What Banks and Apps Offer Virtual Credit Cards?

Virtual cards are prominent digital payment tools for online transactions. They offer secure, flexible payments without a physical card. Their relevance stems from the shift to digital commerce, where secure and convenient online transactions are a primary concern. They facilitate digital interactions, offering a modern alternative to traditional payment methods.

Understanding Virtual Cards

A virtual card is a digital-only payment credential, comprising a 16-digit card number, an expiration date, and a security code (CVV). Its primary function is to enable secure online transactions by masking the user’s actual primary card details. While linked to an existing bank account or credit card, the unique number generated for the virtual card differs from the physical card’s number.

Virtual cards can be generated for single use, recurring payments, or a specific period, offering flexibility. When used, the virtual card details are entered into online payment forms, but the underlying account information remains protected. Funds for transactions are drawn from the linked primary account, and all charges appear on its statements.

Banks and Financial Institutions Offering Virtual Cards

Many financial institutions now offer virtual card services, reflecting their growing adoption. This includes large national banks, digital-first financial technology (fintech) companies, and third-party payment services. These entities integrate virtual card generation into their online banking platforms and mobile applications, making them accessible to customers.

Many large national banks provide virtual card options as a feature within their existing credit card or checking account services. They allow customers to generate virtual card numbers through secure online portals or mobile apps, linking them directly to primary accounts. This integration provides a seamless experience.

Digital-first banks and challenger banks also highlight virtual cards as a core offering, leveraging technology for instant issuance and enhanced control. These newer financial entities design platforms with digital payments at the forefront, making virtual card generation a prominent and user-friendly feature.

Beyond traditional and digital banks, various third-party payment services and specialized fintech companies also facilitate virtual card creation. These providers may offer virtual cards linked to prepaid accounts, specific project budgets, or for enhanced expense management, particularly for businesses. The availability of virtual cards across these diverse providers underscores their recognition as a tool for modern digital commerce.

Generating and Using Virtual Cards

Generating a virtual card begins in your financial institution’s online banking portal or mobile application. Users navigate to a card management or security section for creation. Options include specifying a spending limit, expiration date, or single use. Some platforms allow associating the virtual card with a specific merchant or transaction type, adding control.

Once generated, the virtual card details—including the unique 16-digit number, expiration date, and CVV—are displayed digitally. These details are used for online purchases or subscriptions. Enter the virtual card’s information into payment fields. The transaction is processed through standard payment networks, with funds drawn from your linked primary account.

For recurring payments or subscriptions, a virtual card can be set up to be permanent or to expire after a certain period. If a virtual card is compromised or no longer needed, it can be easily deactivated or deleted through your banking platform. This direct control over the virtual card’s lifecycle streamlines management and enhances security.

Security and Control Features of Virtual Cards

Virtual cards enhance financial security and provide greater control over spending. A primary benefit is their ability to generate temporary or unique card numbers for each transaction or vendor. If a merchant’s system is compromised, the exposed virtual card number is invalid or expires quickly, reducing fraud risk on your primary account. This functionality means your actual card number remains private and is never directly exposed to online retailers.

They also offer enhanced privacy. Using a unique virtual number allows purchases without revealing primary card details, protecting personal financial information from data breaches. This separation adds anonymity to online transactions. Customizable spending controls allow users to set specific limits for individual virtual cards, aiding budgeting and preventing unauthorized overspending.

Setting expiration dates provides a control mechanism. Virtual cards can expire after a single transaction, a specific period, or a predefined amount is spent. If suspicious activity occurs or a subscription needs cancellation, a specific virtual card can be quickly deactivated or cancelled without affecting your primary physical card. This granular control is an advantage for managing online finances.