A virtual credit card is a digital version of a credit card that uses a disposable number that's different from what's on the physical card. This feature adds an extra layer of protection in online and card-not-present transactions by preventing the physical card's information from being exposed by a data breach.
CNBC Select explains how virtual card numbers work, where you can get one and how to use it.
Guide to virtual credit cards
How a virtual credit card works
When you get a virtual credit card, your credit card issuer generates a card number along with an expiration date and security code. This information is tied to your card account but doesn't match the information on your physical credit card.
A virtual credit card helps protect you against fraud, since the information generated by the card issuer usually expires after one transaction. And even when that's not the case, you can easily change, lock or delete your virtual credit card anytime you want without it affecting your ability to use your account.
Many credit card issuers provide zero-liability fraud protection on unauthorized transactions, meaning you won't be on the hook for fraudulent purchases. Plus, under the Fair Credit Billing Act (FCBA), consumers aren't liable for more than $50 in unauthorized charges if their credit card is lost or stolen. Still, you'll likely need to dispute the transaction if your card is compromised, then cancel it and request a new one. A virtual credit card helps you avoid this process.
How to get a virtual credit card
The first step to getting a virtual credit card is figuring out if your card issuer offers this feature. Currently, at least three major issuers do, including American Express, Capital One and Citi.
This gives you plenty of options if you want access to virtual card numbers. For example, if you want simple and consistent cash back, the Citi Double Cash® Card offers just that. The card earns 2% on every purchase with unlimited 1% cash back when you buy, plus an additional 1% as you pay for those purchases. To earn cash back, pay at least the minimum due on time. Plus, earn 5% total cash back on hotel, car rentals and attractions booked with Citi Travel.
The Citi Double Cash® Card is one of the best no-annual-fee cash-back cards thanks to its straightforward rewards structure.
- Balance transfers get a long intro APR
- Generous flat-rate cash-back rewards structure
- No annual fee
- Travelers face a foreign transaction fee
- Intro APR only applies to balance tranfer
Highlights
Highlights shown here are provided by the issuer and have not been reviewed by CNBC Select's editorial staff.
- Earn $200 cash back after you spend $1,500 on purchases in the first 6 months of account opening. This bonus offer will be fulfilled as 20,000 ThankYou® Points, which can be redeemed for $200 cash back.
- Earn 2% on every purchase with unlimited 1% cash back when you buy, plus an additional 1% as you pay for those purchases. To earn cash back, pay at least the minimum due on time. Plus, earn 5% total cash back on hotel, car rentals and attractions booked with Citi Travel.
- Balance Transfer Only Offer: 0% intro APR on Balance Transfers for 18 months. After that, the variable APR will be 17.49% - 27.49%, based on your creditworthiness.
- Balance Transfers do not earn cash back. Intro APR does not apply to purchases.
- If you transfer a balance, interest will be charged on your purchases unless you pay your entire balance (including balance transfers) by the due date each month.
- There is an intro balance transfer fee of 3% of each transfer (minimum $5) completed within the first 4 months of account opening. After that, your fee will be 5% of each transfer (minimum $5).
Balance transfer fee
There is an intro balance transfer fee of 3% of each transfer (minimum $5) completed within the first 4 months of account opening. A balance transfer fee of 5% of each transfer ($5 minimum) applies if completed after 4 months of account opening.
Foreign transaction fee
3%
If you have an eligible Citi card, you can enroll for virtual account numbers online on the issuer's website.
The process looks different for Capital One cardholders who can request a virtual card number through Eno, a Capital One robo-assistant. Eno is a browser extension that allows you to create merchant-specific virtual card numbers you can lock, unlock or remove at any time. If you don't have a Capital One card yet, the issuer has a lot of excellent card products to consider. For instance, CNBC Select recommends the Capital One Venture X Rewards Credit Card for its simple rewards travel rewards system and premium perks. The card offers unlimited 2X miles on all eligible purchases and, at $395 per year in annual fees, is a more affordable luxury card.
The Capital One Venture X Rewards Credit Card is a premium credit card with a myriad of benefits and a lower annual fee than other high-end cards with similar features.
- Annual $300 credit for bookings through Capital One Travel
- 10,000 bonus miles after every card anniversary
- Unlimited complimentary access to 1,300+ airport lounges, including Capital One Lounge and Landing locations
- Long list of valuable travel and shopping protections, including return protection, rental car coverage and trip delay reimbursement (Benefit(s) only available to accounts approved for the Visa Infinite card. Terms apply.)
- Limited bonus spending categories compared to other premium credit cards
- High annual fee
- High credit score requirement (excellent credit)
Highlights
- Earn 75,000 bonus miles when you spend $4,000 on purchases in the first 3 months from account opening, equal to $750 in travel
- Receive a $300 annual credit for bookings through Capital One Travel, where you'll get Capital One's best prices on thousands of trip options
- Get 10,000 bonus miles (equal to $100 towards travel) every year, starting on your first anniversary
- Earn unlimited 10X miles on hotels and rental cars booked through Capital One Travel and 5X miles on flights and vacation rentals booked through Capital One Travel
- Earn unlimited 2X miles on all other purchases
- Enjoy access to 1,300+ lounges worldwide, including Capital One Lounge and Landing locations and participating Priority Pass™ lounges, after enrollment
- Use your Venture X miles to easily cover travel expenses, including flights, hotels, rental cars and more—you can even transfer your miles to your choice of 15+ travel loyalty programs
- Enjoy a $100 experience credit and other premium benefits with every hotel and vacation rental booked from the Premier Collection
- Receive up to a $120 credit for Global Entry or TSA PreCheck®
- Top rated mobile app
Balance transfer fee
$0 at the Transfer APR, 4% of the amount of each transferred balance that posts to your account at a promotional APR that Capital One may offer to you
Foreign transaction fees
$0
As for American Express, you can only enroll your eligible card for a virtual card number by adding it to your Google account. You can do so by using Google Chrome on desktop or an Android smartphone or adding your card to Google Pay on americanexpress.com.
Amex offers some of the most popular credit cards for different types of spenders. And if you don't mind an annual fee, you can expect high rewards rates and desirable perks. The Blue Cash Preferred® Card from American Express is a good example. With 6% cash back at U.S. supermarkets on up to $6,000 per year in eligible purchases (then 1%), 6% cash back on select U.S. streaming subscriptions, 3% cash back at eligible U.S. gas stations and on transit (including taxis/rideshare, parking, tolls, trains, buses and more) and 1% cash back on other purchases, the card is a great choice if groceries make up a large chunk of your budget.
The Blue Cash Preferred® Card from American Express is a low-fee card with generous cash-back rewards and useful ongoing benefits, such as a monthly Disney Bundle credit. (Enrollment required for select benefits mentioned)
- High cash-back earnings for U.S. supermarkets and streaming services
- Intro-APR offer for purchases and balance transfers
- No annual fee for the first year
- It's less rewarding after the first year because of the annual fee
- Bonus rewards for U.S. supermarkets are capped
Highlights
Highlights shown here are provided by the issuer and have not been reviewed by CNBC Select's editorial staff.
- Apply and find out your welcome offer. As High As $300 cash back* after you spend $3,000 in purchases on your new Card within the first 6 months of Card Membership. Welcome offers vary and you may not be eligible for an offer. Apply, and if approved: 1. Find out your offer amount 2. Accept the Card with your offer 3. Spend $3,000 in 6 months 4. Receive the cash back. *Cash back is received in the form of Reward Dollars that can be redeemed for a statement credit or at Amazon.com checkout.
- $0 intro annual fee for the first year, then $95.
- Enjoy 0% intro APR on purchases and balance transfers for 12 months from the date of account opening. After that, your APR will be a variable APR of 19.49%-28.49%.
- Plan It®: Buy now, pay later with Plan It. Split purchases of $100 or more into equal monthly installments with a fixed fee so you don't have the pressure of paying all at once. Simply select the purchase in your online account or the American Express® App to see your plan options. Plus, you'll still earn rewards on purchases the way you usually do.
- Earn 6% cash back at U.S. supermarkets on up to $6,000 per year in eligible purchases (then 1%), 6% cash back on select U.S. streaming subscriptions, 3% cash back at eligible U.S. gas stations and on transit (including taxis/rideshare, parking, tolls, trains, buses and more) purchases and 1% cash back on other purchases. Cash Back is received in the form of Reward Dollars that can be redeemed as a statement credit and at Amazon.com checkout.
- Get up to a $10 monthly statement credit after using your enrolled Blue Cash Preferred® Card for a subscription purchase, including a bundle subscription purchase, at DisneyPlus.com, Hulu.com, or Stream.ESPN.com U.S. websites. Subject to auto-renewal.
- Terms Apply.
- See Rates & Fees
Balance transfer fee
Either $5 or 3% of the amount of each transfer, whichever is greater.
Foreign transaction fee
2.7% of each transaction after conversion to US dollars
How to use a virtual credit card
Once you enroll for a virtual credit card with your issuer, you can begin using it. Simply input your virtual card information when you're making a purchase online and the transaction will appear in your card account. You'll also be able to see it on your card statement.
While the feature is designed for card-not-present transactions, you can sometimes use it in-store. Specifically, if you can link your virtual card to a digital wallet — such as with American Express — and the store accepts digital wallet payments, it's possible to use a virtual card number when shopping in person.
Note that while virtual cards offer extra safety, they're not always an ideal solution. For instance, let's say you're returning an item you have bought with a one-time virtual card number. If the store only gives you the choice between a refund to the original payment method and store credit, you might have to opt for the latter. Or, if you make a reservation online, you may be asked to verify with the card you used to book — and a virtual card number not matching your actual card information can present a problem.
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Bottom line
Virtual credit card numbers can offer an additional layer of protection when you're shopping online or over the phone. Not every credit card issuer provides this feature, but if yours does and you want a little more peace of mind, you may want to sign up.
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At CNBC Select, our mission is to provide our readers with high-quality service journalism and comprehensive consumer advice so they can make informed decisions with their money. Every credit card review is based on rigorous reporting by our team of expert writers and editors with extensive knowledge of credit card products. While CNBC Select earns a commission from affiliate partners on many offers and links, we create all our content without input from our commercial team or any outside third parties, and we pride ourselves on our journalistic standards and ethics.
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For rates and fees of the Blue Cash Preferred® Card from American Express, click here.
