Pros and Cons of Virtual Credit Cards - Experian

Don't enter personal info like your SSN, email or phone number

Don't enter personal info like your SSN, email or phone number

See your latest credit information

Get to know your FICO ® Score

Raise your credit scores instantly

Establish and build your credit

Credit support

Credit advice

Most popular

Credit reports

Credit scores

Improving credit

Establishing credit

Experian ® Boost

Boost your credit by paying rent

Pay rent online? Now it could raise your credit scores instantly.

ID monitoring, alerts and protection

Scan for your SSN, phone and email

Find your info on people finder sites

Identity Theft support

Identity Theft Advice

Most popular

Identity theft and fraud

Cybersecurity

Privacy

PRIVACY SCAN

Is your personal info at risk?

See if your address, email and more are exposed on people finder sites.

Check out Experian Smart Money™

We’ll negotiate bills for you & cancel unwanted subscriptions

Money advice

Most popular

Digital checking account

Save money on bills

NEW! EXPERIAN SMART MONEY™

Build credit without the debt Ø

Try a digital checking account designed by credit experts—with no monthly fees. ¶

Banking services provided by Community Federal Savings Bank, Member FDIC. Experian is not a bank.

Credit Card advice

Most popular

Balance transfer

Cash back

For bad credit

For fair credit

For students

APR

Rewards

New to credit

Credit cards

Get matched before you apply

We’ll find the best credit cards for you based on your credit profile.

Loan advice

Most popular

Debt consolidation

Personal

PERSONAL LOANS

Find the right loan for you

Compare personal loan offers matched to your credit profile.

Compare, switch and save

Auto Insurance advice

Most popular

AUTO BENEFITS

Get all the facts about your car

View your car’s estimated value, history, recalls and more—all free.

Pros and Cons of Virtual Credit Cards

Quick Answer

The benefits of virtual credit cards include greater security and easier online shopping, while the drawbacks include the lack of widespread availability of virtual credit cards.

At Experian, one of our priorities is consumer credit and finance education. This post may contain links and references to one or more of our partners, but we provide an objective view to help you make the best decisions. For more information, see our Editorial Policy .

In this article:

Virtual credit cards offer features that add protection and convenience, but they might not be the right fit for you especially if you don't shop online often or if you prefer to use your smartphone for online transactions. Read on to learn the pros and cons of virtual credit cards, and whether they're something you should consider.

What Is a Virtual Credit Card?

A virtual credit card is a digital, one-time card number that differs from the number on your credit card and can help protect your account from fraudsters. Virtual credit cards often are used for online purchases.

The 16-digit number for a virtual credit card is connected to your account, but is not the same as the number on your physical credit card. Additionally, the security code and expiration date for a virtual credit card differ from the security code and expiration date on your physical credit card. A virtual card might even come with a different credit limit.

A virtual credit card typically can be used only online. In some cases, you might need a special app, special browser extension or another tech tool to take advantage of a virtual card number. You may also need to use it with your laptop or desktop computer rather than a mobile device.

Otherwise, virtual credit cards are pretty much the same as their traditional counterparts. For example, virtual card transactions pop up on your monthly statement just like physical card transactions do.

Compare top credit cards matched for you

1 Sign up for free

See your current credit card offers based on your credit profile.

2 Choose the card for you

From cash back rewards to a low intro APR, compare your options.

3 Apply with confidence

Apply knowing you’re more likely to qualify with matched offers.

See your offers

How to Get a Virtual Credit Card

You can request a virtual credit card from your card issuer through the issuer's website or app. Keep in mind, though, not every card issuer offers virtual cards.

American Express and Capital One are among the issuers that provide virtual credit cards. Capital One provides a different number each time you ask for one. On the other hand, American Express supplies a virtual card number and provides dynamic security codes every time you use the card.

Benefits of Using Virtual Credit Cards

Not every virtual card works the same, so the features can vary. But here are four benefits you likely can expect from virtual credit cards.

Heightened Security

One of the key benefits of a virtual credit card is that it's much easier to cancel than a physical credit card, potentially keeping your account safer .

When a physical card is lost or stolen, you generally must cancel it and await the arrival of a new card. But when you need to cancel a virtual card number, you normally can do so by logging in to your account and following the card issuer's directions all while still being able to use your physical card.

Additionally, virtual credit cards aren't directly connected to your physical card or your account details, cutting back on the risk of fraud. Still, information from a virtual credit card might be as prone to hacking as information from a physical credit card.

Better Control of Spending

Virtual credit cards can help you keep tabs on spending. That's because some of these cards enable you to set spending limits.

For example, if you give your teen your credit card number to make a purchase online, a virtual card might prevent them from going overboard. Or a business might provide virtual cards with dollar limits to limit employee spending.

Greater Convenience

It seems obvious, but a virtual credit card doesn't require you to keep track of a physical card. So, when you're ready to make a purchase from a merchant that accepts virtual cards, you don't need to scramble to find your physical card.

Ease of Online Purchases

A virtual card might simplify online shopping. For instance, rather than typing out a card number every time you make an online purchase, you may be able to rely on virtual card numbers that autofill the spots where payment information is entered.

Drawbacks of Virtual Credit Cards

Here are four potential drawbacks of virtual credit cards.

Trouble With In-Person Transactions

You can't use a virtual credit card for in-store purchases, such as buying groceries. In addition, a virtual card might not be ideal if you need to verify your identity when you're picking up an online order. Furthermore, a virtual credit card may not work if you need to produce a physical credit card when you're checking into a hotel or renting a car, for example.

Tech Issues

If a virtual credit card is tied to a browser extension, you might need to rely on a laptop or desktop computer to use the virtual card number. Therefore, a mobile device might not be able to accommodate a virtual card number.

On top of that, you simply might be more comfortable with low-tech physical cards than high-tech virtual cards.

Problems With Recurring Transactions

Because a virtual card number is usually temporary, it might not be wise to use one for recurring payments, such as credit card bills. Why? Because the virtual card might expire ahead of the next payment due date.

Lack of Widespread Availability

Traditional credit cards have been around since the 1950s. Virtual credit cards, on the other hand, are newer innovations. Some credit card issuers do not currently offer them.

How to Decide if Virtual Cards Are Right for You

Even though a virtual card isn't a permanent replacement for a physical card, it still may be a good idea to use one as protection from fraud or as an emergency backup in case you lose track of a physical card.

Here are four questions you should ask to decide if virtual cards are right for you:

The Bottom Line

Virtual credit cards enable account holders to tap into the digital capabilities of payment technology, offering potential benefits such as enhanced security. However, virtual cards might not be right for everybody, like someone who does a lot of shopping at brick-and-mortar stores. Knowing your shopping habits can help you make the best choice for your situation.

Don't Apply Blindly

Apply for credit cards confidently with personalized offers based on your credit profile. Get started with your FICO ® Score for free.

Resources

Latest Research

Latest Reviews

Credit

Personal finance

Support

Experian's Diversity, Equity and Inclusion

Data privacy

To view important disclosures about the Experian Smart Money™ Digital Checking Account & Debit Card, visit experian.com/legal .

The Experian Smart Money™ Debit Card is issued by Community Federal Savings Bank (CFSB), pursuant to a license from Mastercard International. Banking services provided by CFSB, Member FDIC. Experian is a Program Manager, not a bank.

Editorial Policy: The information contained in Ask Experian is for educational purposes only and is not legal advice. You should consult your own attorney or seek specific advice from a legal professional regarding any legal issues. Please understand that Experian policies change over time. Posts reflect Experian policy at the time of writing. While maintained for your information, archived posts may not reflect current Experian policy.

Opinions expressed here are author's alone, not those of any bank, credit card issuer or other company, and have not been reviewed, approved or otherwise endorsed by any of these entities, unless sponsorship is explicitly indicated. All information, including rates and fees, are accurate as of the date of publication and are updated as provided by our partners. Some of the offers on this page may not be available through our website.

Offer pros and cons are determined by our editorial team, based on independent research. The banks, lenders, and credit card companies are not responsible for any content posted on this site and do not endorse or guarantee any reviews.

Advertiser Disclosure: The offers that appear on this site are from third party companies ("our partners") from which Experian Consumer Services receives compensation. This compensation may impact how, where, and in what order the products appear on this site. The offers on the site do not represent all available financial services, companies, or products.

*For complete information, see the offer terms and conditions on the issuer or partner's website. Once you click apply you will be directed to the issuer or partner's website where you may review the terms and conditions of the offer before applying. We show a summary, not the full legal terms – and before applying you should understand the full terms of the offer as stated by the issuer or partner itself. While Experian Consumer Services uses reasonable efforts to present the most accurate information, all offer information is presented without warranty.

© 2024 All rights reserved. Experian. Experian and the Experian trademarks used herein are trademarks or registered trademarks of Experian and its affiliates. The use of any other trade name, copyright, or trademark is for identification and reference purposes only and does not imply any association with the copyright or trademark holder of their product or brand. Other product and company names mentioned herein are the property of their respective owners. Licenses and Disclosures .

Credit Cards Matched to You

Browse personalized credit offers based on your FICO ® Score.

• Pros and Cons of Virtual Credit Cards
  What are the benefits of virtual cards? · 1. Virtual cards are instantly available · 2. Protect your main card details · 3. Split expenses across ...
• What is a Virtual Credit Card? Benefits and Limitations
  Benefits of Virtual Cards · Convenience and ease of use · Increased security and fraud protection · Capability to set spending limits and ...
• What Are The Benefits Of Virtual Cards? Digital Wallets For ...
  Using a virtual card for online shopping has many benefits, like an easier, more secure checkout. Read more.
• 4 benefits of virtual cards for business owners
  Benefits of Using Virtual Credit Cards · Heightened Security · Better Control of Spending · Greater Convenience · Ease of Online Purchases.
• What is a Virtual Cards: How They Work and Benefits
  Virtual cards are a type of credit or debit card that are generated and stored electronically. They can be used to make online and offline payments without the ...
• Virtual cards explained: Benefits & use cases for businesses
  Improved accountability. Another virtual debit card benefit is the improved oversight and accountability you receive over your business' money.
• Virtual Debit Card: Meaning, Benefits, Limitations & Top ...
  Virtual cards give employees instant access to a payment method so they can pay invoices or make purchases faster. This enables employees to buy whatever they ...
• Virtual Cards & Their Benefits: What is a Virtual Card?
  The Wise virtual card lets you spend using the real exchange rate online, in-store and while you travel - but exists only in your Wise account.
• Virtual Business Credit Cards For Corporate Spending
  Virtual cards offer a convenient, secure, and flexible payment solution for online transactions, giving users peace of mind while seamlessly conducting digital ...
• Virtual Credit Card Benefits for B2B Buyers and Sellers
  Virtual card numbers allow businesses to improve fraud protection, control vendor payments, align on business spending and goals, and can enable ...