By Ezra Ivy
We can now do most of our daily activities using the internet in fractions of seconds without stepping outside our home, including shopping, eating, booking flights, banking, etc. Initially, it was a barter system, then we started transacting in cash, but in the late 1990s, people began using debit cards, credit cards, and prepaid cards.
Credit cards give you access to a bank’s line of credit, whereas debit cards deduct money directly from your bank account. You can also take online loans with your credit card.
It is easy to get personal loans online with a credit card; you cannot do that with your debit card. Compared to debit cards linked to a bank account, credit cards provide better consumer protection against fraud.
And now we are using electronic cards. Using cards simplifies the entire transaction process because money is transferred from one account to another with a sweeping motion. Besides that, with the “buy now, pay later” concept, credit cards made it easier to buy things we couldn’t afford all at once. It is feasible to take a personal loan online against your credit card.
Your transactions are secure because banks and other payment gateways secure online transactions at their end. But even so, when you use your credit card or internet banking details for online transactions, your sensitive information is exposed, leading to fraud. As a result, most banks and non-banking financial companies (NBFCs) have launched Digital credit cards to protect their customers’ information from such risks.
Electronic credit cards are only available online instead of traditional physical credit cards. However, you can use them to conduct online transactions. These digital credit cards are simply an extension of your plastic cards that you can use for online transactions. A digital credit card has the same information as a physical credit card: a credit card number, CVV, expiration date, and validity date.
You can apply for a virtual credit card online, establish a credit limit, use it for online transactions, and pay your bills online. Many well-known credit card issuers now provide digital credit cards (VCCs) to improve security throughout a customer’s credit card usage. However, these cards are only valid for a limited time in most cases. But unlike traditional credit cards, you cannot take a personal loan online with an online app loan with digital credit cards.
The Perks of an Online Credit Card
Because the card is only available for online transactions for a limited time, the risk of theft reduces.
Virtual credit cards have a default transaction limit that you can adjust online to meet your specific needs.
All transactions are secure because of the One-Time-Password (OTP) you must enter when using the card; it provides additional security. You will receive the OTP on your registered mobile number and email address when you complete the transaction.
Besides getting an online loan from the best loan app, you can do everything with your virtual credit card.
Who knows, you might be able to take loans on a virtual credit card one day.
