A virtual credit card (VCC) is a single-use digital card number that OTAs and travel agencies issue to pay hotels for prepaid bookings. Each VCC is tied to one reservation, with a set amount and activation date.
When a guest prepays an OTA, the OTA sends the hotel a VCC instead of the guest's card. The hotel charges it like a normal card, usually on or after check-in day. Limits, expiry dates and activation windows vary by issuer.
Common problems are charging before the activation date, forgetting to charge before expiry and losing track of which VCCs were processed. Hotels with meaningful OTA prepaid volume typically automate VCC charging through their payment provider to avoid leaking revenue.
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