Guide to Virtual Cards: Benefits, Types, Top Picks & more

There are mainly 2 types of virtual cards available for the consumers – virtual credit cards and virtual debit cards.

Virtual Credit Cards

Like physical credit cards, virtual credit cards also come with a predefined credit limit and can be used for online payments. If issued on the RuPay network, they can also be used for UPI transactions, similar to any RuPay credit card. Some virtual credit cards are standalone products, while others are issued as additional cards linked to your existing physical credit card.

For example, HDFC UPI Rupay Credit Card is offered as a separate card whereas the Rupay variant of YES Bank Paisabazaar PaisaSave Credit Card is offered as an additional virtual card.

Virtual Credit Card	Annual Fee	Key Feature
HDFC UPI RuPay Credit Card	Rs. 99	Up to 3% CashPoints on card spends Gift voucher of Rs. 250 as joining bonus
YES Bank PaisaSave RuPay Credit Card	Rs. 499	1.5% cashback on UPI spends
HDFC Pixel Play Credit Card	Rs. 500	Up to 5% cashback on card spends Up to 25% off on dining via Swiggy Dineout
AU SPONT Credit Card	Rs. 299	1% cashback on card spends Up to 8 railway & domestic airport lounge visits each per year
AU InstaPay Credit Card	Nil	1% cashback on UPI spends across dining, departmental stores, grocery, pharmacy & supermarkets

Virtual Debit Cards

Virtual debit cards can be used for online transactions by filling in the required card details and the payment amount is deducted directly from the bank account, similar to a physical debit card. Here is the list of some of the virtual debits cards in India:

Virtual Card Provider	Virtual Debit Card	Annual Fee
Bank of Baroda	BOB Virtual Debit Card (Visa Classic/ Platinum & RuPay Platinum)	Nil
Kotak Mahindra Bank	Kotak 811 Virtual Debit Card	Nil
Punjab National Bank	PNB Virtual Debit Card (through PNB ONE)	Nil
Indian Post Payments Bank	IPPB Virtual Debit Card	Rs. 25

Using virtual cards for your payments comes with several advantages. Here are some key benefits you can avail:

Hassle-free Digital Payments: You can easily access your virtual card details using your mobile phone through online banking or wallet apps for quick online purchases and bill payments. Virtual cards let you carry out quick and contactless online transactions without the hassle of carrying a physical card or swiping it to make any payment.

Instant Issuance: Most card issuers offer instant virtual card issuance, unlike regular cards, which may take several days to reach you. You can quickly generate, activate and manage your virtual cards through user-friendly digital interfaces.

Enhanced Online Security: Since these are not available in physical form, virtual cards are comparatively more secure from physical theft. Many virtual cards also offer the option of using a masked or temporary card number to protect your account details from any potential online frauds and threats.

Rewards on Spends: You can earn rewards or cashback and even avail other offers on leading brands and platforms on virtual card spends, basis card features and eligibility. For example, UPI transactions made through YES Bank Paisabazaar PaisaSave Credit Card earn 1.5% cashback. Similarly, if a merchant is running an offer on HDFC Bank Credit Cards, it will likely be applicable on HDFC UPI Rupay Virtual Card as well.

Low Annual Fee: Virtual cards are generally either lifetime free or come with a low annual fee.

Listed below are the key differences between virtual cards and regular physical cards:

Parameters	Virtual Cards	Regular Cards
Physical Form	No	Yes
Primary Use	Online and UPI spends	Online and offline spends
Security Focus	Masking primary card details for online use	PIN for POS spends
Convenience	Easy access via digital devices for online use	Requires carrying the physical card for offline use
Annual Charges	No or low annual fee	Can range from being lifetime free to very high fee for premium cards

Virtual cards function in a similar manner as regular physical cards, but only for online or UPI payments.

For Online Payments

Step 1: Select the card payment method during the online checkout and payment process.
Step 2: Enter your virtual card details like card number, CVV and expiration date, as displayed on the card issuer platform.
Step 3: Complete the transaction which may require you to enter an OTP sent to the registered mobile number for added security.

For UPI Payments

All virtual debit cards can be linked to any UPI platform of choice and be used to make the payments. However, only virtual credit cards on RuPay network can be used for UPI payments by adding them to the UPI platforms.

What are the charges for a virtual credit card?
Typically, banks offer virtual credit cards either lifetime free or at a nominal fee. However, it’s best to check with the card issuer for such charges.

Can I use a virtual credit card for international transactions?
Yes, in most cases, virtual credit cards can be used for international online transactions, provided your primary credit card allows international usage.

What happens if a transaction with my virtual card fails?
If a transaction fails, check your internet connection, ensure you have entered the correct virtual card details, and verify that you have not exceeded any spending limits you might have set. If the issue persists, contact your bank.

Can I set spending limits on my virtual credit card?
Yes, many banks allow you to set custom spending limits for each virtual card generated, providing better control over your online expenses.