virtualcard

A virtualcard, or virtual card number, is a digital substitute for a physical payment card generated by a bank or fintech for online transactions. It can be used in place of a real card number to reduce exposure of primary account details and to control how funds are accessed.

How it works: A user generates a temporary card number with an associated expiry date and CVV through a banking app or service. It is funded from the user’s linked card or account. Virtual cards can be single-use or multi-use and may be restricted to a specific merchant or use case. They may be disposable and automatically expire.

Uses and benefits: In online shopping, subscriptions, or trials, a virtualcard offers privacy by keeping actual card details hidden, improves fraud protection, and provides spending controls such as per-transaction limits or merchant caps. If compromised, the card can be canceled without affecting the main account; it also supports management of recurring charges by updating to a new number.

Considerations: Acceptance varies by merchant and region; some merchants may not support virtual cards or recurring payments. Refunds may be issued to the virtual number or require updating. Not all banks issue virtual cards, and fees or limits may apply. The approach relies on card networks’ tokenization and PCI DSS compliance.

Market and regulation: Virtualcards are offered by many banks and fintechs. They align with data security practices and consumer protection regimes; users should monitor terms and ensure their device is secure.