What Is a Virtual Credit Card Number?

Shopping online is easy and fast. But when you type in your credit card number on a website, you share a very important secret. If that website is ever hacked, bad people could steal your card information. This is why many people use a virtual credit card number.

A virtual credit card number is a temporary card number that you can use for online shopping. It is not the same as your real credit card number and is sometimes even created for one-time use. This credit card number is linked to your actual credit card account. This extra layer of protection helps protect your money and personal information when you shop online. 

In simple terms:

• A virtual credit card number acts like a shield for your real card.
• You use this number for online payments, and your real card number stays safe and hidden.
• A virtual number lowers the risk of fraud (online theft) and keeps you secure.

How a Virtual Credit Card Number Works

Think of a virtual credit card number like wearing a raincoat on a stormy day. Despite the down pour, your clothes stay dry under the coat. A virtual credit card number keeps your real card safe in the same way.

When you ask your bank or card provider for a virtual number, they do not give you a whole new credit card. Instead, they give you a special, random number. This number is unique and linked  to your main account.

When you shop online, you use this new, temporary number instead of the numbers on your plastic card. The store gets the temporary number, but they never see your actual, permanent card details.

Key Points

• You get a special temporary card number.
• It works only for online or phone payments.
• Your bank links it to your real card and pays the bill with your money.
• You can set a spending limit or time limit on the virtual number.
• If someone steals this temporary number, they cannot use your real card afterwards.

Many banks and fintech companies now offer this service. For example, the Neo Mastercard gives you instant digital access to your virtual card as soon as your application is approved.

Why Do People Use Virtual Credit Card Numbers?

Virtual cards offer several big benefits that make online shopping safer and easier.

1. Better Security

When you use your real card online, you are sharing your financial identity. If that website gets hacked, your real number, expiration date, and security code could be stolen.

If you use a virtual number, even if a website loses that information, the thief only gets the fake, temporary number. They cannot use it to access your main account or steal your money, because the bank cancels or limits the temporary number.

According to the Government of Canada, consumers should protect their credit card numbers to avoid fraud and scams.

2. Safer Shopping on New Websites

Have you ever bought something from a company you had never heard of? If you are buying from a new store and do not fully trust it, a virtual number helps protect you. If the company turns out to be unsafe, you just delete the virtual number.

3. Spending Control

Virtual cards give you the power to set limits. For example, if you are buying a $50 shirt, you can set the virtual card limit to exactly $50. If someone later tries to charge $500 to that number, the charge will not go through. This is a great way to manage subscriptions and avoid surprise bills.

4. Easy to Cancel

If the virtual number gets leaked, you can instantly delete it through your banking app. You do not need to call your bank, wait for a fraud investigation, or wait 7 to 10 days for a new physical card to arrive in the mail. You just delete the temporary virtual number and create a new one.

Where Can You Get a Virtual Credit Card Number?

Not every bank offers virtual card numbers. But many digital-first card providers and financial technology companies (fintechs) do.

Virtual credit cards and their respective numbers can also be accessed via mobile wallets like Apple Pay and Google Pay.

Can You Use a Virtual Credit Card Number Everywhere?

Virtual card numbers are designed for digital use. They work well for:

• Online stores
• Phone payments
• Subscription services (like Netflix or Spotify)

Virtual card numbers usually do not work in physical stores because the store needs a chip or magnetic strip from a physical plastic card. The only exception is if you link the virtual number to a digital wallet on your phone, like Apple Pay or Google Wallet.

How to Create a Virtual Credit Card Number

Each bank or card provider has different steps, but most follow this pattern:

1. Log in to your online banking app or credit card app.
2. Tap a button like “Virtual Card” or “Create Temporary Number.”
3. Choose the limits you want (i.e how much money can be spent).
4. The system gives you a temporary number.
5. Use that number online just like a normal card.

That’s it! Some apps let you create a brand-new number for every single purchase you make.

Are Virtual Credit Card Numbers Safe?

Yes, they are very safe. They are made specifically for secure payments. They are often safer than using your real card number online.

Banks use strong security tools to protect these payments, such as:

• Encryption: This is like scrambling your card number into a secret code. If a hacker intercepts the information, they can’t read it. Only the bank can unlock the real information.
• Fraud Detection: The bank monitors unusual activity and will shut down the virtual number if it detects suspicious spending.
• Two-factor Login: You often need a password plus a temporary code on your phone to set up the number.

Best Times to Use a Virtual Credit Card Number

Use a virtual number when:

• Shopping on a new website you don’t fully trust.
• Signing up for a free trial subscription (so you can easily cancel the number later).
• Paying online while traveling and using public Wi-Fi (like in hotels or airports).
• Setting up recurring bills where you need a strict spending limit.

When You Should Not Use a Virtual Number

Sometimes, a virtual number may not work well because the company needs to see your real, physical card.

Avoid using a virtual number when:

• A hotel needs your real card for check-in to hold a security deposit. 
• A car rental company needs to see your physical card and match it to your ID.
• A store only accepts in-person cards and does not have tap/digital wallet payments enabled.

In these cases, use your regular card.

Do Virtual Credit Card Numbers Cost Money?

Most virtual credit card numbers are free to create. Some card providers include them as a standard, helpful feature on your account. Always check your bank’s terms before you start using one.

You can explore and compare our best no annual fee credit cards to find the one that fits your needs.

Virtual Credit Cards in Canada

Virtual credit cards are growing fast in Canada. Fintech companies and some major banks now offer them to make online payments safer for Canadian consumers. Below are some of the benefits and downsides of virtual credit card numbers.

Benefits of Virtual Credit Card Numbers

Downsides of Virtual Credit Card Numbers

Final Thoughts

A virtual credit card number is a smart tool for safe online shopping in Canada. It protects your real card, stops fraud, and gives you strong financial control. If you shop online often, it can help you feel safe and secure with every click.