit cards work, their pros and cons and how you can get one.

What is a virtual credit card?

A virtual credit card number is essentially a credit card number that works for your account but is different from the number printed on your physical credit card.

In some cases (like with Capital One’s Eno), this virtual number may be created by a third party on the spot and may be changed each time you make a purchase.

Using a virtual credit card can keep your physical credit card information safe when shopping online or over the phone. There are several ways thieves try to steal your personal data, but this short-lived, randomized credit card number — referred to as a “token” — is a way to keep that information safe when making purchases from a distance.

Keep in mind: Virtual credit cards are only available with an existing credit card, so you won’t have to worry about an additional hard inquiry on your credit report or credit score requirements.

How do you use a virtual credit card?

Virtual credit card numbers are linked to an existing credit card account and generated at random to prevent your actual bank account information from being shared online. From a merchant’s point of view, these numbers appear as a regular credit card number.

Depending on the issuer, cardholders may be able to request a virtual card number online through their credit card account. Once a virtual card number is generated, cardholders can access these numbers immediately and request spending caps, among other customizations.

Why should consumers use a virtual card number?

In terms of privacy, virtual credit cards minimize fraud risk by adding an extra layer of enhanced protection for consumers and businesses completing transactions online.

For individual consumers, virtual card numbers not only provide more privacy but also protect private banking information and limit data tracking from advertisers.

For businesses, virtual credit cards make it easier to manage cash flow while also improving fraud protection, controlling vendor payments and safely extending spending power to employees and contractors.

Overall, virtual credit cards are a good option for anyone who shops online and prefers a little bit of extra protection against the possibility of being hacked.

Are virtual credit cards safe?

In short, yes. Credit card issuers that offer virtual credit cards ensure secure protection by assigning a 16-digit number associated with an existing account. Cardholders can even set a PIN (personal identification number).

Most virtual credit card numbers are required to comply with PCI DSS (payment card industry data security standards), which ensures safe transactions between virtual card number owners, the credit card issuer and the merchant receiving payment.

Pros and cons of virtual credit cards

While virtual credit cards can be convenient to use, there are some downsides to consider. Here are the major pros and cons to expect if you use a digital credit card:

Pros

Cons

How do virtual card numbers differ from mobile wallets and payment apps?

The most notable difference between virtual credit cards and mobile wallets (like Google Pay and Apple Pay) is where they are accepted. However, both mobile wallets and virtual card numbers are secure, and there isn’t necessarily one that is better than the other. Here are the most notable differences:

How to get a virtual credit card

With most major issuers, virtual card numbers are available for any credit card they offer, provided you take steps to initiate them on your account.

So, it’s possible virtual card numbers may already be available for your existing credit cards, as well as for any new cards. Explore your online account or app or contact customer service to see how to get access to a virtual number for your card.

Virtual credit cards by issuer

If you’re considering virtual credit card numbers to help keep your account safe, you should know which card issuers and credit cards offer this option. Consider how the following card issuers use virtual credit card numbers and make them available to customers.

The bottom line

Virtual credit cards can hide your real credit card number in order to protect the sensitive details of your account. Depending on your card issuer, your use of virtual card numbers could even be automatic, with no work required on your part.

Keep in mind, however, that using a traditional credit card for purchases isn’t inherently risky, and that’s true whether you’re shopping in person or online. This is due to the fact that credit cards tend to offer zero liability for fraud, so you won’t be on the hook for purchases you didn’t make either way.

Frequently asked questions about virtual credit cards

Can you get instant approval for a virtual credit card number?