Written By Virtual Credit Cards Unveiled: A Smart for Secure Transactions
What are virtual credit cards?
Virtual credit cards are unique credit card numbers that allow you to transact on your main credit card account without exposing your account number to data breaches or fraud. A virtual credit card allows you to limit a credit card number for use at a single merchant, set a spending limit or expiration date, or cancel it at any time. You can request a virtual card number online from your credit card issuer, if they offer this feature, or use a third-party app or browser extension that generates virtual card numbers for you.
How do virtual credit cards work?
When you use a virtual credit card, you are essentially creating a temporary alias for your real credit card number. The virtual card number is linked to your main credit card account, but it does not reveal any of your personal or financial information to the merchant or the website. The virtual card number acts as a proxy that authorizes the payment and charges it to your main account. You can use a virtual card number for one-time or recurring purchases, subscriptions, or online services. You can also customize the virtual card number according to your preferences and needs. For example, you can:
- Set a spending limit or expiration date for the virtual card number, so that it can only be used for a certain amount or period of time.
- Restrict the virtual card number for use at a specific merchant or website, so that it cannot be used elsewhere.
- Cancel or delete the virtual card number at any time, if you no longer need it or suspect fraud.
Why use virtual credit cards?
Virtual credit cards offer several benefits for online shoppers and anyone concerned about transaction security. Some of the advantages of using virtual credit cards are:
- They protect your main credit card number from being exposed or stolen in case of a data breach or an insecure internet connection. If a hacker or a fraudster gets hold of your virtual card number, they cannot use it to access your main account or make unauthorized purchases.
- They prevent unauthorized or unwanted charges from recurring or subscription-based services. If you sign up for a free trial or a service that requires a credit card number, you can use a virtual card number that expires after a certain period or has a low spending limit. This way, you can avoid being charged for something you did not intend to buy or renew.
- They help you manage your spending and budgeting. By using virtual card numbers for different categories of purchases, such as groceries, entertainment, or travel, you can easily track and control your spending habits. You can also use virtual card numbers to take advantage of discounts, rewards, or cash back offers from different credit cards, without having to carry multiple physical cards.
Best virtual credit cards for 2023
Several of the largest credit card issuers offer virtual card numbers for cardholders, and some newer cards are innovating with the technology too, making virtual cards more accessible and flexible. Here are some of the best virtual credit cards for 2023, based on their features, rewards, and fees.
| Card Name | Issuer | Features | Rewards | Annual Fee |
|---|---|---|---|---|
| American Express® Gold Card | American Express | Instant access after approval, virtual card numbers through Google Chrome, up to $120 dining credit and Uber Cash annually, baggage insurance plan, no foreign transaction fee | 4X points at restaurants and U.S. supermarkets, 3X points on flights booked directly with airlines or on amextravel.com, 1X points on all other purchases, 60,000 points welcome bonus | $250 |
| Capital One Venture X Rewards Credit Card | Capital One | Instant access after approval, virtual card numbers through Eno app or browser extension, $300 annual travel credit, Priority Pass Select membership, Global Entry or TSA PreCheck credit, no foreign transaction fee | 10X miles on hotels and car rentals booked through Capital One Travel, 5X miles on flights booked through Capital One Travel, 2X miles on all other purchases, 100,000 miles welcome bonus | $395 |
| Citi Double Cash Card® | Citi | Virtual account numbers through Citi app or website, 0% intro APR for 18 months on balance transfers, no annual fee | 2% cash back on every purchase (1% when you buy, 1% when you pay) | $0 |
| Blue Cash Preferred® Card from American Express | American Express | Instant access after approval, virtual card numbers through Google Chrome, 0% intro APR for 12 months on purchases, no foreign transaction fee | 6% cash back at U.S. supermarkets (up to $6,000 per year, then 1%), 6% cash back on select U.S. streaming subscriptions, 3% cash back at U.S. gas stations and on transit, 1% cash back on all other purchases, $300 statement credit welcome bonus | $0 intro annual fee for the first year, then $95 |
| Capital One Savor Cash Rewards Credit Card | Capital One | Instant access after approval, virtual card numbers through Eno app or browser extension, no foreign transaction fee | 4% cash back on dining and entertainment, 3% cash back at grocery stores, 1% cash back on all other purchases, $300 cash bonus welcome bonus | $95 |
Conclusion
Virtual credit cards are a smart strategy for secure transactions, especially for online shoppers and anyone concerned about transaction security. They offer a convenient and flexible way to protect your main credit card number from fraud and data breaches, prevent unwanted charges from recurring or subscription-based services, and manage your spending and budgeting. You can choose from a variety of virtual credit cards that suit your needs and preferences, and enjoy the benefits of rewards, discounts, and fees. Virtual credit cards are the future of online shopping, and you can start using them today.
