A virtual credit card represents a 16 digit unique number which can be used to process a single transaction, and it remains active for 48 hours. Only online operations can be performed with such virtual cards.
The primary benefit of using such virtual credit cards is that it minimises the risk of fraudulent activity, as all sensitive information stored becomes redundant after 48 hours. A maximum cap on the total amount of transactions processed can be placed as well, thereby minimising the chances of incurring a loss in adverse situations. No additional charges are levied on individuals opting for such benefits.
However, possession of a standard credit card is mandatory for approval of such virtual cards. Standard credit cards have the added benefit of reward points in each transaction processed, which is not available on virtual cards. Massive reward points can be gained through Bajaj Finserv RBL Bank SuperCard, which reduces the overall expenses of cardholders annually.
Virtual credit cards cannot be used for offline transactions as the card has no physical presence. This poses a disadvantage for individuals who use their cards for retail purchases and at various other POS terminals.
However, with the digitisation of India, creditcards in various forms are gaining popularity due to its hassle-free nature and ability to save substantial amounts over time.
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