The lowdown.
What are instant virtual credit cards?
Instant virtual credit cards are digital cards issued immediately after approval, allowing cardholders to make online and mobile payments without waiting for a physical card to arrive. These are particularly useful for those who need urgent access to a credit card for online shopping, travel bookings, or bill payments.
Simple and straightforward process.
How can I get a virtual credit card?
Obtaining a virtual credit card in Australia usually involves applying for a standard credit card or account that offers virtual card functionality. The process typically includes:
- Applying for an eligible credit card. Some banks and providers issue virtual cards automatically upon approval.
- Generating a virtual card. This can be done via internet banking or a mobile app, where you receive a digital card number, expiry date, and CVV.
- Adding it to a mobile wallet. Most virtual cards can be linked to Apple Pay, Google Pay, or Samsung Pay for in-store contactless payments.
Some providers also offer single-use virtual cards for added security when shopping online.
Expert opinion
How secure are virtual credit cards?
David Boyd, co-founder of Credit Card Compare, shares his insights on the growing adoption of virtual credit cards:
Virtual credit cards provide an added layer of security that’s particularly useful for online shoppers. Unlike physical cards, they can be generated instantly and, in some cases, used for single transactions to minimise fraud risks.
However, their limitations, such as restricted ATM access and acceptance issues with some merchants, mean they’re not yet a full replacement for traditional credit cards. Consumers need to weigh up whether the benefits align with their spending habits.
Which bank or credit card gives you a virtual card?
Several Australian banks and financial institutions provide virtual credit cards, including:
- CommBank. Offers instant digital cards via the CommBank app for approved customers.
- Westpac. Provides digital card access through the Westpac app.
- NAB. Issues virtual cards linked to Apple Pay and Google Pay.
- ANZ. Allows customers to use digital wallets with eligible credit cards.
- Fintech providers. Companies like Airwallex, Revolut, and Wise offer virtual debit cards for secure online spending.
Availability and features vary between providers, so it’s worth checking if virtual card functionality is included before applying.
What are mobile wallet cards?
Mobile wallet cards are digital versions of credit, debit, or prepaid cards stored on a smartphone or smartwatch for contactless payments. They work through mobile payment platforms like Apple Pay, Google Pay, and Samsung Pay, allowing users to tap and pay at compatible terminals without needing a physical card.
Mobile wallet cards offer added security through encryption and biometric authentication, reducing the risk of fraud compared to traditional card payments.
Expert opinion
The benefits and drawbacks of a virtual credit card
Virtual credit cards offer unique advantages but also come with certain trade-offs. Andrew Boyd, co-founder of Credit Card Compare, breaks down the key benefits and potential drawbacks:
“Virtual credit cards are an excellent tool for security-conscious consumers, but they aren’t a one-size-fits-all solution. If you frequently shop online or want better fraud protection, they’re worth considering.
However, if you need a card for in-person transactions beyond mobile payments, a traditional credit card might still be necessary.”
What about business and corporate virtual credit cards?
Businesses in Australia can benefit from virtual credit cards as a way to streamline payments, manage expenses, and enhance security. Virtual corporate cards are commonly used for:
- Employee expenses. Issuing virtual cards with spending limits for travel, subscriptions, or business purchases.
- Supplier payments. Generating single-use virtual cards to pay vendors securely.
- Fraud prevention. Reducing the risk of card details being compromised by using disposable virtual cards for online transactions.
Many banks and fintech providers offer virtual business credit cards with features like real-time tracking, automated expense reporting, and integration with accounting software.
