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Quiz: Credit vs Debit Cards
Credit card or debit card – do you know which to use and when? Test your knowledge of how each one works with this short, practical quiz.
We’ve talked about credit cards before, but recently I heard about a virtual credit card. What is that?
A virtual credit card is a temporary or disposable card number associated with your existing credit card account, and does not come with a physical card. Virtual credit cards are also known as virtual account numbers, and are used to make online transactions more secure.
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How does a virtual card make online purchases safer?
When you use a virtual credit card, the merchant you are paying to never gets to know your actual credit card number, so your original card stays protected. You can also set a maximum charge limit and a short expiry date for most virtual credit cards to further reduce the chances of fraud.
How does a virtual credit card work?
For all practical purposes, a virtual credit card works exactly like a regular credit card. While making an online purchase, you just provide the virtual credit card number instead of the regular credit card number. The charge would appear on your monthly statement just like any regular purchase, and you would also continue to earn rewards for your purchases.
Can a refund be issued if I have used a virtual credit card for the original purchase?
Of course! In this case, the refund amount would go back to your original credit card.
Are there any limitations to virtual credit cards?
Yes – a major limitation is that they can only be used online. Since there is no physical card, they cannot be used at any retail location that requires swiping of the physical card.
How much does a virtual credit card cost?
Most banks offer this service totally free to their card holders.
How can I get a virtual credit card?
You just need to log on to your bank’s website or mobile app to create a virtual credit card. You can also use one of the third-party services that offer virtual credit cards based on your existing cards.
Podcast: What is a Virtual Credit Card
Fun, informative and concise episodes by a 16-year old, breaking down complex financial concepts in a way that kids and beginners can understand. Episodes cover personal finance topics like saving, investing, banking, credit cards, insurance, real estate, mortgage, retirement planning, 401k, stocks, bonds, income tax, and more, and are in the form of a conversation between a cowboy (a finance novice) and his friend, a stock broker. Making finance your friend, only at Easy Peasy Finance.
A little bit about me: I have been fascinated with the world of personal finance since I was 6! I love to read personal finance books, and keep myself updated on the latest by reading various personal finance magazines. My friends often ask me questions about finance because they find it complex and intimidating. That’s what inspired me to start my YouTube channel called Easy Peasy Finance when I was 8, and this podcast 2 years later.
Everything you need to know about Virtual Credit Cards: What is a Virtual Credit Card, How does a virtual card make online purchases safer, How does a virtual credit card work, Can a refund be issued if you have used a virtual credit card for the original purchase, Are there any limitations to virtual credit cards, How much does a virtual credit card cost, How can you get a virtual credit card, and more.
Show notes and transcript at: https://www.easypeasyfinance.com/what-is-a-virtual-credit-card/
