VCC

What is a virtual credit card (VCC)?

A virtual credit card (VCC) is a digital version of a physical credit card used to make online payments. These cards are designed to provide an additional layer of security in transactions, as they generate a temporary, unique card number for each purchase or for a specific set of transactions, minimizing the risk of fraud.

Virtual cards must be preloaded with funds before use. They usually have a predefined spending limit, making them a very secure payment method. Stored on a mobile device, they are extremely easy for customers to use and can be used both for online purchases and in physical stores.

Characteristics of virtual credit cards

• Temporary number: VCCs generate a card number with a limited validity period. It can only be used for a specific period or for a single transaction.

• Enhanced security: Because the virtual card number is different from the physical card number, the risk of card cloning or unauthorized use is significantly reduced.

• Custom configuration: Some VCCs allow users to set spending limits, restrict usage to certain merchants, or specify validity periods.

• Convenience: They make online purchases easier while protecting the information of the physical card.

Which sectors use virtual credit cards?

Traditionally, they were used by travel agencies to pay for airline or hotel purchases, but today they are also commonly used in ecommerce.