Virtual vs Physical Credit Cards: What's Best for You?

In our increasingly digital world, credit cards have become an indispensable part of our daily lives. The convenience of a credit card is now available in different forms, and one can choose between a physical card vs virtual card. This blog explores the differences between physical and virtual credit cards to help you decide which option suits your needs better.

What is a Physical Credit Card?

A physical credit card is a tangible card that a credit card issuer issues that enables you to make purchases, withdraw cash, and access credit facilities. This traditional credit card is widely used and accepted in retail stores, ATMs and online transactions.

What is a Virtual Credit Card?

A virtual card, on the other hand, is a digital version of a credit card accessible through a mobile application. Like physical cards, virtual credit cards have unique card numbers, CVV codes, and expiration dates. Virtual cards are ideal for online shopping and managing recurring payments.

Differences Between Physical and Virtual Credit Cards

We’ll dive into the pros and cons of physical card vs virtual card to help you make an informed decision.

1. Security

Security is an important factor in evaluating physical card vs virtual card, as both provide features to protect your finances. While physical credit cards employ traditional security measures like EMV chips and PINs, virtual credit cards often offer enhanced security features. For instance, virtual cards come with a one-time usage option, where the generated card number is valid for a specific period, typically ranging from 24 to 48 hours. With a virtual card, you can easily disable or delete the card in case of fraud or unauthorised access. Physical cards are also more susceptible to loss, theft, or skimming. With virtual cards, you can not only set and modify spending limits conveniently, but you can also set spending limits with any merchant. This protects you from being overcharged in an online or phone transaction.

Also Read: How OneCard Keeps You Safe from Credit Card Fraud?

2. Acceptance

Physical credit cards are widely accepted at stores and ATMs. On the other hand, virtual cards are mostly preferred for online shopping. They may not be ideal for face-to-face transactions or withdrawing cash.

3. Spendings Tracking

Both physical and virtual credit cards enable you to track your transactions and spending patterns in real time. However, virtual cards may provide additional features within their respective mobile apps. For example, the One Credit Card app offers features such as expense categorisation, budgeting tools, and converting transactions into EMIs.

4. Issuance and Spending Limits

Credit card providers often approve virtual credit cards faster than physical cards, as they don’t require production and delivery time. Besides, you also have the flexibility to set spending limits with virtual cards, whereas only selected issuers offer spending limit settings for physical cards.

Factors to Consider While Choosing a Physical Card vs Virtual Card

Consider the following factors to ensure your choice meets your unique financial needs and preferences:

1. Spending Habits

Take a moment to reflect on how you tend to spend your money. Do you find yourself leaning more towards online shopping or traditional brick-and-mortar stores? For those who enjoy the convenience of online shopping, virtual credit cards can be a better choice, as they seamlessly work with digital platforms. On the other hand, a physical credit card might be more suitable if you savour the experience of browsing through stores.

2. Financial Requirements

Evaluating your credit requirements and deciding if having a spending limit is essential for you is important. Physical credit cards typically offer flexibility with credit limits compared to virtual cards, which may have stricter usage limitations. If access to a larger credit line is a top priority, a physical card might be a better fit.

3. Convenience

Consider which card type provides easier access and usage, considering your lifestyle and device usage habits. If you’re constantly on the go and rely heavily on your smartphone or other digital devices, a virtual credit card may offer the accessibility you crave. Alternatively, a physical credit card could be the more convenient choice if you’re more comfortable with a tangible card or prefer not to rely on technology for your financial transactions.

In essence, there is no one-size-fits-all solution when it comes to credit cards. Ultimately, the choice between a physical card vs virtual card depends largely on individual preferences and lifestyles. Personal use often requires a mix of online and offline interactions. It makes the decision a matter of finding the right balance between simplicity and modern functionality.