A Beginner’s Guide to Virtual Credit Cards in the Philippines

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Virtual credit cards are becoming increasingly popular, as they offer a convenient and secure way to borrow money. These cards work just like traditional credit cards, but instead of being linked to a bank account, they are linked to a user’s online account. This means that users can borrow money easily and securely from anywhere in the world. The downside is that virtual cards are not as widely accepted as traditional credit cards, so users may need to consider whether they will be able to use the card before applying.

Virtual credit cards are also one of the best ways to pay for online transactions like Shopee, Lazada, Zalora if you don’t want to pay cash.

A virtual credit card is a credit card that only exists digitally and is not linked to a physical card. It is usually issued by a financial institution or a credit card company and is used for online transactions such as shopping or bill payments.

There are a number of different virtual credit card providers available, so it’s important to choose the one that meets your needs. An example of that is the CIMB’s Revi Virtual Credit Card and Unionbank Virtual Credit Card.

Personally, I use the CIMB’s REVI Virtual Credit Card because I already have a pre-approved credit with them. Another one I use is the MAYA Virtual Card but this one is a debit card, not credit.

Some banks who offer physical credit cards also offer Virtual credit cards as an option to protect your identity online, or to be used while you’re waiting for delivery of your physical card.

How to get a virtual credit card?

  1. Contact your bank/financial institution and inquire about their virtual credit card offerings. Some banks and credit card companies may offer virtual credit cards as an additional feature for their customers.
  2. If your bank or credit card issuer offers virtual credit cards, you may be able to generate a virtual card number through a website or mobile app. Follow their instructions to create a virtual card and configure its settings, including the card limit, expiration date, and security code.
  3. If you are trying to create a new account, make sure to provide necessary financial documents so you can get a credit line approved. Some financial companies will require you to submit a government-issued photo ID, current bank statements, proof of income (if applicable), and other required documentation. Once your application is complete, the credit card provider will review your information and may approve you for a credit line. Normally, they will send you an email which you can use to open a virtual account with the chosen credit card provider.
  4. Once you have a virtual credit card, you can use it for online transactions by providing the virtual card number, expiration date, and security code at checkout. The virtual card will be charged with the same amount as a traditional credit card, and you can check your transaction history and manage your virtual card through the website or app provided by your bank or financial institution.

Benefits of using a virtual credit card: What you can expect

There are several benefits to using a virtual credit card, including:

Increased security

Virtual credit cards are not linked to your personal information and can be easily cancelled or replaced if necessary, which can help protect you against fraud and identity theft.

Convenience

Virtual credit cards can be generated on demand and used for a single transaction or a limited time period, which makes them a convenient option for online transactions.

Better control over your spending

Virtual credit cards can be set up with a specific limit and expiration date, which can help you better manage your spending and avoid overcharging your regular credit card.

Better rewards and discounts

Some virtual credit cards may offer special rewards or discounts for online transactions, which can help you save money or earn rewards when you shop online.

Easy to use

Virtual credit cards are easy to use, as you can generate and manage them through a website or mobile app provided by your financial institution or a third-party service. You can simply provide the virtual card number, expiration date, and security code at checkout to make a payment online.

Things to watch out for when using a virtual credit card

Just like your physical credit card, there are also things you should watch out for when using a virtual credit card.

Check the terms and conditions

Before using a virtual credit card, carefully read the terms and conditions to understand any fees, limitations, or restrictions that may apply. Some virtual credit cards may have higher fees or restrictions on where and how they can be used, so be sure to read the fine print.

Protect your virtual card information

Keep your virtual card information safe and secure, such as the card number, expiration date, and security code. Avoid disclosing this information to others and avoid storing it on unsecured websites or devices.

Monitor your transactions

Check your transaction history on a regular basis to ensure there are no unauthorized or fraudulent charges on your virtual credit card. If you notice any suspicious activity, contact your financial institution or the virtual credit card issuer  as quickly as possible to report the issue and take the necessary precautions to protect your account.

Use a trusted provider

If you’re going to use a third-party service to generate a virtual credit card, make sure you go with a reputable and trusted provider. Check for customer feedback and ratings, and do your homework to ensure that the provider is trustworthy and secure.

Be aware of the limitations

When compared to traditional credit cards, virtual credit cards may have limitations such as a lower credit limit, a shorter expiration date, or restricted usage. When using a virtual credit card, keep these limitations in mind and make sure it’s a good fit for your needs and preferences.

In conclusion, virtual credit cards are an excellent way to begin building your credit history. They are simple to use, and you have a variety of options. If you’re thinking about getting a virtual credit card, do your homework and find one that meets your requirements. Finally, keep an eye on your credit score and credit reports because any changes can have an impact on your ability to obtain a virtual credit card.

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