How do virtual credit cards work and which banks offer them?
Executive summary
Virtual credit cards are temporary, digital card numbers tied to an underlying credit or bank account that function like a normal card for online and sometimes in‑person payments, and they’re used widely to tighten controls, reduce fraud, and simplify reconciliation for businesses and consumers [1] [2] [3]. A mix of legacy banks, card networks, and fintech platforms issue virtual cards directly or via partnerships — examples cited in industry guides include Capital One, Citibank, American Express, Chase, J.P. Morgan, U.S. Bank and many embedded‑finance partners that route issuance through banks and networks [4] [1] [5] [6] [7].
1. How virtual credit cards work — the mechanics
When a virtual card is created the issuer generates a 16‑digit card number, expiration date and security code that are linked to an existing credit line or funding source but are distinct from the account’s physical card number; those details can be single‑use or time‑limited and can be restricted to a merchant, amount, or date range to reduce unauthorized reuse [2] [5] [1]. Technically the number routes through the same Visa/Mastercard/AmEx networks as plastic cards and can be processed like other card transactions, and some virtual cards can even be pushed into mobile wallets for tap‑to‑pay [2] [8].
2. Who issues virtual cards — banks, networks, and fintechs
Issuance comes from three overlapping camps: traditional banks and card issuers that add virtual numbers to existing consumer or corporate products, card‑network partners (Visa/Mastercard/AmEx) and fintech platforms that build issuance stacks and work with sponsor banks — examples in industry reporting include Capital One and Citibank for consumer virtual numbers, American Express and Chase for merchant‑specific or corporate offerings, and J.P. Morgan, U.S. Bank and Huntington for commercial virtual card programs; Stripe, Galileo and Extend are examples of fintech infrastructure that issue cards through bank partnerships [4] [1] [3] [7] [6] [8] [9].
3. Typical use cases and operational benefits
Companies use virtual cards for one‑time supplier payments, travel and expense control, and embedded payments where instant issuance speeds procurement or gig economy flows; the main benefits reported are tighter spending controls, improved visibility and faster supplier payments compared with checks, with the added security of never exposing the underlying account number [3] [2] [1]. Platforms emphasize API integration so virtual cards can be generated programmatically and reconciled automatically into ERP and procurement systems, delivering operational efficiency beyond manual email‑based number exchanges [2] [10].
4. Tradeoffs, supplier friction, and compliance
The seller side isn’t neutral: suppliers incur card acceptance fees and may face operational friction if they must manually reconcile virtual‑card remittances or deal with multiple issuers, adding complexity to accounts receivable workflows [5]. Issuers and platforms also perform KYC and link funding sources before issuing cards, which introduces onboarding friction for some users and requires institutional compliance [11]. Banks and vendors frame virtual cards as cost‑saving and fraud‑reducing, but acceptance costs and reconciliation burdens partially shift merchant costs and work upstream in the payment chain [5] [12].
5. How to get one — practical pathway and caveats
For consumers or businesses seeking virtual cards the usual route is to check the existing credit card issuer or bank app (many issuers surface a “virtual card” or “virtual numbers” option) or to enroll with a payments platform/issuer partner that offers instant issuance via dashboard or API; larger customers often launch programs through their bank or through partners like Stripe Issuing or Extend that route issuance through sponsor banks [4] [6] [2]. Reporting on who “offers” virtual cards lists many mainstream banks and card networks but stops short of a comprehensive catalog, so prospective users should verify availability and feature differences (single‑use vs merchant‑specific, wallet support, reporting) with their own bank or payments vendor [4] [2] [12].