The most recent survey conducted last year shows the number of credit card users ranging around 48.9 million, a rapid jump from previous year’s 38.6 million. With an increase in the number of credit card users, concerns over security threats have risen too. Financial institutions offering credit cards have not only upgraded their security measures but have also introduced alternate methods of using credit cards.
One of the stalwart developments has been the introduction of virtual credit cards in India. These cards are issued against or as an alternative to physical credit cards. These cards come with unique 16 digit identification numbers along with CVV numbers and are issued for a short period of time. Users can utilise these cards for any online transaction over the pre-specified period of time.
While the Bajaj Finserv RBL Bank SuperCard and its likes offer numerous advantages over such virtual counterparts, it is vital for every user to understand the specific benefits of these credit cards as well.
Effective ways to overcome virtual credit card problems
Issuing a virtual credit card can require the prospective user to meet certain charges, depending on the financial institution issuing the card. It is important for potential users to check all related charges to activate the card so that they have an understanding of their total expenditures. Users should also check the charges required for the extension of their virtual credit card, in case they need to extend its term. Note that such options are not available from all financers.
Refund and verification complications
There are numerous reasons why credit cards are better than debit cards, be it virtual or real. While they offer numerous benefits like reward points and discounts, they allow users to utilise funds offered to them as a credit.
A major issue with virtual cards can be refund and verification complications once these cards have expired. Users should be cautious to complete their transactions before the expiry time to avoid such hassles.
In case an individual uses a virtual credit card to pay for any purchase, a refund might be difficult since these cards are deactivated after a short time. In such cases, customers have to avail the option of a refund to another account. This also means that their credit card limit will be used up with the purchase and they will have to clear it with the monthly bill.
Short-term financial tool
These cards are short-term financial tools. Consequently, just like considering how to choose the right credit card for oneself, users must plan properly when they activate their virtual cards especially if they are issuing one during their travels. Additionally, customers must also be cautious in setting up the credit limit according to their expected expenditure.
Virtual credit cards with their unique ID number and CVV have restricted use since they cannot be used by swiping. Users of these cards must avail online purchase options. In case they go out shopping, it is best to carry the original credit card.
Handling the issues which might come up with such virtual cards can be easy. Physical credit cards can also be applied for just as easily, they offer a larger range of features in comparison to their physical counterparts.
Users of virtual credit cards and conventional ones should keep a few things in mind. It is imperative that the bills are cleared on time to avoid any penalty charges. Users should also look for different methods on how to reduce their credit card interest and save money.