A virtual credit card is a digital version of a credit card that you can use for the same kinds of payments as traditional, plastic cards. But the virtual card's details are stored online or in an app, which means you could use it even before a new plastic card arrives in the mail.
Any credit card that is stored virtually in an app or online account is technically a type of virtual credit card. This includes cards stored in Apple Pay, Google Pay and other mobile wallets.
But there are 3 main types of virtual credit cards you can get in Australia, each with different features, benefits and options.
1. Instant virtual credit cards for personal use
These are credit cards you can apply for and start using as soon as you're approved.
Usually, you'll get a digital copy of the card number, expiry date and CVV that you can use to pay online or over-the-phone. You can also shop in-person at any store that accepts contactless payments by adding the card to a mobile wallet.
Some accounts also come with a plastic credit card, but a few cards are totally digital.
What banks give you an instant virtual card in Australia?
Bankwest, Bendigo Bank and Westpac are among the banks that offer virtual credit cards you can start using once you're approved. Here are some more details on different instant, virtual credit cards you can get in Australia, including whether they are virtual-only or send you a physical card as well.
Bankwest credit cards can be set up through the bank's app. You can then use the card number and other details to make payments or link it to a mobile wallet.
Latitude credit cards can be set up virtually through the Latitude app, then linked to your Apple or Android mobile wallet so you can use it before you get the physical card.
This completely virtual credit card is stored on the MONEYME App and can be used with Apple Pay or Google Pay, anywhere Mastercard is accepted (both online and offline).
A completely virtual credit card that charges no interest, with a flat monthly fee instead. You can start using it once your application is approved, anywhere Mastercard is accepted.
Most of these credit cards come with a virtual card that you can use before you get the physical card. But even the completely virtual cards can be used for most spending, as they are Mastercard or Visa cards.
💡 Tip: Mobile payments made up 35% of card transactions in the June quarter of 2023. And data from the Reserve Bank of Australia shows this is a growing trend. So if you want to make virtual payments most of the time, it's worth comparing app store reviews as well as credit card features, rates and fees to help you can choose a card.
2. Mobile wallet cards
When you add a card to Apple Pay, Google Pay or another mobile wallet, it creates a virtual "copy" of your credit card that you can use to make payments from the app.
These days, transactions mainly just involve tapping a card or a mobile device that securely stores card details.”
Mobile or digital wallets typically create a virtual account number that's used for payments, instead of using the numbers printed on your plastic credit card. This feature – along with thumbprint or other ID authentication – helps keep the account safe.
Example: A virtual account number in Google Pay
In the Google Pay smartphone app, you'll see an image of your card without the numbers, along with some encrypted details of your virtual account number that's used when you tap to pay at the checkout.
💡 Tip (for Apple Pay): If you need to replace a credit card that's been added to Apple Pay, the app will automatically update the details. This can happen before the physical credit card arrives in the mail, although you would still need to activate the card to start using it.
3. Business and corporate virtual credit cards
The first virtual credit cards to be widely used in Australia were for business and corporate use. These accounts give businesses a way to manage finances without issuing lots of traditional credit cards to employees.
Some business virtual cards (including expense management cards) also let you generate virtual card and account details for payments, either for single-use or ongoing spending that could be restricted to certain types of transactions. These features mean virtual cards can give you more flexibility and a greater level of financial transparency compared to traditional business and corporate credit cards.
Card
Features
AirPlus Virtual Cards
Central company account with a monthly invoice for all transactions
Customisable statements
Generate instant, virtual Mastercard credit card numbers for payments
Limit virtual card numbers for a specific purpose, currency, spending limit and time period
American Express Go
Program administrators can issue virtual cards for employees directly through the American Express Go portal
Spending is through an app, rather than with a traditional credit card
Employees can start using virtual cards as soon as they are issued
Customisable fields including cost centres and spending limits.
Reports and reconciliation details through the portal
CommBank virtual cards for businesses
Choice of virtual cards for travel or virtual cards for procurement
Unique card numbers for different transactions, linked back to the central account
Payment options: restrict to single-use, set date range, dollar value or individual merchant
Integration with finance systems
Weel
Unlimited virtual corporate cards linked to one account
Cards can be issued instantly
Customisable limits based on merchants and/or transaction values
Real-time data feeds for transactions and budgets.
Automatic recording of merchant data, GST and GL codes for each transaction
HSBC Virtual Card
Generates unique account and card numbers for every transaction
Real-time management of cards
Customisation for cards, including transaction-level control
Online management and reporting tools
Volopay
Generates instant virtual cards for online spending, vendor payments and subscriptions
Option of physical Visa cards for employees
Domestic and international money transfers
Instant transaction data for the person using the virtual card, the budget owner and the company administrator
Budget and spending customisation
Up to 2% cashback on foreign currency transactions
Preload funds and allocate to different virtual cards or physical cards
Apply for up to $100,000 credit
Westpac Virtual Card
Virtual card with a 16-digit card number, expiry date and CVV (like a traditional card)
Online processing
No cash-out or cash transfer function
Accounts can be set up by business or individual departments
Range of reporting and integration options
As well as banks and traditional credit card issuers, there are business and corporate virtual cards from a mix of other companies that specialise in business solutions. This gives you more options if you're looking for virtual cards for work.
What about prepaid virtual cards? While not technically "credit cards", you can get prepaid digital Mastercard and Visa cards in Australia. Usually, these are gift cards that you buy pre-loaded with a set amount of money and can use until that amount has been spent.
Pros and cons
Pros
Instant access. Some virtual cards can be used as soon as your application is approved, or when you're waiting for a new plastic card in the mail.
Data encryption. All virtual card apps and digital wallets encrypt your personal and financial data to help keep it safe.
Mobile payments. With a virtual credit card, you can leave your house with nothing more than your smartphone or device. And you can shop online in just a few taps.
Relies on technology working. You won't be able to use your virtual card if your phone battery goes flat or if you don't have an internet connection.
May not be accepted when you're travelling. Hotel bookings that require a credit card at check-in won't typically accept a virtual card. And if you're travelling to places where contactless payments aren't available, or don't have mobile roaming, you won't be able to use the card.
Potential debt. Getting a virtual card more quickly than a plastic credit card could mean you spend less time thinking about how you'll manage your money and repayments.
How can I get a virtual credit card?
It may be faster to start using a new virtual credit card than one you need to wait for in the mail, but you'll still need to apply and get approved first. This is basically the same as applying for any regular card.
Depending on the virtual credit card, you might notice a few differences to other applications, especially if it's an "instant" virtual credit card. This is because the card issuer needs enough details to verify that someone is eligible to be approved.
For example, with the MONEYME Freestyle Virtual Card, you'll need to upload bank statements as part of the application. And with the Westpac Flex Card, you need to log in to your bank account during the application.
What happens if you lose your phone? Report your phone as lost or stolen as soon as you can by logging in to your account. From there, you'll be able to lock, track or even erase your phone details so that no one can access your private information – including any digital or virtual cards stored on it.
Frequently asked questions
Virtual cards are as secure as a traditional credit card – and sometimes could be even more secure because the virtual card numbers can be changed for each transaction. Every virtual card has different features, but some of the key security options include:
Unique card numbers. Some virtual cards let you generate a specific card number for each transaction, or for very specific types of transactions. This makes it very hard for a fraudster to use the card for unauthorised transactions.
Dynamic CVVs. Traditional credit cards come with a 3- or 4-digit CVV or CVC number that you need to make payments online or over the phone. While that number always stays the same on a physical card, virtual cards can offer CVVs that change regularly, or per transaction.
Encrypted details. Both online and contactless payments made from a virtual card use encrypted data so that the account details are protected.
Zero liability and fraud monitoring. Both traditional and virtual credit cards in Australia offer zero liability policies so you can get your money back from fraudulent transactions. Most also offer fraud-monitoring technology to flag any suspicious activity.
Most of the time, you can use a virtual credit card with any business that accepts traditional credit card payments. But there are a some situations when a virtual card may not be accepted, including:
When a payment terminal or system isn't set up for contactless payments
If a hotel booking requires a credit card and/or other ID when you check-in
If you need to present the card as proof of purchase
In these situations, a virtual card either won't work when you try to pay or won't show the details that are needed by the business (such as a hotel). So it's a good idea to keep your plastic card handy – or to check if your virtual card will be accepted before you leave with only your phone.
Finder maintains a database of every credit card we can find and as of 31 January 2024 we've found 6 providers that offer virtual credit cards for personal spending. These are: Bankwest, Bendigo Bank, Wizit, Latitude Financial, MONEYME and Westpac. Between them, there are over 20 virtual credit cards on offer.
A major disadvantage is that it relies on technology working. If your mobile phone loses power, you won't be able to pay with a virtual credit card, for example. A virtual credit card also isn't suitable if you need to present your card for proof of purchase or as security for hotels or car hire.
In comparison, a traditional credit card can be used even if a payment machine's contactless reader isn't working, and is often preferred for car hire, hotel bookings and proof of purchase. So, it's ideal to have more than one payment option available.
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Written by
Amy Bradney-George
Amy Bradney-George was the senior writer for credit cards at Finder, and editorial lead for Finder Green. She has over 16 years of editorial experience and has been featured in publications including ABC News, Money Magazine and The Sydney Morning Herald. See full profile
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