A virtual credit card or online credit card is a relatively new phenomenon that is currently becoming more and more widespread. We show you what is important with this digital form of payment and compare the best providers!
The best virtual credit cards in Germany in comparison
Hanseatic Bank GenialCard
- 0 Euro annual fee
- Free withdrawals abroad*
- Free payments worldwide**
- Repayment in small, flexible installments
TF Bank Mastercard Gold
- Aktion: 30 Euro Bonus
- 0 Euro Jahresgebühr
- Weltweit gebührenfrei bezahlen
- Reiserücktrittkostenversicherung inkl.
- Auslandskrankenversicherung inkl.
Barclays Visa
- Deal: 40 Euro bonus
- Free credit card
- Free cash withdrawals worldwide
- Free payments worldwide
- Free loan up to 2 months
Bank Norwegian Visa credit card
- Promotion: 15 Euro welcome bonus
- Free credit card – permanently without annual fee
- Free cash withdrawals worldwide
- Worldwide free payments – no foreign transaction fee
- Attractive travel insurance included
awa7 Credit Card
- 0 Euro annual fee
- Pay worldwide free of charge*
- Withdraw cash abroad free of charge**
- Repayment in small and flexible rates
- Up to 2,000 euros can be paid out immediately
Basically, a virtual credit card is exactly the same as a normal credit card, but without a physical form. In other words, a virtual credit card is not a plastic card that you can carry in your wallet, but only a data record that can be used to make payments. In our reisetopia credit card comparison, we present the best credit cards – with real advantages and no hidden costs.
Inhaltsverzeichnis
- What is a virtual credit card?
- Why do virtual credit cards exist at all?
- What are the advantages of a virtual credit card?
- What are the disadvantages of a virtual credit card?
- What else is there to know about virtual credit cards?
- How do I apply for a virtual credit card?
- Can the virtual credit card be used immediately?
- Virtual or real credit card – which is the better choice?
- Our conclusion on virtual credit cards
What is a virtual credit card?
If you are looking for a suitable credit card, you may stumble across the term “online credit card” or “virtual credit card”. Sometimes this card model is also offered in combination with a current account or a business account. But what exactly is it?
An online credit card is usually a debit credit card that consists solely of data. This means that only the following elements make up a free online credit card:
- Name of the cardholder
- Card number
- Expiry date
- Security code
💡 Please note: : This type of credit card works exclusively on a credit basis, which means that it must be topped up before use. This means that you do not spend more money than you actually have when making a payment.
This also means that it is possible to apply for an online credit card without proof of creditworthiness. Therefore, even those who only have a negative credit rating can access such a credit card.
The Wallester Business Visa is very well suited as a virtual credit card, which is also suitable for business people. The card is free of charge and suitable for companies of all sizes.
Once you have topped up your online credit card, you can shop online without any problems. However, there are a few things to bear in mind, which we will explain to you in this guide.
Why do virtual credit cards exist at all?
When you think about the concept of a virtual credit card, your first thought is certainly: Why do online credit cards exist at all?
It obviously has one major disadvantage: it cannot be used for payments in the analog world. A card device is difficult to operate without plastic, which is why normal card payments with an online credit card are difficult.
However, there is still a reason why virtual credit cards make sense. Namely, such a card appeals to a very special target group or fulfills a special purpose.
If you simply want to pay online, for example when shopping online, a virtual credit card can be perfect for this. In addition, all online credit cards are prepaid credit cards, so you can only top them up in advance.
There is no free credit through monthly billing. This means you always have full cost control over your spending and can keep an eye on everything. There is also another important aspect: as there is no credit check for the virtual credit card, you receive it or the data record just a few minutes after applying and can pay directly.
What are the advantages of a virtual credit card?
As already mentioned, a virtual credit card is just a data record – due to these characteristics, online credit cards have a lot of advantages, which we would like to show you in detail below.
All the advantages:
🔐 High security with online credit cards
✅ No credit check for virtual credit cards
📝 Quick application for online credit cards
High security with online credit cards
The lack of a plastic card sounds like a weakness of the virtual credit card at first. However, this can also be an enormous advantage, as a plastic card offers the possibility of being stolen.
With a data record, you can simply store it digitally or physically and use it whenever necessary. However, it is much more difficult to steal this than a physical card that you have in your wallet.
Moreover, even if the data on your virtual credit card is stolen, it is difficult or impossible to cause major damage, as only the credit on the card account can be spent anyway. Finally, it is a free online credit card that follows the model of a prepaid credit card.
No credit check for the virtual credit card
What is an advantage in terms of theft can also be seen as a general strength of the virtual credit card. It is not possible to spend more than you actually have and the risk of falling into debt is practically non-existent.
With normal credit cards, it is common for you to receive a loan if you don’t pay your credit card bill, which then incurs high interest and has to be paid off. This risk does not exist with a free online credit card with no credit rating such as the Trade Republic credit card.
Also because it is basically a debit credit card, you do not have to worry about a possible credit check when applying for a credit card without Schufa.
All models offered by banks as free online credit cards are issued directly and without a credit check. This is of course also an advantage if your credit rating is not quite perfect or you do not want to burden your Schufa score with an additional credit card.
In this context, it should also be mentioned that many virtual credit cards are perfect for young people. The card can be applied for from the age of 14. This makes the credit cards perfect as pocket money accounts to which parents can simply transfer money. For example, young people can easily store online or buy other things that can only be paid for by credit card without having to rely on their parents.
Quick application for online credit cards
Probably the biggest advantage of a virtual credit card is also one of the reasons why they exist at all. Due to the otherwise time-consuming production of a plastic card, it always takes a certain amount of time for a normal credit card to arrive at your home.
This is not the case with an online credit card, which arrives as a data record in your e-mail inbox just a few minutes or hours after you apply and can then be used.
Combined with an efficient application via the video legitimization process, you can access your new digital means of payment quickly and easily. Most providers require the following to legitimize you via video:
🪪valid ID document (ID card or passport)
📷Working camera and microphone
As soon as your identity has been verified, you can access your virtual credit card.
Trade Republic Kreditkarte
- 0 Euro Jahresgebühr
- Kostenlose Zahlungen weltweit
- Kostenfreie Bargeldabhebungen weltweit
- 1 Prozent Saveback – auf Kartenausgaben
N26 Mastercard
- 0 Euro Jahresgebühr
- Kostenfreie Zahlungen weltweit
- Kostenfreie Bargeldabhebungen im Euro-Raum
- Kostenloses Girokonto inklusive
bunq Kreditkarte
- 0 Euro Jahresgebühr
- Währungsumtausch in der App
- Smartes Mobile-Banking und schnelle Kontoeröffnung
- Apple Pay und Google Pay
Revolut Debitkarte
- Aktion: 10 Euro Willkommensbonus
- 0 Euro Jahresgebühr
- Wertvolle Punkte sammeln mit jedem Euro Kartenumsatz
- Weltweit kostenlos Bargeld abheben
Revolut Ultra
- Aktion: 10 Euro Willkommensbonus
- 1 RevPoint für jeden Euro Umsatz sammeln
- Unbegrenzter Lounge-Zugang inklusive
- Kostenlose Abhebungen & Zahlungen im Ausland
- Premiumabos im Wert von über 1000 Euro
What are the disadvantages of a virtual credit card?
Unfortunately, virtual credit cards not only have advantages but also some weaknesses, which are particularly noteworthy when it comes to travel. This is certainly one of the reasons why they are not nearly as widespread as physical cards. We would also like to discuss these in detail.
❌ Limited application options
🌍 Practically useless when traveling
✈️ No travel benefits
Limited application options
Certainly the most obvious disadvantage of a virtual credit card is that it can only be used in a very limited way. Quite simply, you cannot use an online credit card anywhere where a physical card is required, i.e. in offline stores.
In concrete terms, this means that you have nowhere near the same options as with a conventional credit card. Especially when booking a hotel or rental car, often only credit cards with a credit limit are accepted.
It is also not possible to withdraw cash with a virtual credit card. It should also be remembered that a virtual credit card, like a prepaid credit card, cannot necessarily be used immediately. This is because it only works after topping up and with sufficient credit. So if you have no credit on the card, it will not work.
Practically useless when traveling
The use of online credit cards when traveling should also be mentioned. Unfortunately, this is probably one of the biggest disadvantages, as a virtual credit card is virtually useless when traveling.
The reason for this is that you generally cannot use them abroad like a real credit card. Most virtual credit cards are restricted to use in Germany and are therefore blocked for use abroad. This is of course disadvantageous when traveling.
Another bad thing in this context is that you cannot withdraw cash with a virtual credit card. This advantage when traveling, which many cards offer, cannot be provided by an online credit card either.
No travel benefits
Online credit cards generally do not offer the same travel benefits as physical credit cards. Typical travel benefits associated with credit cards include travel insurance, access to airport lounges and discounts on hotels and rental cars. If you want to take advantage of these benefits, you should opt for a physical credit card that offers special travel deals.
What else is there to know about virtual credit cards?
In addition to the advantages and disadvantages, there are a few other aspects to virtual credit cards that we would like to briefly address. First of all, there are the providers.
There are not too many providers of virtual credit cards, unlike prepaid credit cards, for example. The following providers currently have virtual credit cards in their portfolio in Germany:
- Revolut
- Entropay
- VIMpay
- YUNA TO GO
- Neteller
- Spendesk
- finway
- Kredu
Most of them are financial start-ups and smaller banks that are not necessarily particularly well known. And that’s hardly surprising. As you have already seen, a virtual credit card does not necessarily offer many advantages compared to a normal credit card. However, services such as Apple Pay or Google Pay show that a plastic card is no longer absolutely necessary.
Another interesting aspect of virtual credit cards is how they are topped up, as this works differently depending on the provider. With almost all models, however, you can top up by bank transfer and some models also offer the option of topping up via PayPal, credit card or other methods.
It can also be helpful to top up the card regularly and automatically by standing order. This way you can always be sure that there is enough money on your online credit card.
How do I apply for a virtual credit card?
Once you have decided on a virtual credit card, you can apply for your virtual credit card online. First of all, you have to apply for the card as normal with the provider of your choice.
The second step is to verify your identity. There are also credit cards that can be applied for without verification. However, if you want to apply for a credit card with verification, you will need the following documents:
🪪 Identification document (valid ID card or passport)
💻 E-mail address
📱 Mobile phone number if applicable
You can then activate the online credit card by creating an account with the respective provider. In some cases, you will also need the provider’s app, as you will be sent a PIN code for verification. You then enter this into your account and your virtual credit card is activated.
Can the virtual credit card be used immediately?
In some cases, the virtual credit card cannot be used immediately after the verification process. With some providers, you first have to transfer money to the instant online credit card in order to be able to use it without restrictions.
This is because some credit card providers first require you to undergo an identity check via video or Postident when making a deposit of over 100 euros. Certain requirements must therefore be met so that the online credit card can be used immediately.
This in turn can take some time, which is why a virtual credit card cannot usually be used immediately without restrictions. Depending on the purchase value, the process can also take 3-4 working days.
We therefore recommend choosing the Video-Ident procedure for identity verification, as this can be done quickly and conveniently online.
Virtual or real credit card – which is the better choice?
Many of you are probably wondering whether it’s worth applying for a virtual credit card or whether it’s better to opt for a normal credit card or prepaid credit card. The question is actually quite easy to answer, because there are really only two cases in which a virtual credit card makes more sense.
The first is when you need a credit card quickly and directly to make payments. No application for such a means of payment is as quick as a virtual credit card, as you receive the data directly.
The second case in which it makes sense to apply for an online credit card is if you want it for a minor, for example to make online shopping easier or to pay out pocket money.
In these two cases, it may make sense to apply for a virtual credit card. In all other situations, especially when it comes to traveling, you should rather use a real credit card or a prepaid credit card.
With this you have significantly more flexibility, can use the card abroad, in stores and have almost no disadvantages compared to a virtual credit card.
Otherwise, prepaid credit cards, such as the Payango credit card, work with a top-up and offer full cost control.
If you are looking for a real credit card, it depends on whether you want a free credit card, a card for earning miles or a premium credit card, which model is right for you.
To find the right model for your wishes and requirements, you should also take a look at our credit card comparison. There you can select the features that are important to you and quickly find the right credit card for your preferences.
Our conclusion on virtual credit cards
All in all, a virtual credit card is more of a niche product. This is because the benefits are absolutely minimal compared to a normal credit card and it only makes sense to apply for one in absolutely exceptional cases. You should take advantage of the brilliant benefits that a conventional credit card can offer and not miss out on them. In our opinion, an online credit card only makes sense if you can recognize the exceptional cases mentioned above.
Hanseatic Bank GenialCard
- 0 Euro annual fee
- Free withdrawals abroad*
- Free payments worldwide**
- Repayment in small, flexible installments
TF Bank Mastercard Gold
- Aktion: 30 Euro Bonus
- 0 Euro Jahresgebühr
- Weltweit gebührenfrei bezahlen
- Reiserücktrittkostenversicherung inkl.
- Auslandskrankenversicherung inkl.
Barclays Visa
- Deal: 40 Euro bonus
- Free credit card
- Free cash withdrawals worldwide
- Free payments worldwide
- Free loan up to 2 months
Bank Norwegian Visa credit card
- Promotion: 15 Euro welcome bonus
- Free credit card – permanently without annual fee
- Free cash withdrawals worldwide
- Worldwide free payments – no foreign transaction fee
- Attractive travel insurance included
awa7 Credit Card
- 0 Euro annual fee
- Pay worldwide free of charge*
- Withdraw cash abroad free of charge**
- Repayment in small and flexible rates
- Up to 2,000 euros can be paid out immediately
