Explained: All about making safer online transactions with virtual credit cards
Recently, there were multiple instances of data breaches reported. Personal and card details of customers saved on e-commerce websites, mobile-wallets, etc. were compromised in data breaches or malware attacks.
One way to overcome these concerns is to use a unique virtual card, which replaces the actual credit or debit card number. Kotak Mahindra Bank offers the NetC@rd, which can be used only once. Similarly, HDFC Bank offers NetSafe. ICICI Bank and State Bank of India (SBI) have their own virtual card facilities. These virtual cards issued by the banks are for limited time periods or for single online transaction usage (features vary across banks).
“Virtual cards offer several layers of protection that make them fraud-resistant,” says Murali Nair, President of Zeta’s Banking Business. “We have seen an increase in demand for virtual cards, primarily because COVID-19 pandemic which has necessitated remote and instant on-boarding of users,” he adds.
Says Puneet Kapoor, President - Products, Alternate Channels and Customer Experience Delivery at Kotak Mahindra Bank, “With online transactions increasing, virtual cards are extremely convenient. The popularity of virtual debit cards is …
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