Most people I talk to have never heard of a virtual credit card, or have any idea that they exist or what they are. But they are an invaluable tool for on-line purchases. In essence, it is a disposable credit card. Use it once, discard it, and then get a new one! I prefer the Citibank implementation because it lets you define limits for each card you create. You must first have a Citibank credit card and an online account. When you want a single use virtual credit card, you go to the Citibank website, sign in and create a new card with an expiration date and spending limit of your choosing (for example, if your purchase total is $42.75 then limit the card to $43). You are then provided with a virtual account number that looks like a real credit card number, but it can only be used by one merchant (the first one to put a charge on it) for an amount not to exceed the maximum you have set. The process is fast; it takes only seconds to open the website, log in, and set the card spending limit. In just a few more seconds, you’re on-line purchase is submitted and the merchant has placed a temporary charge on the card. At that point, that card number cannot be used by other party, nor can the merchant successfully increase the charge beyond your preset limit (which you can later increase if you so desire). I am more comfortable making on-line purchases this way, then when using my real credit card at a point of sale.
Here’s links you may find helpful. But please recognize that different banks implement these cards with different features – so it pays to compare.
Citibank – https://www.citibank.com/us/cards/vanpromo/cmc/
Discover – http://www.discovercard.com/customer-service/faq/soan.html
MBNA – https://www.mbnashopsafe.com/ohelp.html
2 comments:
Interestingly, we have 2 cr cards - one for physical purchases & one exclusively for online purchases. I've made LOTS of online purchases, whereas I've made physical purchases using a cr card relatively infrequently. But guess which one we've had the number stolen from? Yep, the one we use for physical purchases.
Soooo, is there such a thing as a single-use credit card you can take to restaurants so when the waiter takes it out of sight the number can't be stolen??
Yes and No. There are no restrictions on where a virtual card can be used -- that I know of. However, on the other hand, no merchant is required to accept your credit card. More than likely a merchant will be leery of you when you are physically present and provide a number without a piece of plastic to back it up. You of course will also have difficulty using a virtual card at a 'pay at the pump' fuel stop - unless you can go inside and pursuade the attendant to use the number you have on a piece of scratch paper. I have been successful using a virtual card at a motel; I tell the person at the desk to just charge the card I used to confirm my reservation - they nearly always say OK without asking to actually see the card.
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