Are Virtual Credit Card Numbers Safe Today?
Just having received the bill for a credit card I haven't used since receiving it several months ago, imagine my surprise to see that I had made some purchases. Now, bear in mind that this card has been in my wallet since I received it seven months ago and still has the activation sticker on it. Yet, I managed to make online purchases of a train ticket in Washington DC, sign up for a monthly MLM program and purchase another travel ticket on hotwire. The card was received seven months ago and the charges only started in November. Is there any way this could have been prevented?
Throw away credit card numbers can be of some use here but probably wouldn't have prevented the above from happening as somehow someone got my name and actual credit card number. But for online shopping protection using virtual credit cards may be helpful - or they may lead us to a false sense of security. Just because I use a virtual card only once doesn't mean someone can't get the real information to use for their benefit.
Just like using a disposable camera instead of your expensive camera while you are traveling to protect from loss or damage, you can use a virtual card to prevent loss when purchasing online. With a virtual credit card number, the number is discarded after one use.
As credit card fraud is so widespread we are no longer surprised by it which means the card companies are looking for some method to deal with their costs. This means they must do so without inconveniencing the ability of the consumer to make purchases online and in person while at the same time protecting vital information. Many would say that the use of virtual credit cards may well be the solution to the problem.
While virtual cards are used to purchase online in the same manner regular cards are, they are temporary numbers. These numbers are issued as a short term replacement of you true card number for purchases. Your personal information is not transmitted to the vendor and often they are single use numbers and a new number must be generated for subsequent transactions. There are other cases where a virtual number can be used for multiple purchases over a limited time period before it cancels.
Protecting the real number from felonious use is the objective with virtual numbers. Should a computer hacker gain access to credit card data from a secure processing center, your account number would be protected. When they attempted to use your virtual number they would be denied credit.
You expect that your card information is safe and secure at secure sites during your purchase. There is however the possibility that an employee of an online merchant could sell credit card information to criminals. While this in itself is a criminal act some people are willing to do anything if the payoff is high enough and there is little chance of them being caught.
Virtual credit card numbers protect your valuable information during online purchases. If a virtual number is stolen it is worthless or becomes worthless in a very short period. When making several purchases with your credit card a month you may realize a real benefit from using a virtual card number for protection and security.
Throw away credit card numbers can be of some use here but probably wouldn't have prevented the above from happening as somehow someone got my name and actual credit card number. But for online shopping protection using virtual credit cards may be helpful - or they may lead us to a false sense of security. Just because I use a virtual card only once doesn't mean someone can't get the real information to use for their benefit.
Just like using a disposable camera instead of your expensive camera while you are traveling to protect from loss or damage, you can use a virtual card to prevent loss when purchasing online. With a virtual credit card number, the number is discarded after one use.
As credit card fraud is so widespread we are no longer surprised by it which means the card companies are looking for some method to deal with their costs. This means they must do so without inconveniencing the ability of the consumer to make purchases online and in person while at the same time protecting vital information. Many would say that the use of virtual credit cards may well be the solution to the problem.
While virtual cards are used to purchase online in the same manner regular cards are, they are temporary numbers. These numbers are issued as a short term replacement of you true card number for purchases. Your personal information is not transmitted to the vendor and often they are single use numbers and a new number must be generated for subsequent transactions. There are other cases where a virtual number can be used for multiple purchases over a limited time period before it cancels.
Protecting the real number from felonious use is the objective with virtual numbers. Should a computer hacker gain access to credit card data from a secure processing center, your account number would be protected. When they attempted to use your virtual number they would be denied credit.
You expect that your card information is safe and secure at secure sites during your purchase. There is however the possibility that an employee of an online merchant could sell credit card information to criminals. While this in itself is a criminal act some people are willing to do anything if the payoff is high enough and there is little chance of them being caught.
Virtual credit card numbers protect your valuable information during online purchases. If a virtual number is stolen it is worthless or becomes worthless in a very short period. When making several purchases with your credit card a month you may realize a real benefit from using a virtual card number for protection and security.
About the Author:
Kermil J. Fogarth has extensive finance information available at his website. For more credit protection tips.
posted by Credit Counseling at
10:51 AM
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