Virtual debit cards are the newest innovation in the banking sector. They are debit cards but are digitalised in nature. With the growing preference for digital payments, they couldn’t have come at the right time. They ensure fast, secure, and convenient digital payments without having the hassle of carrying physical debit cards. Read on to learn more about virtual debit cards, their features, and their benefits.
What is a Virtual Debit Card?
A virtual debit card is a digital version of your physical debit card. The bank offers it through the mobile banking app, which only exists on your phone. The virtual debit card comes with a unique 16-digit card number, expiry date, and CVV, just like a physical card. It can perform all the functions of a physical debit card, such as purchasing goods and services online. The card can also be used at physical stores which accept contactless payments. However, it cannot be used to withdraw cash from ATM.
Virtual debit cards are an excellent option for the current generation, given their inclination towards digitalisation. Moreover, the card can be used easily and is considered very safe compared to a physical card.
How Do Virtual Debit Cards Work?
A virtual debit card is instantly created on the bank’s website or mobile application. They work just like physical debit cards, and the only difference is that you will have the debit card on your mobile. You can use the card for shopping online or to make payments at contactless point of sale (POS) machines.
Using virtual debit cards is very easy. When you shop online, you will have to choose the debit card option and enter your virtual debit card details. You can use it for offline purchases through contactless POS terminals.
List of Virtual Debit Cards in India
The following are some of the virtual debit cards in India.
| Bank | Virtual Debit Card |
| Federal Bank | VISA Debit card on Jupiter App issued by Federal Bank |
| Kotak Mahindra Bank | Kotak 811 Virtual Debit Card |
| State Bank of India | SBI Virtual Card |
| Axis Bank | Axis ASAP Virtual Debit Card |
| Bank of Baroda | BoB Virtual Debit Card |
| Yes Bank | YES Pay Virtual Debit Card |
| HDFC Bank | HDFC Bank PayZapp Virtual Debit Card |
| Punjab National Bank | PNB Virtual Debit Card Through PNB ONE |
| ICICI Bank | ICICI Bank Pockets Virtual Debit Card |
| DBS | DBS DigiBank Virtual Debit Card |
Benefits of Virtual Debit Card
The following are the benefits of a virtual debit card.
- Easy setup and use: Getting a virtual credit card is very convenient. You need not visit a bank or fill out an application form to get a virtual debit card. Banks create it instantly upon your request. Moreover, you need not activate the card through an ATM. You can use it immediately after receiving it.
- Secure: A virtual debit card is saved in your mobile application on your phone. There is no physical copy, and hence no threat of theft or damage. Moreover, it cannot be duplicated by anyone. Hence, using a virtual debit card eliminates the risks associated with a physical debit card.
- Convenience: You can use your virtual debit card anywhere and anytime without having to carry a physical copy of your debit card. It makes transacting easy, quick, and convenient.
- Easy blocking: In case you suspect any malicious activity on your debit card, it can easily be blocked within minutes through your mobile bank application. You need not have to contact the bank or wait on a call with the customer service executive to block your card.
- Offers: Virtual debit cards offer a range of discounts and rewards, as well as offers on dining, movies, shopping, and travel. You can redeem these offers from your mobile application easily.
- Set transaction limit: Just like physical debit cards, you can set transaction limits for virtual debit cards. This will help you control your expenses.
- International transactions: You can use your virtual debit cards for international transactions. This makes it a convenient option for frequent travellers. Moreover, some cards also have currency conversion options without incurring additional charges.
- Low fee: When compared to physical debit cards, virtual debit cards have low fees. They have zero annual fees, low transaction fees, and no hidden charges. This ensures that your online transactions are cost-effective.
Limitations of Virtual Debit Card
Despite having several advantages, virtual debit cards have certain limitations. The following are the limitations of virtual debit cards.
- No ATM access: Virtual debit cards do not have access to ATMs. Hence, you cannot withdraw cash from an ATM using your virtual debit cards.
- Do not support offline transactions: Virtual debit cards cannot be used to make in-store purchases that use tapping or swiping-based POS. It can only be used on contactless POS machines.
How To Get a Virtual Debit Card?
Getting a virtual debit card is a simple and straightforward process. Most banks give you a virtual debit card when you open an instant account with them. Instant accounts can be opened online with zero paperwork. The following is the process of getting a virtual debit card.
- Apply for a bank account: Apply for an instant bank account by going to the bank’s website.
- Submit documents: Submit all the necessary documents by uploading them on the bank’s website.
- Sign up for a virtual debit card: Once the account is opened, the bank will give you a welcome kit along with the virtual debit card. To use the card, you must sign up for net banking. Once you get the access, you can start using your virtual debit card.
Virtual Debit Card vs Physical Debit Card
The following are the differences between virtual debit cards and physical debit cards.
| Basis of Difference | Virtual Debit Card | Physical Debit Card |
| Tangibility | Exists only in digital form. | You can physically hold a debit card. |
| Security | Very secure as the card is present only on your mobile. | It is less secure when compared to virtual debit cards due to the risk of theft or damage. |
| Convenience | Quick and easy payments from anywhere. | Easy payments provided you carry the card. |
| Set up | Quick and easy setup. | Requires activation at the ATM |
| Availability | It is created and delivered instantly by the bank upon your request. | The bank will send it through post, and hence, it takes time to be delivered. |
| Privacy | Has more privacy by not revealing the card information. | Card information can be easily stolen, so there is less privacy. |
| Blocking and unblocking | Blocking and unblocking the card is very easy. | It takes time to block and unblock your debit card. |
Conclusion
Virtual debit cards are an excellent innovation offered by banks. They make online payments easy and convenient. Moreover, they are highly secure when compared to physical debit cards and reduce the risks of fraud. However, virtual debit cards have certain limitations. They cannot be used at ATMs to withdraw cash, nor can they be used at physical POS machines which do not have contactless payments. Hence, make sure you clearly define the objective of using a virtual debit card before opting to use one.
Frequently Asked Questions
What is a virtual debit card?
A virtual debit card is a digital version of your physical debit card. It performs all the functions of a physical debit card and offers additional security and privacy. Payments made through virtual debit cards are easy, quick and convenient.
Which banks give virtual debit cards?
Almost all banks offer virtual debit cards, and some of them are Kotak Bank, HDFC, SBI, ICICI Bank, PNB, Axis Bank, and Yes Bank.
Can I use a virtual card on an ATM machine?
No, you cannot use a virtual debit card on an ATM machine. This is one of the major limitations of virtual debit cards.
Is a virtual debit card safe?
Yes, virtual debit cards are very safe and secure when compared to physical debit cards. This is because the card is digital and is available only on your mobile banking app. It is difficult to duplicate or steal a virtual digital card. Moreover, there is no risk of damage either. Hence, a virtual debit card is very safe.
What are the disadvantages of virtual debit cards?
A major disadvantage of a virtual debit card is that it cannot be used to withdraw cash at an ATM. Moreover, you cannot use it to make in-store purchases where swiping or tapping the card is necessary.
Are virtual cards accepted everywhere?
Virtual debit cards can be used to make online purchases. Moreover, it can also be used at stores that accept contactless payments through POS machines. However, you cannot use it to make in-store purchases where swiping or tapping the card is necessary.
Is a virtual debit card chargeable?
Virtual debit cards have lower fees than physical debit cards. However, they are not free. Most virtual debit cards charge a minimal fee of around Rs 25 to issue the card.
