The usage of credit cards has increased quickly from the last few years ago. There is a big reason to use a credit card nowadays as you get a one-time bonus if you are a new applicant or you can also get a reward or else the bonus points. Whenever we hear about the word cashback it seems like a slight profit to a person getting while going to purchase anything in the market or purchasing anything through online mode. Yes, credit has the cashback features and comes as per the season. Let us understand what we mean by virtual credit cards and physical credit cards?
What do we mean by Virtual credit card?
By the word, virtual credit card means the card that is used virtually for any kind of online transaction. Nowadays online forms and transactions are one of the most used facilities in every house. There are various types of security issues and online data hacking issues but to get rid of this, companies have started applying the encryption model. If you are using a virtual credit card then you will be having a preset credit limit this will help you to maintain, adjust your finance and expenses as per your requirement and need.
You can also have one of the important features that are to link the virtual credit card with a physical credit card as both of them will give the common results in the form of a statement if you are using a virtual card or a physical card.
What do we mean by physical credit card?
Physical credit cards are being offered by banking and financial institutions to their customers. Customers can use this credit card to withdraw cash either from ATMs or directly from banks. A physical credit card is also used for online transactions. As it has a card number, CVV, and the validity of the card. You need to generate the PIN that it can act as a security purpose
What is the difference between both cards?
-So the first main difference is that virtual cards can only be used in online transactions whereas physical credit cards can be used both in online transactions as well as offline transactions.
– You can get more rewards and points on a physical credit card but not on a virtual credit card.
– The virtual credit card cannot be swiped on the machine where is the physical credit card can easily be swipe on
– Physical credit cards also come with free interest rates but not virtual cards.
– In a virtual credit card you cannot convert any payment into EMI whereas in a physical credit card you can easily convert any kind of payment into EMI.
– Improving your credit score will be only possible with a physical credit card but not in virtual credit card
So this is a short explanation with clear-cut sentences to understand what is the basic difference between a physical credit card and a virtual credit card.