What is a Virtual Debit Card? Everything You Need to Know!

The virtual debit card is a clever invention that allows you to perform all your card transactions online, eliminating the need to carry around an actual card. Are you curious about how to use virtual debit cards? Do you want to know about the types of virtual debit cards and their benefits? If yes, you are in luck! This post explores all this and more!

What is a Virtual Debit Card?

The meaning of a virtual debit card is that it is a digital version of your physical debit card, delivered by your bank via a mobile banking app. It has the same information as your physical card and may be used to make transactions, shop online, and more.

Like your regular card, it can only be used in establishments that accept chip and card swipes. However, a virtual debit card is extremely useful if you are concerned about losing or destroying your card or want to keep it safe from possible offenders.

How Do Virtual Cards Work?

Virtual debit cards function just like the physical ones, with a secret PIN and an OTP to confirm payment. The only contrast is that you don't have to carry them around as they are accessible on your phone.

Are There Different Types of Virtual Debit Cards?

There are 2 types of virtual debit cards, dependent on how many times they may be used. They are as follows:

1. Single Use Card

   This one can only be used once and expires after 48 hours or one transaction, whichever comes first. It's ideal for safe e-commerce transactions. You must authenticate the OTP given to your registered cellphone number to use it.

2. Multiple Use Card

   In most circumstances, you may access it from your phone using your bank's mobile app. This is helpful if you need to purchase before your physical card arrives. These cards can be activated instantaneously, and the limit is generally adjustable.

What are the Benefits of Virtual Debit Card?

A virtual debit card is a smart and convenient choice for anyone looking to simplify their finances and stay protected online. Here’s how:

• Quick Activation

  Unlike the tedious and lengthy process of acquiring conventional debit cards, virtual debit cards can be easily obtained. Finish the OTP-based e-KYC authentication process in the mobile banking app, and your card will be authorised immediately. There's no muss, no hassle, and no waiting.

• Safety

  Many people doubt - is virtual debit card safe! Well, it is incredibly safe since it protects your money with a mobile app password and a digital platform. Virtual debit cards, unlike regular debit cards, cannot be stolen, lost, or copied. And if anything suspicious occurs, it may be disabled immediately to prevent unauthorised usage.

• Perks & Benefits

  Whether you do online shopping, pay bills, or conduct other online transactions – you can enjoy various benefits of virtual debit cards in terms of perks, cash back, discounts, and reward points. You can even use your virtual debit card to make payments on government-supported payment platforms.

• Blocking is Possible Anytime

  If you feel someone is misusing your virtual debit card, you can immediately block it by entering into the mobile app and selecting the block option. There is no need to call the bank or customer support centre, as with a physical card.

How to Get Virtual Debit Cards?

Obtaining a virtual debit card is simple. You only need to follow the instructions outlined below. Remember that some of them may differ depending on your bank.

• Install your bank's mobile app and sign in using your credentials.
• Navigate to the 'Cards' area and then to the 'Virtual Debit Cards' option.
• Select the 'Register New Virtual Debit Card' option.
• Select the account to which you wish to attach the card.
• Select the type of card you want from the available options.
• Choose the card's validity date and month if your bank permits it.
• Check the box for confirmation.
• Finally, to obtain your virtual debit card, enter your transaction PIN.

Learn more about - Freo's Digital Savings Account.

How to Use Virtual Debit Card?

Using a virtual debit card is simple. You may use it for internet purchases, phone purchases, app purchases, and anywhere else that takes a 16-digit virtual card number. Simply input your virtual card details and let the payment processor do the rest.

FAQs

1. Is a fee required to get a virtual debit card?

It is determined by the bank or financial institution issuing the virtual debit card. Some may require a fee, while others may provide it free.

2. Is a virtual debit card safe?

Virtual debit cards incorporate characteristics like a CVV number, a 16-digit card number, the cardholder’s name, expiration date, and other identifying information. These credentials are only available to the user via the mobile banking app, making unauthorised persons unable to access or use the card. As a result, virtual debit cards are often regarded as safe for online transactions.

3. How can I obtain a virtual debit card?

Virtual debit cards may be obtained by opening a bank account or NBFC account. You can apply for them using the bank’s website or mobile app or by personally contacting the bank.

4. Is limiting the number of transactions on a virtual debit card feasible?

Yes, you may generally establish a transaction limit on a virtual debit card.

5. Is it practical to put a stop to my virtual debit card?

If you feel that your virtual debit card has been used oddly or unauthorised, you can immediately disable the card using the mobile banking app.

6. Is there a CVV on a virtual debit card?

Yes, a virtual debit card has a CVV and includes a PIN and an expiration date.

7. Is it possible to use a virtual debit card without a smartphone?

No. A virtual debit card cannot be used without a smartphone. You must first download the app from your bank’s website to use your bank’s virtual debit card.