A virtual credit card is a unique one-time-use number that's generated by the issuer of your existing physical credit card. That way, if the card information is stolen, your entire credit card account isn't compromised because hackers can't reuse the number.
Online shopping remains very popular, but there are risks. Fortunately, there are ways to layer your security to reduce the risk of your account falling victim to data breaches or hackers. Using a virtual credit card is just one of these layers of defence.
This article lays out the differences between virtual cards and digital wallets, plus explains how to access your own virtual credit card.
Key Takeaways
- A virtual credit card is a single-use card number generated by your card issuer when you make an online purchase.
- Masking your true credit card number protects it from fraud.
- Virtual credit cards aren’t the same as virtual wallets, which store your actual credit card number for digital transactions.
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What are virtual credit cards?
A virtual credit card is a unique credit card number that's generated by your credit card issuer so that you can make an online purchase. It masks your true credit card number by creating a new number and expiration for each transaction, so the number used only works once. This keeps your account secure from data breaches, fraudulent use, and other compromises.
If you're concerned about your digital security, you'll naturally want to know if virtual credit cards are safe. Since they're only used once and not directly tied to your credit card, they're actually safer than using your true credit card number. The merchant never has access to your real credit card number, expiration date, or CVV code.
TD is the first Big Bank in Canada to offer true virtual credit card access. TD Virtual Card Numbers are available for most TD credit cards, including the popular TD First Class Travel Visa Infinite Card.
You may see the term "virtual credit card" used in other ways. Make sure to understand exactly how each product works.
Virtual prepaid cards
Some issuers, such as KOHO and Wealthsimple, offer virtual prepaid credit cards.
These products come with physical copies of the cards as well, but the physical and digital cards have different numbers, adding a layer of security.
Important: While your digital card has a different number from your physical card, it has a static number – unlike a true virtual credit card, where a new number is generated each time.
Instant card numbers
Credit card issuers may provide early digital access to card numbers so you can use your credit card online before it arrives in the mail.
Neo provides instant access as soon as you're approved. American Express offers instant access in the U.S., and some Canadian cardholders report that this feature is available here, too.
Important: Unlike KOHO and Wealthsimple, these virtual card numbers match your physical card.
Digital wallets
Digital wallets, like Google Wallet, offer digital access to a variety of credit cards, as well as rewards cards, boarding passes, and more.
This is extremely useful but distinct from a true virtual card because a digital wallet stores your actual card number. However, select banks may allow you to use a virtual card number to keep your information secure.
How virtual credit cards work
When you shop online, you can use your virtual card instead of a physical credit card. Your credit card issuer will generate a single-use number for the transaction. This way, if the merchant is hacked, your credit card won't be compromised.
As mentioned, a popular alternative is prepaid digital cards that have separate numbers from physical prepaid cards. KOHO currently offers the best prepaid card in Canada, and has several attractive options for virtual card art:
Virtual credit card vs. digital wallet
We should be clear – even though the terms are often used interchangeably, a virtual card is not the same as a digital wallet.
A digital wallet is a place to store any number of personal finance cards, such as credit cards, debit cards, and rewards program cards. They can also carry items such as airline boarding passes and even vaccination records.
Unlike virtual card numbers, the card numbers in your digital wallet are the same as the ones on your physical cards.
A virtual card has its own unique number, different from your physical credit card, even though it's tied to the same account. When you make an online purchase, the merchant never has access to your actual account number – they only see the virtual credit card number generated specifically for that transaction.
Both of these products are designed to offer an extra layer of security; they just protect your account in different ways.
How to get a virtual credit card
If you're looking for a traditional credit card that also includes access to unique virtual credit card numbers, your best option is a TD Bank credit card.
When shopping online through Google Chrome, Android, or iOS, you can make secure purchases using a TD Virtual Card Number. A uniquely generated number will protect your actual card data.
If your focus is fast access rather than extra security, consider an issuer that will give you an instant card number on approval.
All of Neo Financial's cards give approved users access to their virtual card immediately. However, this virtual card uses your actual card number, not a unique number. When you activate a new Neo card, your virtual card number will automatically update to match.
If you're looking for a prepaid credit card with a virtual version, the KOHO Essential Mastercard or Wealthsimple Prepaid Mastercard are two top options.
Wealthsimple offers instant approval and near-instant access to your virtual credit card. Your physical card will be sent to you in the mail.
There are also a few banks and issuers that provide virtual credit cards only for commercial and/or business clients. RBC, for instance, has an RBC Commercial credit card program that allows clients to create single or multiple-use virtual credit cards for their employees.
American Express also provides Virtual Account Numbers (VANs) for corporate customers. These are unique virtual card numbers that can be assigned to employees.
And don't forget – even if your credit card issuer doesn't offer a virtual credit card, you almost always have the option of adding it to a digital wallet.
Pros and cons of virtual credit cards in Canada
As you can probably guess, there are benefits and drawbacks to using virtual credit cards. Here are some things to keep in mind:
- You can often begin using the virtual card as soon as your account is opened
- Your account is more secure when you're shopping online
- You don't have to worry about data breaches when using the card
- You can set spending limits
- You can still enjoy credit card rewards, track your spending, and enjoy purchase protections
- You can't use virtual cards for in-store purchases (but you can use your mobile wallet)
- Only select financial institutions/issuers offer virtual credit cards
Who offers virtual credit cards in Canada?
While almost every issuer's cards will have a virtual version generated when they're added to your Google Pay, Apple Pay, or other digital wallets, most don't allow you to generate your own virtual credit cards on demand, with the exception being TD.
There are a few prepaid digital cards that have separate numbers from their physical counterparts, but they don't generate one-time use numbers the way a true virtual credit card does.
And, of course, you can access any Neo Financial credit card virtually – but it's the same number as your physical card.
Finally, don't forget that you can use a digital wallet to access almost any other credit card.
Since TD and Neo offer multiple options, we've highlighted only our top picks here:
| Credit card | Annual fee | Rewards | Special features |
|---|---|---|---|
| TD Aeroplan Visa Infinite Privilege Credit Card | $599 | * 2 points per $1 spent on Air Canada * 1.5 points per $1 spent on eligible gas, electric vehicle charging, groceries, travel & transit and dining * 1.25 points per $1 spent on all other purchases | * Plenty of Air Canada travel perks * Unlimited Maple Leaf Lounge access |
| KOHO Essential Mastercard | $48 | * 1% cash back on groceries, restaurants, and transportation | * Earn bonus rewards at select merchant partners * Low 1.5% foreign transaction fee on non-CAD purchases * Earn 2% interest on your balance |
| Wealthsimple Prepaid Mastercard | $0 | * None | * No foreign transaction fees * Earn up to 2.25% interest on your balance |
| Neo World Elite Mastercard | $125 | * Average of 5% cash back at partner retailers * 5% cash back on groceries, up to $1,000 spent monthly * 4% cash back on recurring bills, up to $500 spent monthly * 3% cash back on gas and EV charging, up to $1,000 spent monthly * 1% cash back everywhere else | * Earns up to 5% back with retail partners * Redeem cash back whenever you like |
TD virtual credit cards: TD Aeroplan Visa Infinite Privilege Credit Card
×3 Award winner 
TD just became the first traditional bank in Canada to include virtual credit cards with their impressive credit card lineup. The best TD credit card (that also includes a virtual card) is the TD Aeroplan Visa Infinite Privilege Credit Card, well known among Air Canada loyalists.
You'll earn 2 points per $1 spent on Air Canada, and 1.5 points per $1 spent on popular spending categories like groceries, gas, EV charging, travel, transit, and dining. All other purchases earn you 1.25 Aeroplan points per $1 spent.
Koho virtual card: KOHO Essential Mastercard
$80 GeniusCash + Up to 1% cash back on purchases + 2% interest on your balance.*
The KOHO Essential Mastercard is a top prepaid credit card in Canada, with a number of useful features. First, you'll earn cash back on all your spending, including:
- 1% cash back on groceries, restaurants, and transportation
You can also earn bonus rewards when shopping with KOHO merchant partners, which can boost your earn rate and help you save even more.
Once you have a KOHO account, you can subscribe to KOHO Earn Interest. This service turns your KOHO account into a high interest savings account where you'll earn 2% interest on your account balance.
Wealthsimple virtual card: Wealthsimple Prepaid Mastercard
The Wealthsimple Prepaid Mastercard keeps things, well, simple. While it doesn't earn any annual rewards, it's a great card for making purchases in currencies other than Canadian dollars, as it doesn't charge foreign exchange fees.
You can also earn up to 2.25% interest on your balance. Your exact rate will vary depending on whether you have set up direct deposit and how much money you have with Wealthsimple.
Neo virtual card: Neo World Elite Mastercard
While all Neo cards give you access to a virtual credit card that can be added to your digital wallet, the Neo World Elite Mastercard is the best of the bunch. Users earn an average of 5% cash back from Neo partners, and this can be redeemed at any time. The card also comes with premium World Elite benefits, like concierge service and exclusive event access.
Keep in mind that Neo doesn't generate a single-use virtual credit card. However, if you choose a Neo credit card, you can freeze and unfreeze the virtual card in your wallet at any time, or even deactivate it.
FAQ
How do I get a virtual credit card?
You can access true virtual credit card numbers when you get a TD credit card, or you can get a digital version of your prepaid credit card from KOHO or Wealthsimple. Similarly, Neo gives virtual access to your credit card while you wait for it to arrive in the mail. Some banks also offer virtual cards for corporate clients.
Are virtual credit cards a good idea?
Yes, since true virtual cards use a randomly generated card number that's only valid for that one transaction, they provide an excellent way to protect your unique credit card details. Adding layers of security to online purchases is always a good idea.
Are virtual credit cards safe?
Yes, virtual cards are very safe. In fact, it's safer to use a virtual credit card for online transactions since the issuer generates a one-time-use number in order for the transaction to process. This way, merchants don't get your actual card details.
Are there any instant virtual credit cards in Canada?
When you apply for a new credit card, many issuers give you immediate access to a virtual card that you can add to your digital wallet. However, if you want a truly virtual card with a one-time use number, you'll typically have to use a prepaid card, like the KOHO Essential Mastercard or Wealthsimple Prepaid Mastercard.
What banks offer a virtual card?
Most big banks don't offer virtual credit cards. Instead, they might allow you to connect your credit card account to your digital wallet, which stores your exact credit card details. However, TD just announced it's offering virtual credit cards with its lineup of traditional credit cards.
Can I get a virtual credit card from RBC?
RBC offers a true virtual credit card for commercial or business purposes – unfortunately, you can't get a single-use virtual card for a personal credit card account. You can add your RBC credit card to your digital wallet, though.
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