Jul 23

Use Virtual Credit Cards

Millions of Americans are the victims of credit card fraud every year. A fifth of these people blame the internet. In fact, the top reason people shy away from internet shopping is the fear of theft of personal information.

Virtual credit cards, also known as substitute credit card numbers or controlled payment numbers, have already been around almost seven years but have never caught on despite being a free and effective layer of protection.

Here’s how they work. You sign up for the program (MBNA, Citibank, Discover and PayPal all have them.) and download their software. Enter your credit card info, and generate a new number whenever you want to make an online purchase.

Depending on the program, the new number will be one-time use, have a small spending limit with an imminent expiration date, or will be able to be used multiple times but only with one merchant.

Your actual account number will only be visible to you and your bank. The merchant never sees your number and can’t retain your information in his database. This way, hackers will only be able to see your temporary number, which will be useless to them.

So, why haven’t virtual credit cards caught on? Many consumers find them to be a hassle, particularly when you’ll only be liable for at most $50 if your actual credit card is stolen. However, credit card theft can turn into full-blown identity theft when your credit card information is matched up with other information about you that is floating around on the web.

Comments

  • Great Article

    celeblogs.info

    Mar 04
  • check out some practical tips on using credit cards effectively

    smartmoneyindia.blogsp...

    thanks,
    smartmoneyindia.blogsp...

    Feb 17
  • Citibank offers a virtual credit card. One time use, one month expiration.

    The number is different then your primary card no. My internet provider hates it! Because they get their payment ONCE, instead of putting me on 'autopay' like they did before I discovered these!

    Feb 04
  • I live credit cards!

    about-scams.blogspot.com

    Nov 26
  • Make Money Online

    Jun 10
  • I use Virtual credit cards for the last 2 years and never had any problems.

    MoneyIdeas.us

    Jun 10
  • Whahahahah that`s the fraud n00bs ! xD

    May 07
  • Get all the Best Fun feeling your VCC at www.Ezocam.COM

    Guaranteed You be Thrill if not you must definitely be a Banana !

    See for yourself Now at www.Ezocam.Com

    Apr 29
  • Get all the Best Fun feeling your VCC at www.Ezocam.COM

    Guaranteed You be Thrill if not you must definitely be a Banana !

    See for yourself Now at www.Ezocam.Com

    Apr 29
  • Apr 17
  • It is good to shop safely on some web sites. I have used

    WORLDWIDE-VORTUAL-VISA...

    Apr 05
  • Yes, I used Virtualcc.in
    They are the best and fastest

    Mar 29
  • and also at myclenbuterol.com ! Great!

    Mar 26
  • Hi, i used a money-around-the-world card and just ordered with clenbuterol.co.uk and it worked like charm ;)

    Mar 26
  • Hi, i used a money-around-the-world card and just ordered with clenbuterol.co.uk and it worked like charm ;)

    Mar 26
  • Hi, i used a money-around-the-world card and just ordered with clenbuterol.co.uk and it worked like charm ;)

    Mar 26
  • Hi, i used a money-around-the-world card and just ordered with clenbuterol.co.uk and it worked like charm ;)

    Mar 26
  • I purchased a card from Virtualcreditcards.biz ($200 for $228). The virtual card I received has been consistently declined. They have never responded to my e-mails about this.

    Is there any site where I can investigate the card they gave me - to see if there is any validity to it?

    Mar 19
  • I prefer prepaidvirtualcreditca... never failed for me.

    Mar 18
  • nice one , i tried virtualcreditcard.ws very quick service .

    Mar 16
  • LOL ..

    designbuyers.com

    Mar 08
  • Why dont you all just blow

    Feb 13
  • Why dont you all just blow mw?

    Feb 13
  • It still does not solve the problem of wanting to ship a gift to another address. If the delivery address does not match the billing address the terms of the fraud protection agreement have been violated and the bank can make you liable for all the fraud ativity. I know as I'm fighting almost $20,000 in fraudulent charges and they banks says it was my fault for sending gifts to others without notifying them.

    Feb 06
  • Hi! This is a really great article. I’ve had some luck in comparing credit card offers at financeglobe.com The site is legit and has real credit card reviews to check out what people are saying before you sign up.

    Feb 04
  • I had a pretty bad experience using my CC online. Though i got my funds back, i dont want to use it again. I now use Prepaid virtual Mastercard from spotprepaid.com. they are issued by US Bank.
    It is Rechargeable. The advantage i find in their card is AVS. but their fee is more compared to other US Bank Cards.(around 4%)

    Jan 19
  • be

    Jan 12
  • i try tinacard.com and i have a visa prepaid card from him, i can use it on the internet and ATM and reload it without any problem, i like Visa Prepaid Card ..

    Regards

    Nov 04
  • I have used the virtual credit cards generated by my MBNA credit card for quite some time. It was an easy program to use and I could access it directly from an online catalog page. In the last few months, MBNA was taken over by Bank of America and they have ruined it. Not only did they change the grace period to an acutal 10 days, but now they have done away with the virtual card program. You have to sign on to their website with all of the pitfalls and work just to get to the virtual credit card section. Way too much work for a simple program. It's easier to let them eat the fraud. PENNY WISE, POUND FOOLISH!!

    Oct 21
  • Iloved to use Virtual Credit Card forall of my online shop activities.

    Oct 17
  • Iloved to use Virtual Credit Card forall of my online shop activities.

    Oct 17
  • Virtual credit cards are a big relief from online fraud. I actually use a pre-paid card. The provider allows me use the card with no limits, the card number is valid for 2 years, there are no annual fees or transaction fees. No software to download to generate credit card number. Mail me for details.

    Ken
    Email: ktechie2000@yahoo.com

    Oct 01
  • Virtual credit cards are a big relief from online fraud. I actually use a pre-paid card. The provider allows me use the card with no limits, the card number is valid for 2 years, there are no annual fees or transaction fees. No software to download to generate credit card number. Mail me for details.

    Ken
    Email: ktechie2000@yahoo.com

    Oct 01
  • Virtual credit cards are a big relief from online fraud. I actually use a pre-paid card. The provider allows me use the card with no limits, the card number is valid for 2 years, there are no annual fees or transaction fees. No software to download to generate credit card number. Mail me for details.

    Ken
    Email: ktechie2000@yahoo.com

    Oct 01
  • Virtual credit cards are a big relief from online fraud. I actually use a pre-paid card. The provider allows me use the card with no limits, the card number is valid for 2 years, there are no annual fees or transaction fees. No software to download to generate credit card number. Mail me for details.

    Ken
    Email: ktechie2000@yahoo.com

    Oct 01
  • Virtual credit cards are a big relief from online fraud. I actually use a pre-paid card. The provider allows me use the card with no limits, the card number is valid for 2 years, there are no annual fees or transaction fees. No software to download to generate credit card number. Mail me for details.

    Ken
    Email: ktechie2000@yahoo.com

    Oct 01
  • You don't have to use your credit card online to be a victim of credit card fraud. The bigger the bank you have a credit card with, the bigger the target for hackers to try to get any credit card numbers.

    Aug 24
  • Credit cards are meant for convenience purchases. If there isn't a need for them, I would recommend to keep them at home or in your wallet. Use cash! Pre-paid credit cards are just simply as good as a real credit cards. If you are bound to be scammed, there is no turning back.

    Aug 07
  • The only problem with prepaid credit cards is that they have a monthly fee. If you do not use them very often this is a total waste of money. BUT, if you think you will use it often the fees are smal and worth it.

    Aug 04
  • FYI -- PayPal is NOT currently offering this option, although they did beta-test it a while back.

    Jul 29
  • I believe Bank of America offers this same service -- called ShopSafe -- for some of its credit cards. As I undrestand it, you generate a temporary CCN at their web site (you login to a secured account), and this temporary number has its own spending limit. No badly coded software is installed on your computer.

    I do not yet have one of these cards, but a friend does, and he uses it also to purchase things via fax.

    Jul 26
  • I've been using visa, mastercard and disover virtual credit cards for more than 3 years now. Aside from online purchases, I sometimes generate vcc for bills that I mail via USPS. I love using them but they're only fully compatible with IE. Can't cut and paste the info using any other browser especially firefox which is the only one I use.

    Jul 26
  • I have seen these and thought about them, but the ones I have seen work in a different way you buy in effect a prepaid card for say £20 and use that number, but the annoyance for me is say you only want to spend £18, you can't transfer or use up the £2!.

    Jul 26
  • I've been using the PayPal service and I have to say I love it. PayPal is work every penny I pay to them!

    Jul 26
  • I'd be much more likely to use this sort of thing if it didn't require me to install an application on my computer for each credit card issuer. These applications are seldom if ever well written, they tend to make your computer less stable, they never uninstall cleanly, they come with flashy resource intensive effects that I am absolutely not interested in, and who knows what other software they install behind the scenes (think Sony's DRM rootkit). Just give me a form on the issuer's web page where I can generate a temporary card number and be done with it.

    Jul 25
  • i use visa debit card linked to my checking account as well ...
    and i use paypal most of the time ...

    Jul 25
  • I too use a debit card linked to my checking account. I use this for all my day-to-day purchase. I've been meaning to get a low-limit credit card to replace it. Debit cards to my knowledge don't have the same protections that CCs do. With a CC you can contest the charge and the issuing banks almost always default to your case rather than the merchant's. With a debit card, the money wasn't credit and has been taken out of your account. Unless you can get it back, it's gone.

    Jul 25
  • Many people, myself included, use debit Visa/Mastercards almost exclusively for everyday purchases. I also have an account in Citibank and a Mastercard from them so I just checked the link. Just as I expected, it seems like it only works for actual credit cards.

    Jul 25
  • American Expressed used to have virtual card numbers and I used it all the time. They eventually did away with the program. I'm assuming they were looking at the bottom line and felt it was more cost effective to eat the cost of fraud then prevent it.

    Jul 25
  • meh. the whole credit card / identity based financial system is screwed up as it is. there's little reason to adopt new technologies that sector comes out with because they don't _fix_ the underlying problems, but the companies think they do, meaning that they're more likely to make it harder to get off of the hook when their new system fails.

    so, i use a different number for each website, and have been doing that for the past year, and not making any other purchases. then somehow my actual card number surfaces (because it had been skimmed before, or had been obtained another way, which, while currently uncommon, isn't impossible), is used fraudulently, and the company now has a nice excuse of 'well, we don't see where you've used your actual card number, so you must have made the charges'.

    all i've done is made the noose around my neck a little tighter in their still-broken system. a number that is printed on the card, and freely sent to merchants is (obviously) not a secret, and therefore in no way an authentication mechanism. until they fix this (ie with auditable public-key cryptography), then i see no need to play with their snake oil solutions.

    Jul 25
  • What about refunds? Can you generate a new number to get a refund? Don't most merchants require you use the same CC you purchased with? The internet must have the answers!

    Jul 25
  • Don't be fooled into thinking that giving your information to a large corporation is any safer than giving it to a small independent merchant. Corporate databases are major targets for hackers, as the recent spate of well-publicized security failures at companies like ChoicePoint and TJX demonstrates. Major corporations are also likely to preserve your personal information for a long time, and disseminate it to other entities for market research, which means increased vulnerability and exposure to potential identity thieves.

    Jul 25
  • Your talking about identity theft.
    Credit Card fraud is simply the unauthorized use of a single credit card (of that person, perhaps times hundreds to millions of people). Credit Card fraud is typically VERY easy to resolve with the credit card company. Of course, this opens the door to abuse from the cardholder, and this can cause the CC company to question you more thoroughly if the card purchase falls within your normal purchasing habits.

    Jul 25
  • It is, unfortunately, NOT as easy as just reporting it to the cc company. Many people who have been ID theft victims face mounting resistance from the CC companies and wind up in collections for charges they didn't make and the CC company refused to remove or, for whatever reason, didn't believe in the 'fraud'.

    It goes WAY beyond just notifying the CC companies. Once the thieves have your info, it can take years, and lots of money, to correct and recover from the damage.

    Jul 25
  • "Millions of Americans are the victims of credit card fraud every year." Actually if these people reported to their CC company and had the fraudulent charges wiped off, then the credit card companies are the victims of the fraud, theft and loss. The CC customers are simply slightly inconvenienced by having to report the fact. And if they have cards that don't protect them from fraud or have some deductible, they need to get a new card. It's not like they are hard to find.

    Jul 25
  • I have used MBNA (now BofA's) ShopSafe virtual card service for many years now, and totally love it! I don't use it for big / otherwise trustworthy companies, but for smaller ones or ones I just don't feel fully comfortable with, I do. It's a great option!

    Jul 24
  • Ya, some even use pre-paid credit cards like from simon.com in fear of getting scammed online.

    Jul 24