Virtual Card

Virtual cards are digital-only cards issued by credit card companies and fintech firms through their apps. There's no need to wait for a physical card to arrive, and you can start using one within minutes of applying. Sumitomo Mitsui Card's Vpass app, Epos Card's virtual card, Kyash, and Revolut are among the prominent issuers.

Virtual cards come in two types: "disposable" and "fixed-number." Disposable types generate a new card number for each transaction, so even if a number is leaked, there's no risk of reuse. Fixed-number types use the same number continuously like a regular credit card, but since no physical card exists, they're immune to skimming. An increasing number of services also support contactless payments at physical stores when registered with Apple Pay or Google Pay.

Virtual cards are most powerful in online payment situations where security is a concern. Entering your primary credit card number on an unfamiliar e-commerce site or overseas service can be anxiety-inducing. Using a virtual card means that even if information is leaked, the impact on your primary card is isolated. The technique of using a virtual card for subscription free trial signups to prevent charges from forgotten cancellations is also widely known.

Note that virtual cards cannot be used for in-store IC chip payments or situations requiring a signature. There are also cases where physical card presentation is required at hotel check-in or for rental car deposits. Usage limits may be set lower than the primary card, so you should verify the ceiling before making large purchases. Virtual cards should be positioned as a supplementary tool for enhancing online payment security and used in combination with your primary payment method.