When you make a purchase online, by mail or over the phone, you may wonder whether your credit card information is secure. After all, even if the merchant is trustworthy, someone could intercept or otherwise steal the credit card information you've provided the merchant. And, although most credit cards offer zero liability protection, it's a hassle to cancel a card number and start over with a new one.
However, using a virtual credit card number for card-not-present purchases can keep your credit card information secure and decrease the inconvenience you face if your virtual card number is compromised. In this guide, I'll discuss everything you need to know about virtual credit cards.
What is a virtual credit card?
A virtual credit card is a digital version of a physical credit card. Virtual credit cards let you shop online, via the mail and over the phone without providing your physical credit card number to the merchant. Instead, you'll give the merchant a virtual credit card number linked to your account.
You might wonder why this matters. Well, if a virtual number is used for a purchase and is stolen or compromised, you can cancel the virtual card number without needing a new physical card number.
In short, using a virtual number decreases the chances that someone will steal your physical card number. And you want to avoid compromising your physical credit card number because then you'll have to get a new physical credit card with a new card number.
Related: 6 tips for keeping your credit card safe online
How do I use a virtual credit card?
Once you obtain a virtual credit card number, you can often use it for card-not-present purchases, similar to how you'd use a physical credit card number. For example, if you're making a purchase online, you'd enter the virtual credit card number and details when making the purchase instead of using your physical credit card details.
Can I use a virtual credit card in a store?
You can use some virtual credit card numbers in stores via a digital wallet. However, not all credit card issuers provide virtual credit card numbers that you can add to digital wallets. And many stores still don't accept payment by digital wallets.
Related: Will my rewards change if I pay by mobile wallet?
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Are there virtual credit card benefits?
Virtual credit card numbers provide additional security to your existing credit card accounts. In particular, if a virtual credit card number is compromised, you can easily cancel the virtual number and keep your actual card number the same.
Each virtual card number is often tied to a specific merchant or only useable for one purchase. So, even if your number is stolen, it may not be readily useable by the thief.
You can also set spending limits on some virtual credit card numbers. So, if you are providing the number to someone, you may be able to limit how much they can spend on your card.
It's also easy to track your purchases with virtual credit card numbers. Virtual credit card purchases will appear on your monthly statement alongside purchases made using your physical card number.
What are the downsides to a virtual credit card?
First off, not all credit card issuers offer virtual credit card numbers. Also, generally, you'll only be able to use virtual credit card numbers for online and other card-not-present transactions. You may also need a specific web browser to use a virtual credit card number with some credit card issuers. However, even if you can use a virtual credit card number, there are some cases where you shouldn't.
For example, you won't want to use a virtual credit card for pick-up orders, will-call tickets or select travel purchases since you might need to swipe or show the card you used for the purchase. Although this isn't usually an issue with most U.S. hotels and airlines, I have occasionally needed to show the credit card I used to purchase a flight at the check-in counter when traveling outside the U.S.
Additionally, if you need to return an item, the merchant will often return the money to your credit card. However, the merchant will usually only be willing to refund money to the credit card number used to make the purchase. So, if your virtual credit card number isn't still active, you may have to settle for a store credit.
Which credit card issuers have virtual cards?
Only some credit card issuers offer virtual credit card numbers. But, three of the most prominent U.S. issuers offering virtual card numbers are Capital One, Citi and American Express.
Capital One
You can get a virtual credit card number for Capital One credit cards via the Capital One website or by using the Eno assistant.
If you're willing to install the Eno browser extension, it will create virtual card numbers when you shop online from your desktop computer. You have to register your Capital One card once you install the extension (it takes less than 60 seconds per card), but then Eno will offer to generate a virtual card number when you're ready to make an online purchase. Once Eno creates a virtual number for a specific merchant, Capital One ties that number to that merchant. As such, the number won't be useable by other merchants.
Even if you don't want to install the Eno browser extension, you can generate and manage virtual card numbers through your Capital One account. Sign in to your Capital One account, select a card and click "I Want To ... " partway down on the right side of your browser window. I typed in "virtual cards" and clicked on the "Manage Virtual Cards" result that appeared. From this page, you can manage any of your existing virtual credit card numbers or click "Create virtual card" to create a virtual card number you can use with one merchant.
You can lock, delete or change the nickname on a virtual credit card at any time from within your Capital One account. It's a good idea to set the nickname as the merchant with which you've used the virtual credit card number.
Related: The best time to apply for these popular Capital One credit cards based on offer history
Citi
Some Citi credit cards offer virtual credit card numbers. For example, all five of my consumer Citi credit cards — including some no-annual-fee cards and some no-longer-available cards — support virtual credit card numbers. However, I couldn't find a way to generate a virtual credit card number for my CitiBusiness card.
To create virtual credit card numbers on your personal Citi card, log in to your Citi online account, select a card account and click "Virtual Account Number" under the card name. You'll then need to accept the terms, select the Citi account you wish to use and decide whether to set time and dollar limits for your Citi virtual account number. Then click "Generate Number" to create your virtual credit card number.
You can add a nickname to each Citi virtual credit card number and set a daily spending limit and expiration on existing virtual credit card numbers through your virtual account number dashboard on the Citi website. You'll see transactions made with your virtual credit card number on your monthly statements alongside transactions made with your physical credit card. But you can search for "Virtual Account Number" on your account details page to only view virtual credit card transactions.
Related: Is the Citi Premier worth the annual fee?
Amex
American Express supports virtual credit card numbers for U.S. Amex cards when you shop from a Google Chrome browser on your desktop or Android mobile device (or, where available, within Android apps).
You may see a prompt to enroll in a virtual card number when you complete a purchase with a card you've saved in your Google account. You can also log into your Google account, select the payment settings tab and then click the three dots for the card you want to enroll in virtual credit card numbers. Or, you can log into your account on the American Express website, select "Account Services," then "Card Management," then "Manage Digital Wallets & Payment Features," and then click "Add Card" in the "Add Card to Google Pay" section.
To use a virtual credit card number for an Amex card, select the virtual card number from the payment options drop-down when you are on a merchant's payment screen in a Google Chrome browser (or Android app). Google Chrome will automatically populate your payment information, and then you'll check out as usual. Note that you'll need to be logged in to the Google Chrome account associated with your card, and you may need to enter a one-time verification code to confirm your identity when you use an Amex virtual credit card number.
Related: Amex Gold vs. Platinum: Which one is right for you?
Is an instant credit card number the same as a virtual credit card?
An instant credit card number is different from a virtual credit card number. Some credit card issuers provide new members with an instant credit card number for digital use until their physical card arrives when they are approved for a new card. Conversely, a virtual credit card is a single-use, temporary credit card number for online purchases.
Related: Our favorite under-the-radar credit card perks
Should I use a virtual credit card number?
Many consumers don't know about virtual credit cards and the cases in which they should consider using one. However, using a virtual credit card when shopping online or over the phone can make it easy to secure your account if your card number is compromised. It takes a little extra time to generate a virtual credit card number before making a purchase, but some credit card issuers have tools and apps that make the process relatively quick.
In short, using a virtual credit card number when shopping online may be smart. You can add it to your shopping routine alongside using an online shopping portal and one of the best cards for online shopping.
Editorial disclaimer: Opinions expressed here are the author’s alone, not those of any bank, credit card issuer, airline or hotel chain, and have not been reviewed, approved or otherwise endorsed by any of these entities.
