Tipping point

By : Business Standard
Last Updated: Mon, Mar 11, 2013 05:48 hrs
A consumer holds her credit cards in Washington

How safe are virtual cards over credit or debit cards?
Virtual cards are safer than debit or credit cards, as these do not require the cardholder to enter the debit or credit card details. On registering with a bank, cardholders get a 16-digit number, along with a CVV2 number, which they need to enter at the time of making payment. This number is different from the CVV number written on credit cards. The number is generated by banks only for one-time use, where the person can set a limit for transaction.

Is it important to have a credit card to get a virtual card?
No, it is not necessary to have a debit or credit card. The cardholder just needs to have a bank account with the virtual card-issuing bank. Lenders issue such cards without any charges.

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