Virtual Debit Card

Virtual Debit Card is a digital variant of the regular debit card which can be used to make online cashless transactions. This electronic debit card comes with its own 16-digit unique card number, expiry date and CVV just like any regular physical debit card and can be accessed through the respective bank’s mobile application. Apart from the e-commerce websites and online bill payments, certain virtual debit cards may also be used at the merchant POS which accept contactless payments.

Virtual Debit Cards come as a great option for today’s card users due to their ease of access and higher safety. Since they are used digitally, there’s no need to carry a physical card, reducing the risk of it being lost, stolen, or damaged.

Also Read: Best Credit Cards in India

Listed below are some of the top virtual debit cards in India which you can choose from:

Virtual Debit Cards come with several features that make banking and their usage convenient and trouble-free. Some of these benefits are listed below:

Safe and Secure

Virtual debit and credit cards offer relatively higher safety and security. Unlike physical cards, which can be lost, stolen, or counterfeited, virtual cards eliminate these risks as they exist only in digital form. Even if the card details are leaked or hacked, you can block the card immediately through your bank’s mobile app or online platform. Additionally, these cards are more secure as they are protected by passwords and other security features provided by the issuer’s digital platforms.

Easy to Use

It is very easy to activate and use virtual debit cards. Generally, no separate setup or registration process is required, and the virtual cards are instantly activated. These cards are also convenient for making online payments anytime and anywhere.

Offers and Deals

You can avail a wide range of online offers and deals on food, dining, shopping and other lifestyle categories offered by various e-commerce platforms by using virtual debit cards. Moreover, you can also earn reward points on your purchases made via certain cards.

Convenient to Carry

With a virtual debit card, there’s no need to carry a physical card everywhere. You don’t have to worry about remembering your card; simply use your mobile phone to access the virtual card digitally anytime you need it.

Flexible Card Limits

Virtual credit cards and debit cards allow consumers to customize the transaction or spending limits as per their preference and needs. You can change and set the card limits whenever you want online using the respective mobile app. 

Cashless Transactions

Virtual debit cards allow cardholders to make digital cashless payments on any of the online platforms for shopping, like Amazon, Flipkart, Myntra and many more, or make online bill payments as well. However, generally the virtual cards don’t have the facility to make offline transactions at the POS, unlike other physical debit or credit cards.

Low Annual Fee

Virtual debit cards are offered with zero or nominal annual fees. Some of these virtual cards are offered on opening certain bank accounts, like Kotak 811 account holders are given an accompanying free virtual Kotak debit card at the time of account opening. In this case, if you want the physical card variant, then you have to apply for it later and pay the physical card’s fee separately.

Instant Card Blocking

If your virtual card shows any signs of misuse, you can instantly block your card anytime to prevent any unauthorized transaction. Unlike some physical debit cards which you can block by contacting the bank via customer care service, virtual debit cards can be easily blocked or unblocked online by simply logging in to the respective bank’s mobile app or internet banking account and clicking on the card block option.

Despite the above mentioned benefits, virtual debit cards also come with a few disadvantages. The major limitations you might face while using a virtual card are as follows:

• Digital card variants can not be used at ATMs and hence do not allow their users to withdraw any cash
• Virtual debit cards do not support offline transactions made at the physical stores, so the cardholders cannot make any payment that requires card swiping or tapping at the PoS

Virtual debit cards are usually issued by many of the card providers when you open a bank account with them. You can follow the below mentioned steps for the same:

Step 1: Apply for bank account – Generally, you do not have to apply for a virtual card separately, but rather have to open a bank account which comes with a virtual card.

Step 2: Application approval – Submit the application form with the required documents and identity proofs. Once your account opening application is approved, the bank will issue a virtual debit card as part of the welcome kit.

Step 3: Sign up to use the card – The virtual card, thus received, can be accessed to make online transactions via issuer’s mobile app after signing up for the net banking services.

You can also get a virtual card by applying separately, in case you do not receive it at the time of opening a bank account. For this, issuers normally provide both offline and online procedures. You can either visit the nearest branch for assistance or apply online via the issuer’s internet banking portal.

How to use virtual debit cards?
You can use your virtual debit card just like a regular card for online transactions. For example, when shopping on an e-commerce website, simply enter your virtual debit card details—such as card number and CVV—on the payment page to complete your purchase.

Can I use a virtual debit card at an ATM?
Virtual debit cards are typically limited to online transactions and cannot be used at ATMs or for cash withdrawals. If you wish to make offline purchases or withdraw cash, you can apply for a physical debit card.

What is the eligibility criteria to apply for a virtual debit card?
Usually, there is no specific eligibility requirement to apply for a virtual debit card. Most banks issue a virtual debit card automatically at the time of account opening. However, you can also apply for one separately by filling out an application form.

What is the disadvantage of a virtual debit card?
While virtual debit cards are great for online transactions, their main disadvantage is that they cannot be used for offline transactions at PoS terminals, as they exist only in digital form.

Are virtual debit cards linked to a bank account?
Yes, like regular debit cards, virtual debit cards are also issued against a savings or current account. The card is directly linked to your bank account, and the transaction amount is debited from the linked account.

Are virtual debit cards safe?
Yes, virtual debit cards are safe for online transactions. Unlike physical cards, they cannot be lost, stolen, or counterfeited since they exist only in digital form. Even if the card details are compromised, you can immediately block the card through your issuer’s mobile app or internet banking platform.