A virtual credit card (VCC) is a temporary random number generated by a computer software, similar to a credit card number, which you can use for your online transactions. The one-time-use number will be linked to your actual credit card number, so the transaction will be listed on your monthly bill. This service is provided by many banks worldwide to protect the customers’ personal information from getting leaked. The banks set up a software program on the primary cardholder’s computer. This program generates a temporary number that will only be representing your original card number.
Currently, DBS offers a commercial card named DBS Virtual Card with which a company can manage the expenses of its employees by not giving separate cards to each and every one of them. This card helps to consolidate the various expenditures involved on a daily basis.
It is basically an online tool that helps record and monitor the expenses by different employees. DBS allows you to restrict how regularly and where card must be used, and prevent misuse. The company can allow only a few employees to make changes to the limits set or to issue new cards. You can also cap the number of transactions, the categories under which the employees can shop, and the total expenditure in a month.
For instance, if the main reason for you to opt for the virtual credit card is to take care of your employees’ travel expenses, you can use the card for only categories such as airfare, rental, travel agencies, and hotels.
For VCCs that you can use for only one transaction, you will have to use up the full amount at once. However, in case you don’t use it, the remaining amount will be credited back to your original card’s account. You will also not be able to use a VCC number over the counter. It is not a replacement of your physical card. In case your VCC expires and you want to exchange the merchandise bought using the card, you may not get the credit back in the card. You may have to settle for store credit instead.
Nevertheless, the option of having a virtual credit card makes your transactions better because you will not be revealing the actual number of your credit card. And in this day and age where data breaches are easy, VCC offers a safe and secure option for online transactions.