Guide to Digital Credit Cards in India, Secure Your Online Payments

A digital credit card or a virtual credit card, is a credit card that exists only in digital form. It is not a physical card that you can hold in your hand, but rather a set of numbers and other information that you can use to make online or in-store purchases.

How does a digital or virtual credit card works?

A digital credit card works by generating a unique card number, expiration date, and CVV code that is linked to your physical credit card. This number can be used to make online or in-store purchases, but it cannot be used to withdraw cash from an ATM.

When you make a purchase with a digital credit card, the merchant will not see your actual credit card number. Instead, they will see the unique number that was generated for that specific transaction. This helps to protect your financial information in the event of a security breach.

Basically, an operational number is randomly generated with a computer algorithm, quite similar to how modern EMV chip cards work for card-present purchases. Once the number is generated, it can be used to make online purchases in a similar way just as any regular credit card. 

Here are the steps on how a digital credit card works:

1. You apply for a digital credit card through your credit card issuer.
2. The issuer generates a unique card number, expiration date, and CVV code for you.
3. You can access these details online or through your credit card issuer’s mobile app.
4. When you make a purchase, you enter the unique card number and other details into the merchant’s checkout form.
5. The merchant processes the payment and your credit card issuer is notified.
6. The issuer charges your physical credit card for the purchase.

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Are virtual credit cards safe to use?

Digital credit cards can be a convenient and secure way to make online or in-store purchases. If you are looking for a way to protect your financial information and make your life easier, then a digital credit card may be a good option for you.

Here are some of the benefits of using a digital credit card:

• Increased security: Because digital credit cards do not have a physical form, they are less likely to be lost or stolen. Additionally, many digital credit cards offer one-time use numbers, which means that your card number can only be used for a single transaction. This helps to protect your financial information in the event of a security breach.
• Convenience: Digital credit cards can be easily accessed from any device with an internet connection. This means that you can make purchases online or in-store without having to carry your physical credit card with you.
• Flexibility: Many digital credit cards offer a variety of features, such as the ability to set spending limits and track your spending habits. This can help you to budget your money and stay on track with your financial goals.

How do i get a virtual credit card?

There are many banks or other providers from where you can get your digital credit card. Some of the ways to get a digital credit card in India are here:

• Through your credit card issuer: Many credit card issuers in India now offer digital credit cards as an add-on to their regular credit cards. To apply for a digital credit card through your issuer, you will need to have a regular credit card with them and meet their eligibility criteria.
• Through a mobile app: There are a number of mobile apps that allow you to create digital credit cards. These apps typically require you to link your bank account or credit card to the app and then generate a unique card number, expiration date, and CVV code for you.
• Through a third-party service: There are a number of third-party services that offer digital credit cards. These services typically charge a fee for their services, but they may offer a wider range of features than the options offered by credit card issuers or mobile apps.

Here are some of the banks in India that offer digital credit cards:

• Axis Bank: Axis Bank offers a digital credit card called Axis eshop. This card can be used for online purchases and has a number of features, such as the ability to set spending limits and track your spending habits.
• ICICI Bank: ICICI Bank offers a digital credit card called ICICI Pockets. This card can be used for online purchases and in-store purchases at select merchants.
• Standard Chartered Bank: Standard Chartered Bank offers a digital credit card called DigiCard. This card can be used for online purchases and in-store purchases at select merchants.
• HDFC Bank: HDFC Bank offers a digital credit card called HDFC e-Card. This card can be used for online purchases and in-store purchases at select merchants.

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