{"id":5737,"date":"2013-08-20T18:26:28","date_gmt":"2013-08-20T10:26:28","guid":{"rendered":"http:\/\/www.imoney.my\/articles\/?p=5737"},"modified":"2025-04-04T16:32:44","modified_gmt":"2025-04-04T08:32:44","slug":"virtual-credit-card-an-introduction","status":"publish","type":"post","link":"https:\/\/www.imoney.my\/articles\/virtual-credit-card-an-introduction","title":{"rendered":"Virtual Credit Card \u2013 An Introduction"},"content":{"rendered":"

\"Virtual\n<\/p>\n

Though Malaysian banks do not readily offer this service yet, cardholders in many countries use a certain financial instrument called the virtual credit card to make online purchases without revealing their \u00a0card details over the Internet. If you are interested to educate yourself on this very nifty financial service, read on.<\/p>\n

<\/span>What is it?<\/strong><\/span><\/h2>\n

Despite the name, it is really not a card, but a set of numbers that is generated by a financial service provider to enable a consumer to make online purchases (very much like a credit card). It is also known as \u201cControlled Payment Numbers\u201d.<\/p>\n

Akin to a credit card, it comes with a credit limit, and is usually accompanied by an expiration date. Depending on choices offered by the financial entity and options taken by the user, a virtual credit card may work for multiple transactions or may expire with only one single use. Most of the time, it is generated to be used with one merchant and for one specific purchase only.<\/p>\n

<\/span>Why would people opt to use it?<\/strong><\/span><\/h2>\n

It is seen by many as an excellent method to reduce the potential of credit card fraud for many reasons. These are the two key ones:<\/p>\n

– It is usually created to be used for a specific purchase, of a specific value, with a specific merchant. Technically, it is highly unlikely that it can be used to make any other form of purchases even if the details are stolen.<\/p>\n

– Even for virtual credit cards with multiple-transaction facility, the small spending limits (compared to a conventional credit instrument \u00a0where the credit limit can be anything from RM3,000 all the way to RM18,000 or more) mean the potential financial damage is much smaller in the event of fraud.<\/p>\n

<\/span>How to apply for one?<\/strong><\/span><\/h2>\n

For those who live in countries with banks that offer virtual credit cards, the application process differs from provider to provider but generally involves:<\/p>\n