The other type of cards, virtual card also known as E-wallets can be used only for online payment. At present banks like SBI, Axis Bank, Kotak Mahindra and HDFC Bank offers these facilities for free. The virtual cards function like credit or debit cards and you need to transfer some amount in it that can be used only once.

However some banks offer the facility of reloading. You also need to set a limit for the card along with a password. The process of online payment is similar to the credit or debit card but since the amount is less the risk is also lesser.

"These cards can be a one-time use card or multiuse cards. Generally, these cards cannot be reloaded, but some banks do offer a reloading facility. Further, these cards have shorter expiry dates as compared to regular debit cards, and post the expiry, unutilised money gets credited to the originated bank account,", said Deepak Sharma, Executive Vice-President, Kotak Mahindra Bank.

READ MORE: 3 Apps That Manage Money For You