Decoding Virtual Debit Card Meaning and its many uses
When we speak about banking today, we often use the word digitalisation. Digitalisation goes beyond swiping your bank cards to make payments. It includes adopting a cashless policy for all kinds of transactions. For instance, when you use your debit card or credit card to make payments, you are going cashless. While plastic debit cards have been around for the longest time, banks today also provide Virtual Debit Cards. Let us understand Virtual Debit Card meaning and its benefits in this article.
A Virtual Debit Card is an electronic form of a physical Debit Card made for e-commerce transactions. It resembles a regular debit card in most parts in that it has its own unique card number, expiration date, and CVV, which you can use to initiate online transactions. This card is a convenient way of making online domestic payments without providing your primary account information to the merchant. A virtual debit card is typically a temporary solution to your physical debit card until the bank couriers the latter to your home.
A Virtual Debit Card is simply a Debit Card that exists on your smartphone. When you open a bank account digitally, your bank will create Virtual Debit Card in your mobile banking app. Ensure you sign up for internet banking services so that you can use the Virtual Debit Card online for transactions on e-commerce websites.
After account opening, you either visit the bank branch to obtain your Debit Card, or you must wait for the bank to courier the card to your doorstep. Thus, you end up losing time that otherwise could have been used to enjoy the card benefits. The Virtual Debit Card, however, gets activated instantly in the mobile banking application once you complete the OTP-based e-KYC authentication process.
The absence of a physical Debit Card eliminates the risk of the card being misused if it is stolen or misplaced. If you suspect your Virtual Debit Card is being used unlawfully, banks give you the option to block the card instantly from the mobile application itself. You can disable the Virtual Debit Card and prevent potentially fraudulent activities.
Like your regular physical Debit Card, a Virtual Card, too, comes with numerous benefits like reward points and cashback for online shopping, bill payments, and other such online transactions. You can also use the Virtual Debit Card to make payments on government-backed payment platforms. All transactions for the Visa Virtual Debit Card are deemed as ‘Card-not-present Transactions’.
Now that you know what a Virtual Debit Card means, you can utilise it for your various payments without worrying about losing or misplacing it. You can use the card to make digital payments on e-commerce websites like you would, your regular Debit Card.
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*Disclaimer: This article is for information purposes only. We recommend you get in touch with your income tax advisor or CA for expert advice.